Welcome to Open Science
Contact Us
Home Books Journals Submission Open Science Join Us News Unsubscribe Page
Political Rebound Effects as Stumbling Blocks for Socio-ecological Transition
Current Issue
Volume 6, 2018
Issue 1 (March)
Pages: 7-15   |   Vol. 6, No. 1, March 2018   |   Follow on         
Paper in PDF Downloads: 18   Since Apr. 27, 2018 Views: 293   Since Apr. 27, 2018
Authors
[1]
Karl Aiginger, Vienna University of Economics and Business and Policy Crossover Center, Vienna, Europe.
Abstract
While the extent to which management and owner interests in firms can diverge has been extensively researched, the discrepancy between the preferences of citizens and governmental response to these (or lack thereof) remains under-researched. It may lead to disruptive changes and the unexpected rise of populism that calls for new elites or a return to old values or both. The article begins with the fact that a clear majority of citizens dislike increasing inequality and would like governments to prevent climate catastrophes, ranging from droughts to global warming. Nevertheless, neither green parties nor parties that favour redistribution have been successful in most countries. Documentary policy analysis yields to explanations for this, which are probably interconnected: “political rebound effects” and the fear that inefficient governments might not solve the core problems while increasing the already high tax burden. These hypotheses can hopefully help focus the assessment of uprising populist movements and provide the basis for more empirical research. OLD to be deleted: While it is intensively researched how far interests between management and owners in firms can diverge, the discussion why differences between the preferences of citizens will not be implemented by governments even in the very long run is under researched. These differences then may lead to disruptive changes and the unexpected success of populism calling for new elites or to the return to old values or both. The article starts from the fact that a clear majority of citizens dislike rising inequality and would like governments to prevent climate catastrophes from droughts to global warming. Nevertheless neither green parties nor parties favouring redistribution are successful in most countries. Documentary policy analysis leads to two explanations which will probably work together: first by “political rebound effects” and secondly by the fear that inefficient governments may not solve the prime problems but only increase the already high tax burden. These hypotheses hopefully help to focus the assessment of uprising populist movements and are open to more empirical research.
Keywords
Policy Inefficiency, Governance Problems, Rebound Effects, Social Constructivism, Populism
Reference
[1]
Acemoglu, D., Thoughts on Inequality and the Financail Crisis, January 7, 2011, Denver. http://economics.mit.edu/files/6348
[2]
Aiginger, K., New Dynamics for Europe: Reaping the Benefits of Socio-ecological Transition, WWW for Europe Executive Summary, Vienna, Brussels, 2016 http://Synthesis-Summary.foreurope.eu
[3]
Aiginger, K., A new strategy for the European periphery, WWW for Europe Policy Paper no 1, February 2013.
[4]
Aiginger, K., "Why Growth Performance Differed across Countries in the Recent Crisis: the Impact of Pre-crisis Conditions", Review of Economics and Finance, No. 4 /2011, pp. 35-52.
[5]
Aiginger, K., "Post Crisis Policy: Some Reflections of a Keynesian Economist", in Dullien, S., Hein, E., van Treeck, T. Truger, A., (eds.), The World Economy in Crisis The Return of Keynesianism?, Conference proceedings of the Research Network Macroeconomics and Macroeconomic Policies (FMM), Vol. 13, Metropolis, 2010.
[6]
Aiginger, K., "Strengthening the resilience of an economy, enlarging the menu of stabilization policy as to prevent another crisis", Intereconomics, October 2009, pp. 309-316.
[7]
Aiginger, K., Bärenthaler-Sieber, S., Vogel, J., Competitiveness under New Perspectives, WWW for Europe Working Paper no 44, Oktober 2013.
[8]
Alesina, A., Perotti, R., Income distribution, political instabilita, and investment, European Economic Review, 40 (1), 1996.
[9]
Andrews, J., The World in Conflict - Understanding the World's Troublespots, The Economist Books, 2016.
[10]
Arrow, K. J., "An Economic Agenda of the 21st Century", Special Issue: Review of International Economics, 12 (2), May 2004, pp. 207-212.
[11]
Arrow, K. J., "Knowledge, Belief and the Economic System", WIFO-Monatsberichte 12/2013, pp. 943-951.
[12]
Atkinson, A. B., "Bringing Income Distribution in from the Cold", Economic Journal, 1997, 107 (441), pp. 297-321.
[13]
European Commission, Energy Economic Developments in Europe, European Economy 1, 2014.
[14]
Fitoussi, J.-P., Saraceno, F., Inequality and Macroeconomic Performance, OFCE/Sciences Po, 2010.
[15]
Fitoussi, J.-P., Stiglitz, J., The Ways out of the Crisis and the Building of a More Cohesive World, OFCE Science Po, Document de travail 17, Paris, 2009.
[16]
Geels, F. W. ‘Technological transitions as evolutionary reconfiguration processes: A multi-level perspective and a case-study’, Research Policy, 31 (8-9), 2002, pp. 1257-1274.
[17]
Geels, F. W., ‘Regime resistance against low-carbon energy transitions: Introducing politics and power in the multi-level perspective’, Theory, Culture & Society; accepted and forthcoming 2014.
[18]
IPPC, Climate Change 2013: The Physical Science Basis, Intergovernmental Panel on Climate Change, 2013.
[19]
Minsky, H. P., The Strategy of Economic Policy and Income Distribution, Hyman P. Minsky Archive Paper 353, 1973. http://digitalcommons.bard.edu/hm_archive/353
[20]
OECD, Divided We Stand. Why Inequality Keeps Rising, OECD, Paris, 2011.
[21]
Onara, Ö., Stockhammer, E., Grafl, L., "Financialisation, income distribution, and aggregate demand in the USA", Cambridge Journal of Economics, 2011, 35, pp. 637-661.
[22]
Palley, T., "America's flawed paradigm: macroeconomic causes of the financial crisis and great recession", Empirica, 2011, 38, pp. 3-17.
[23]
Stern, Stern Review: The Economics of Climate Change, HM Treasury, 2007.
[24]
Zachmann, G., Cipollone, V., "Energy competitiveness", in: Veugelers, R., (editor), Manufacturing Europe’s future, Bruegel Blueprint Series, XXI, 2013.
Open Science Scholarly Journals
Open Science is a peer-reviewed platform, the journals of which cover a wide range of academic disciplines and serve the world's research and scholarly communities. Upon acceptance, Open Science Journals will be immediately and permanently free for everyone to read and download.
CONTACT US
Office Address:
228 Park Ave., S#45956, New York, NY 10003
Phone: +(001)(347)535 0661
E-mail:
LET'S GET IN TOUCH
Name
E-mail
Subject
Message
SEND MASSAGE
Copyright © 2013-, Open Science Publishers - All Rights Reserved