“An Economic Policy for Robust Sustainable Recovery”
is a condensed description of economic measures proposed for a robust recovery of ailing european economies. The principles of the proposed measures are based on the more comprehensive paper “An Economic Paradigm for Robust Sustainable Progress”.
An economic paradigm for stable, sustainable, development by Anders Höglund
This discussion paper presents Höglund’s Interest rate rule: a new paradigm within the field of macroeconomics. It suggests practical methods to maintain an optimally strong, environmentally compliant and genuinely sustainable, employment-conducive demand in the economy.
Download the publication here an-economic-paradigm-for-robust-sustainable-progress-alh-march-2012
Swedish version ett-ekonomiskt-paradigm-for-stabil-hallbar-utveckling
This White Paper presents the case for Höglund’s flexible emissions fees mechanism. It discusses the challenge of externalities; ensuring economic growth whilst reducing emissions. It presents the mechanism in principle and explains some of the possible approaches to applying it.
The report outlines a method to put a price on emissions targeted by government for substantial reduction or complete elimination.
The fee provides a mechanism by which pollution can be reduced in an economically efficient manner. The basic principle for the mechanism is that the pollution abatement should be cost efficient, not only concerning the distribution between the measures of abatement but also concerning the speed by which the total amount of pollutant emissions is reduced over time. The concept combines those efficiency advantages of a pollution tax with an innovative way of setting the level of the fee using the decisions of individual firms acting on an open market.
Höglund’s fee does not consider damages to the environment when setting the level of the fee. Rather, the level of the tax is dependent on the development and adoption of cleaner technology. Höglund’s tax also subjects polluting firms to short-term volatility. This drives firms to buy and sell pollution contracts on market in order to hedge their abatement decisions.
Rapporten “En flexibel miljöskatt” på Svenska. The report in Swedish.