The Advantages of the Division of Labour Also Apply to Economic Policy: The Green New Deal

Even in times of the corona pandemic, environmental and climate protection are among the dominant topics in the economic policy debate. This is justified. Global warming is one of the greatest challenges of our time. Tackling it requires a transformation of the economy. CO2 emissions must to be reduced, and we need to adapt to the climate change that has already occurred or will occur despite all efforts. European policymakers have set out to drive this transformation under the banner of the Green New Deal. The objectives of the Green New Deal are shared by a large majority of the population. But it is controversial how and with which instruments these goals should be pursued. There are two opposing concepts. One sees climate protection primarily as a task for environmental and energy policy. Targeted regulations, taxes and new infrastructures should ensure that CO2 emissions are reduced. The other concept calls for all policy areas to be geared to climate protection. This approach is becoming increasingly popular. In particular in financial market regulation and monetary policy, there is currently an intense debate about an orientation towards climate protection.