ABSTRACT
There is a brief summary of market, command and traditional economic systems. Growth theory is introduced – neoclassical and endogenous growth models, the role of technology, diminishing rates and exponential growth rates, convergence and divergence. The role of government versus the market is discussed; political and economic, inclusive and extractive institutions analysed. The ecological footprint of rich and poor countries is compared; the use of market incentives to protect the planet introduced. Depletion rates of exhaustible and non-exhaustible natural assets is contrasted. Consequences of environmental externalities and imperfect information are discussed; concepts of the tragedy of the commons and debt-for-nature swaps are introduced. Rates of technological progress to protect the environment compared to rates of environmental destruction are critical.
