William Nordaus is a recipient of the 2018 Nobel Prize for Economics. He’s been recognised for his work on climate change and his quest to develop economic policy that will mitigate the worst extremes of our impact on the planet. But, as Prof Steve Keen discusses in this edition of The Debunking Economics podcast, his model is doing more harm than good, underestimating the influence of rising temperatures on GDP. For example, an increase in temperature of 10C will see global GDP fall by 25 percent – yet at such a temperature the majority of people on the planet will be wiped out. Phil Dobbie asks, can you expect any growth in GDP if you are aiming to curtail temperatures – aren’t the two forces mutually exclusive?
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