This seminar is part of the Climate Cookies & Coffee series of the Belgian Climate Centre. This is a new seminar series launched by the Belgian Climate Centre to foster knowledge-sharing, collaboration, and interdisciplinary discussion among climate researchers.
For this edition, the Belgian Climate Centre will welcome Carles Mañó-Cabello (KU Leuven) with a presentation on "Climate Change, Endogenous Growth and Time-Inconsistency".
Procrastination might be good for the planet. This surprising idea emerges from studying how our tendency to delay decisions impacts economic growth, the use of natural resources, pollution, and thus, temperature. Economists often assume that people make consistent choices over time. However, in reality, we often procrastinate, choosing immediate gratification over long-term benefits—a concept known as time-inconsistency. This research uses a model of economic growth that is driven by internal factors like innovation and knowledge. The study incorporates the use of finite natural resources and the resulting pollution, which in turn affects the climate and causes damages. By comparing the actions of "naive" decision-makers, who are unaware of their tendency to procrastinate, with those who make consistent choices, the study reveals an interesting outcome. The procrastinator's behavior, under a certain condition, could be beneficial for climate change.
