The Earth is getting warmer. Yet, as Hans-Werner Sinn points out in this provocative book, the dominant policy approach--which aims to curb consumption of fossil energy--has been ineffective. Despite policy makers' efforts to promote alternative energy, impose emission controls on cars, and...

Based on explicit present value calculations, the paper critizises the view theat den PAYGO system wastes economic resources. In present value terms, there is nothing to be gained from a transition to a funded system even though the latter offers a permanently higher rate of return. The sum of...