TITLE:
An Economic Instrument to Improve the Climate in Sweden
AUTHORS:
Jan Stenis
KEYWORDS:
Climate Change, Economic Instrument, Sweden
JOURNAL NAME:
Theoretical Economics Letters,
Vol.10 No.4,
August
5,
2020
ABSTRACT: Objectives: The Naturally Optimised Revenue Demand in
Communities (NORDIC) model was applied to improve the Swedish climate. When substantial changes in the atmosphere’s
temperature occur, the profits can be reduced, creating a strong driving force
for authorities to cope with climate change. A new
and practical economic instrument was introduced to improve climate management,
based on the NORDIC model. Methods: Constructed shadow costs were produced to be inserted into the
public accounts. This procedure induced economic incentives to decrease the
climate changes. The launched methodology considered the public awareness about
climate change issues. This case study provided an example of how to improve
the climate in the Swedish society by applying the NORDIC model. Results: The methodology could
improve the climate and decrease its fluctuations by using economic instruments.
The resulting shadow cost impacted the Public Sector Borrowing Requirement. An
introduced key factor expressed, by one digit only, the success of the climate
policy. Conclusions: The
NORDIC model could improve the Swedish climate and its danger to health.
Governments obtain a tool to monitor, manage and evaluate the atmosphere. End
users include environmental authorities and politicians that want a climate
policy tool. The NORDIC model is recommended to apply to climate issues and
raise the public awareness about climate change. Further research focus on
algorithms for certain climates and affected citizens.