Very brave picking on Poor Poor Pitiful Paul for a partial equilibrium analysis. His analysis of one indicator energy price is consistent with his typical MO, which zooms in on key variables in the general equilibrium model.
Looking at the fertilizer-food impacts is good, sez the ag economist who examined the R&D roots of the so-called Green Revolution semi-dwarf grains, which use nitrogen fertilizers intensively. This part of the polycrisis looks particularly ugly,, as it will land on countries dependent on Hormuz-bound fertilizers for fertilizer-intensive food. I'm thinking the Indus Valley; I'm guessing that Mexico makes its own fertilizer from its own hydrocarbons. And Sudan, and rice in Bangladesh. This is a topic for the International Food Policy Research Institute (IFPRI).
The Hormuz crisis has short-run impacts on the energy and food sectors very similar to the short-run incidence of increasing carbon prices, on the way to the long-term carbon economy.
As we respond to the immediate shock, we do well to co-produce the financial mechanisms and political arrangements that facilitate the growth of our existing innovations in carbon capture forests stewardship, as well as the many other avenues for innovation that carbon economics opens.
Krugman made some predictions about oil in 2008 that were way off.
The price elasticity of demand is rather inelastic.
Word of Our Times: polycrisis.
Very brave picking on Poor Poor Pitiful Paul for a partial equilibrium analysis. His analysis of one indicator energy price is consistent with his typical MO, which zooms in on key variables in the general equilibrium model.
Looking at the fertilizer-food impacts is good, sez the ag economist who examined the R&D roots of the so-called Green Revolution semi-dwarf grains, which use nitrogen fertilizers intensively. This part of the polycrisis looks particularly ugly,, as it will land on countries dependent on Hormuz-bound fertilizers for fertilizer-intensive food. I'm thinking the Indus Valley; I'm guessing that Mexico makes its own fertilizer from its own hydrocarbons. And Sudan, and rice in Bangladesh. This is a topic for the International Food Policy Research Institute (IFPRI).
The Hormuz crisis has short-run impacts on the energy and food sectors very similar to the short-run incidence of increasing carbon prices, on the way to the long-term carbon economy.
As we respond to the immediate shock, we do well to co-produce the financial mechanisms and political arrangements that facilitate the growth of our existing innovations in carbon capture forests stewardship, as well as the many other avenues for innovation that carbon economics opens.
Washoe Forests Carbon Bank!
Si se puede!