Why climate change is an example of market failure

Why climate change is an example of market failure

Join Amit Kara, climate macroeconomist, as he explains why markets have so far failed on climate change.

Climate change damages the planet, and we know that human activity generates the greenhouse gases that are causing that change. So why are we not acting in our self-interest, and addressing the problem? The reason for inaction is because climate change is an example of market failure. To learn about the climate change market failure, watch this video from Finance Unlocked and Amit Kara, formerly a senior macro economist at the National Institute of Economics and Social Research (NIESR) who leads research projects around carbon taxes and extreme weather events.

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Sign up for a free trial to finish the Climate Change Economics pathway. Here’s what you’ll learn:

  • Understand the impact of physical damage from climate change on the economy
  • The best ways to address climate change
  • How can policy intervention aid the transition to a zero carbon economy?
  • The essential role of financial markets
  • The Kaya Identity: a simple model economists use to understand climate scenarios
  • The SSPs framework used by the UN to describe future scenarios

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