Climate change is perhaps the seminal issue that will confront the world in the 21st century. Across the globe, melting glaciers, flooding, droughts, reductions in crop yields, increased food prices, species extinction, as well as negative consequences on health and human wellbeing, have all been attributed to climate change. While climate change has been a topic of deep exploration among natural scientists for a number of years, economists have yet to apply the full academic rigor of their discipline to this grand challenge. Solving this problem effectively and efficiently will require the application of economic theory to harness the power of markets and channel private incentives towards socially beneficial ends.
The Institute elevates awareness for climate change through a series of events for the public and funds research to advance the theoretical and quantitative analysis of the economics of climate change.
At a September 2022 policy forum hosted by the Heller-Hurwicz Economics Institute, University of Minnesota alumnus and Swedish economist Per Krusell explained his research on a global carbon tax and how it can curb the effects of climate change. Read a recap of his research and watch the event recording.