Shadow Impact of COVID-19 on Economies: A Greater Depression?

What We Have Learned from Editing This Book?

Many authors are of the opinion that even though this pandemic is deeply disturbing, it should equally been seen as a learning opportunity and a wake-up call to address certain issues. The articles take into account over 500,000 deaths around the globe, millions more affected by the illness, and the large number of people who have plunged into abject poverty, food insecurity and desperation. They noted how communities have lost their basic income source, and how shutting down of borders has reduced migration, increasing the number of people that will need to survive through nature. Simultaneously, the world-scale shutdown has offered scenarios that assist researchers in their study of social-environmental and economic relations; something that ordinarily would not have been feasible. For instance, issues like the relationships between economic production, relationship between nations, logistic, psychological as well as social COVID-19 impact; or how far sudden economic events bring about alterations in attitudes and behaviors towards government policies, can be examined through the eyes of the current situation.

Most of the papers here draw similarities to the financial crisis that happened in 2008–2009. But the depth and scope of the effects of this pandemic makes it bigger. With huge unemployment, rising government debt, increase breakdown of international cooperation, internal and international trade network disruptions, some food network disruptions; the pandemic shares several characteristics for the previous economic crises and armed conflicts, natural disasters, and political shocks. This has become a litmus test for the various political ideologies, as well as the abilities of countries to cooperate and coordinate. They can emerge to be particularly essential for the various stimulus packages geared towards getting everyone back on their feet and on track. To reduce the possibility of any rebounding effect, there needs to be a level of effectiveness in policy coordination. But, as some papers debate, cooperation or coordination has remained difficult but not elusive. As such, we cannot help but imagine if the current pandemic will resort to more individualism and protectionism, or if world leaders will want to work together. This question equally has serious repercussions regarding how nations are cooperating with one another to tackle issues like international pollution spillover or climate change. Would this pandemic help leaders understand that global challenges require a global solution?

With many nations and international organizations having shown the capability to mobilize, as well as the readiness to implement drastic measures in curbing the virus from spreading, accompanied by advanced level of economic support to those who have been affected should give us some glimmer of hope.

We agree with several authors that the need for a sustainable economic stimulus offers a chance to introduce the necessary green transition that is needed to handle the long-term environmentally related challenges like climate change which threatens people and national economies worldwide. The size of present and future fiscal interventions can be such that when fiscal policies are strategically deployed, more effective green-based economic activities are activated, and this could bring about a huge shift towards canceling out the risks posed by fisheries/ocean collapse, climate change, and habitat as well as species losses.

The calls by the society and academics for rescue efforts to be combined with green transition have been very encouraging, with everything highlighted here. But, the current economic recession succeeding the health pandemic has altered the research scene for economic policy instruments. If taxes on carbon is only perceived by the public as a way of reducing wage income as well as increasing the risks of work opportunities, it will be more urgent to advance and explore what we know regarding the real carbon pricing implications in the labor market. To get stronger social support of carbon prices and policies for environment-based transition, a more serious contract showing more involvement of citizen is needed for changes like that to be accepted and also important for giving more strengths to the social norm necessary for internalization of decentralized externalities. The issue of international cooperation regarding whether crisis will reduce, or create incentives for carbon policy internationally.

For science, economics, and sociology, such uncertainties can be troubling and highly stimulating. In the following pages, a healthy summary of research agenda and ideas awaits discovery. We are optimistic that readers will find early results that are interesting, they will be inspired to come up with new research ideas, while taking note of every policy opportunities and challenges lying ahead.

We understand that coronavirus will lose its traction, but not without leaving some economic scars and lasting concerns.