SUSTAIN 1S03 Lecture Notes - Lecture 4: Great Divergence, Industrial Revolution, Arbitrage
29 Jan 2020
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Document Summary
Martin wolf- limits to growth in the 21st century. We do not fully understand the constraints on economic growth, One challenge is marketed and non marketed resources. Looks at economic growth and demand for non-renewable resources. Most important economic growth-catch up of developing countries. World needs to generate energy, while breaking the link between output and emissions. Gdp- omits things that impact welfare like pollution. First- productivity rose very little throughout human history. Second- productivity started to rise rapidly, leading to the great divergence where western countries became rich, economists call it arbitrage. Third- huge increase in input of cheap energy and output of greenhouse gas. Fourth- great convergence, countries started to catch up again. Industrial revolution is an energy revolution, then cause revolution in science ideas, then in institutions with affluence and opportunities. 3/4 people can enjoy the living standards of today by 2050, world output would dramatically increase.
