Shaping institutions, policies & norms

Most of the grand challenges of our times arise because the cost that certain economic activities impose on the planet, society and future generations is “ignored”. Well designed environmental policy and strategies are key to disclose those costs and help society make economic decisions that are sustainable.

Preserving the environment, reducing inequality or building a resilient economy are challenges that cannot be adressed by individuals, organisations and firms without common objectives, rules and cooperation. Regulation, taxation and public-private partnerships provide a common framework and set rules necessary for all stakeholders to adress the grand challenges.

The performance and behavior of the economy as whole, within and beyond national borders, is affected by global developments such as climate change, COVID 19, global inequality and international regulation. Understanding and anticipating macroeconomic developments is fundamental for a smooth and rapid transition to a sustainable economy.

Many human decisions are driven by social norms, emotions, heuristics and beliefs that go beyond the rational weighting of costs and benefits. Understanding social norms and behavior is crucial because changing many of them is needed to transition to resilient and inclusive economy within planetary boundaries.