კონფერენცია

∘ Nata Davlasheridze ∘
THE NOBEL PRIZE LAUREATE IN ECONOMY FOR 2018 WILLIAM D. NORDHAUS – ONE OF THE FOUNDERS OF "GREEN ECONOMY"

Summary

Green economy – the direction in economic science created in the last two decades according to which, the economy is a dependent component of the environment within which it exists and is its part. Clean or "green" technologies are the cornerstone of green economy. In the long term the green economy is capable to provide significant growth in GDP, to lift income per capita and employment in the same, or even higher rates, than traditional economy. William D. Nordhaus – the American economist, professor of Yale University, the Nobel Prize laureate in economy for 2018 which he received for integration of global climate changes into macroeconomic forecasting is considered as one of founders of this new direction in economic science. Nordhaus became the first economist who created the mathematical model describing the impact of climatic changes on economic growth. He first looked at climate change as on an economic problem and offered one of ways of its regulation through conducting taxation of emissions of carbon (for today Nordhaus estimates the amount of a tax for all countries without exception approximately at 40 dollars for ton of emissions).

Nordhaus offers the new analysis of why the former policy including the Kyoto Protocol could not slow down emissions of a carbon dioxide gas how new approaches there can be successful and what tools of policy will reduce most effectively emissions. Thus, it clears up the defining problem of our time and states the subsequent important steps for deceleration of a trajectory of global warming.

The complex of the DICE models (Dynamic Integrated Climate-Economy) and RICE (Regional Integrated Climate-Economy model) developed by Nordhaus, allows to make quantitative assessment of long-term perspectives of development of world economy taking into account the growing impact of climatic changes, to take into account the probabilistic nature of changes and effects of their influence on economy and dynamics of world GDP and also on economy of different regions of the world. These models constantly are updated and improved by Nordhaus, at the same time the basic model remains canonical. At the moment they are widely used at calculation of risks for economy from climatic changes in many countries of the world. Use of all advantages of "green economy" is very important for Georgia.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Nata Davlasheridze ∘ THE NOBEL PRIZE LAUREATE IN ECONOMY FOR 2018 WILLIAM D. NORDHAUS – ONE OF THE FOUNDERS OF "GREEN ECONOMY" Summary Green economy – the direction in economic science created in the last two decades according to which, the economy is a dependent component of the environment within which it exists and is its part. Clean or "green" technologies are the cornerstone of green economy. In the long term the green economy is capable to provide significant growth in GDP, to lift income per capita and employment in the same, or even higher rates, than traditional economy. William D. Nordhaus – the American economist, professor of Yale University, the Nobel Prize laureate in economy for 2018 which he received for integration of global climate changes into macroeconomic forecasting is considered as one of founders of this new direction in economic science. Nordhaus became the first economist who created the mathematical model describing the impact of climatic changes on economic growth. He first looked at climate change as on an economic problem and offered one of ways of its regulation through conducting taxation of emissions of carbon (for today Nordhaus estimates the amount of a tax for all countries without exception approximately at 40 dollars for ton of emissions). Nordhaus offers the new analysis of why the former policy including the Kyoto Protocol could not slow down emissions of a carbon dioxide gas how new approaches there can be successful and what tools of policy will reduce most effectively emissions. Thus, it clears up the defining problem of our time and states the subsequent important steps for deceleration of a trajectory of global warming. The complex of the DICE models (Dynamic Integrated Climate-Economy) and RICE (Regional Integrated Climate-Economy model) developed by Nordhaus, allows to make quantitative assessment of long-term perspectives of development of world economy taking into account the growing impact of climatic changes, to take into account the probabilistic nature of changes and effects of their influence on economy and dynamics of world GDP and also on economy of different regions of the world. These models constantly are updated and improved by Nordhaus, at the same time the basic model remains canonical. At the moment they are widely used at calculation of risks for economy from climatic changes in many countries of the world. Use of all advantages of "green economy" is very important for Georgia.