The Advantages of the Division of Labour Also Apply to Economic Policy: The Green New Deal

Even in times of the corona pandemic, environmental and climate protection are among the dominant topics in the economic policy debate:this is justified, as global warming is one of the greatest challenges of our time. Tackling it requires a transformation of the economy by reducing CO2 emissions and adapting to the climate change that has already occurred or will occur despite all efforts. European policymakers have set out to drive this transformation under the banner of the Green New Deal, its objectives shared by a large majority of the population. But it is controversial how and with which instruments these goals should be pursued. In this EconPol article, Clemens Fuest examines the options.