Open AccessDo people really care about global warming?
Author(s) -
Francesco Busato,
Bruno Chiarini,
Gianluigi Cisco,
Maria Ferrara
Publication year - 2022
Publication title -
economics and business letters
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.197
H-Index - 4
ISSN - 2254-4380
DOI - 10.17811/ebl.11.1.2022.24-32
Subject(s) - dynamic stochastic general equilibrium , economics , global warming , context (archaeology) , consumption (sociology) , investment (military) , natural resource economics , climate change , macroeconomics , ecology , monetary policy , paleontology , social science , sociology , biology , politics , political science , law
Global warming represents a "hot" topic in our current daily life. This paper builds up and simulates a dynamic stochastic general equilibrium (DSGE) model in the spirit of Nordhaus (2008) while investigating consumers' behavior in a context where economic and environmental issues interact. The paper suggests that households do not care about global warming as much as they should. Even if households make pro-environmental consumption choices, their investment decisions focus on the economic aspect mainly. Therefore, households' propensity to consume clean products is not sufficient to produce benefits to the environment.