Economic Analysis of Global and Local Policies for Respecting Planetary Boundaries

Abstract

In a series of highly cited papers over the period of 2009–2023, earth system scientists have identified a set of nine planetary boundaries that must not be breached if we wish to avoid catastrophic consequences for nature and humanity. These range from well-mixed, global boundaries, such as climate-altering atmospheric greenhouse gas concentrations, to localized limits on freshwater availability and reactive nitrogen entering the environment. Recent estimates suggest that six of the nine planetary boundaries have already been breached. The food system is a key driver of these exceedances and, therefore, must play a key role in any solutions. However, the establishment of these boundaries and the analysis of potential solutions have often been devoid of economic considerations. Furthermore, in the case of several of these planetary boundaries, limited attention has been given to the economic policies that might allow society to address them, as well as the likely synergies and tradeoffs across economic policies targeted to individual objectives. This paper seeks to bring further economic analysis to bear on the quantitative assessment of global and local economic policies aimed at respecting these planetary boundaries, concluding with seven lessons to inform future research on this topic.