Economic Growth and Sustainability
The importance of economic stability and the sustainability of economic development are high on the political agenda. They are key topics of scientific debate and not only since the financial crisis. Global climate change shows that the current form of economic activity in many industrialized countries is not sustainable. The ifo Institute investigates short-term determinants of growth through its economic surveys and forecasts and uses the resulting data to investigate fundamental macroeconomic issues. In the medium and long term, economic growth will be determined by private and public investment, especially in education, innovation, and the adaptation of new technologies. The capacity for structural change is also of crucial importance. Sustainable economic growth requires stable private and public finances, resilience to economic shocks and a careful use of natural resources.
“State intervention in the energy market makes long-term investors nervous and often has little effect in terms of incentivizing emissions reductions.”
Prof. Dr. Karen Pittel, Director of the ifo Center for Energy, Climate and Resources
