Climate Change - The Tragedy of the Commons
In this enlightening episode of "Sustainability Forward," hosts Wrishi and Carmine dive deep into the complexities of climate change with the esteemed Professor Karl Schmedders from IMD. As the world faces an unprecedented environmental challenge, understanding the economic underpinnings and potential solutions becomes crucial. From the latest alarming findings by the World Meteorological Organization to exploring the "tragedy of the commons," this episode unravels why climate change represents the ultimate market failure and what can be done about it.
Professor Schmedders brings his vast expertise in finance and economics to discuss why the climate crisis is different from any other economic challenge, dubbing it the "mother of all externalities." The conversation navigates through potential solutions such as carbon permits, border carbon adjustments, and corporate incentives, weighing their pros and cons in our quest for sustainability.
Join us as we explore the intersection of economics and environmentalism, shedding light on how we can leverage market forces for the greater good. Whether you're a climate enthusiast, a professional seeking to incorporate sustainability into your business, or simply curious about the economic aspects of climate change, this episode offers invaluable insights into harnessing the power of economics to combat one of the most pressing issues of our time.
Professor of Finance, IMD
Karl Schmedders is Professor of Finance at IMD. His research and teaching at IMD currently focus on the economics of climate change. Karl believes that finance and economics offer many tools to combat climate change, and that the power of incentives and markets can be employed to make progress. In addition, businesses and consumers need to take a leading role in the search for solutions to the climate crisis and not just wait for governments and policymakers to introduce climate change mitigation and adaptation measures. Before joining IMD in 2019, Karl was Professor of Quantitative Business Administration at the University in Zurich and Associate Professor (with tenure) at the Kellogg School of Management. He received a PhD in Operations Research from Stanford University. He is a fellow of the Game Theory Society and an SAET Economic Theory Fellow.
