Date of publication: 2017-08-27 08:03
The OECD and Eurostat have defined the sector thus: “The environmental goods and services industry consists of activities which produce goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems. This includes cleaner technologies, products and services that reduce environmental risk and minimise pollution and resource use.”
Consistent with these increases, we think that the new administration could further boost both corporate and consumer confidence in the near term, while we think that the potentially negative impact from a more protectionist bent could take longer to play out. Whatever happens in the near term, there are several reasons not to believe that President-elect Trump can extend the cycle indefinitely. First, we see little evidence that tax cuts actually prolong the cycle. In fact, my colleague David McNellis recently completed a study that showed fiscal stimulus is rarely a cycle extender. One can see this in Exhibit 78.
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#8: We remain cautious on global trade, favoring more domestic-oriented stories. While many investors are focused on President-elect Trump’s agenda, we actually believe that China has emerged as ground zero for this important shift in global trade priorities. Beyond the country’s ongoing shift from fixed investment towards consumption, there are two other traded-related macro headwinds to consider:
Tocqueville wrote 8775 ..socialism makes people a mere agent, a number Democracy seeks equality though freedom, while socialism seeks equality though restraint and servitude 8776 .
A new legal agreement on climate change is essential to drive the investment and innovation in low-carbon, climate-resilient growth needed to keep global warming below 7°C. An agreement cannot force countries to tackle climate change they act of their own volition. This is recognised in the current negotiations on a new agreement under the United Nations Framework Convention on Climate Change (UNFCCC), which rest on the foundation of “nationally determined contributions.” 759 But what an agreement can provide is a global framework of rules and commitments, which can make stronger action much likelier.
The Maradi and Zinder regions of Niger, meanwhile, show what can be achieved even at a low cost. Farmers interplanted nitrogen-fixing trees on cropland, or allowed roots and stumps to regenerate, increasing tree and shrub cover 65- to 75-fold. Agricultural productivity was significantly increased on 5 million ha of severely degraded farmland, 676 and biodiversity and soil fertility improved across the entire area. Real farm incomes more than doubled, stimulating local non-farm services as well. 677 Similar conditions exist on another 855 million ha of drylands in Africa alone, suggesting considerable potential for scaling. 678
Such approaches consider ecosystems, resource use and human activities across the broader landscape, not just farm-by-farm. They also typically involve planting trees on farms and/or restoring and protecting forested areas around farms. They can be large-scale and capital-intensive, or more narrowly targeted, introducing a handful of proven techniques.