COVID-19 and Climate Change: A Tale of Two Global Problems

24 Pages Posted: 19 May 2020

See all articles by Rolando Fuentes

Rolando Fuentes

EGADE Business School, Tecnologico de Monterrey

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP); GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks

Alessandro Lanza

Luiss University of Rome; Euro-Mediterranean Center on Climate Change (CMCC)

Baltasar Manzano

Universidade de Vigo

Date Written: May 18, 2020

Abstract

In this paper, we examine the similarities and the differences between two global problems, the Coronavirus pandemic and climate change, and the extent to which the experience with the COVID-19 pandemic can be of use for tackling climate change. We show that both problems share the same microeconomic foundations in that both entail the overprovision of a global public bad and entail externalities whose correction comes at very high economic and social costs. We leverage on a well-established problem such as climate change that has been studied for several years now, to highlight the common traits with the Covid-19 pandemic, but also important differences. The COVID-19 crisis is itself a reality check for climate policy, international governance and prevention in general. Indeed, the COVID-19 pandemic is a mock laboratory of climate change, where the time scale of unfolding events is reduced from decades to days. While the former is often measured in days, weeks, months, years, the latter is measured in years, decades, and centuries.

Keywords: Coronavirus, COVID-19, climate change, global public goods, mitigation, adaptation, technological innovation

JEL Classification: Q54, Q55, Q58, I15, I18, D01

Suggested Citation

Fuentes, Rolando and Galeotti, Marzio and Lanza, Alessandro and Manzano, Baltasar, COVID-19 and Climate Change: A Tale of Two Global Problems (May 18, 2020). Available at SSRN: https://ssrn.com/abstract=3604140 or http://dx.doi.org/10.2139/ssrn.3604140

Rolando Fuentes

EGADE Business School, Tecnologico de Monterrey ( email )

Av. Ramon Corona 2514
Col. Nuevo Mexico
Zapopan, 45138
Mexico

Marzio Galeotti

University of Milan - Department of Environmental Science and Policy (ESP) ( email )

2 via Celoria
Milano, 20133
Italy
+39-2-50316470 (Phone)
+39-2-50316486 (Fax)

HOME PAGE: http://www.unimi.it/chiedove/cv/ENG/marzio_galeotti.pdf?1531977155891

GREEN - Centre for Research on Geography, Resources, Environment, Energy & Networks ( email )

via Rontgen
Milan, 20123
Italy
+39-2-58362340 (Phone)

HOME PAGE: http://https://www.green.unibocconi.eu

Alessandro Lanza

Luiss University of Rome ( email )

Viale Romania 32
Rome, 00197
Italy

Euro-Mediterranean Center on Climate Change (CMCC) ( email )

Baltasar Manzano (Contact Author)

Universidade de Vigo ( email )

Here is the Coronavirus
related research on SSRN

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