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Modelling the balanced transition to a sustainable economy

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  • Georges BASTIN

    ()
    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Mathematical Engineering,(ICTEAM))

  • Isabelle CASSIERS

    ()
    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES), CIRTES an IACCHOS)

Abstract

We present a simple mathematical model for the transition to a sustainable economy in order to explore the long-run evolution of an economy that achieves environment protection, full recycling of material resources and limitation of greenhouse gas emissions. The main concern is to investigate how balanced economic paths are modified under public policies for transition to sustainability. We consider a world economy with two subregions that are endowed with greenhouse gas emissions and ecological footprint of OECD and non-OECD countries respectively. Then, for the OECD subregion, three different options are investigated : a green growth option that focuses on accelerating the green technological change, a low growth option that focuses on shifting the structure of the economy towards low carbon and low capital intensive activities and a combined green-low growth option that focuses on the limitation of material resources and the abatement of the ecological footprint.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2013014.

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Length: 21
Date of creation: 09 Jun 2013
Date of revision:
Handle: RePEc:ctl:louvir:2013014

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Keywords: modelling; sustainability; balanced growth; transition;

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  1. Spash, Clive L., 2012. "New foundations for ecological economics," Ecological Economics, Elsevier, vol. 77(C), pages 36-47.
  2. BRECHET, Thierry & CAMACHO, Carmen & VELIOV, Vladimir, 2010. "Model predictive control, the economy, and the issue of global warming," CORE Discussion Papers 2010016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Fagnart, Jean-François & Germain, Marc, 2011. "Quantitative versus qualitative growth with recyclable resource," Ecological Economics, Elsevier, vol. 70(5), pages 929-941, March.
  4. Graham M Turner, 2008. "A Comparison of the Limits to Growth with Thirty Years of Reality," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2008-09, CSIRO Sustainable Ecosystems.
  5. Jonathan Temple, 2006. "Aggregate Production Functions and Growth Economics," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(3), pages 301-317.
  6. Victor, Peter A. & Rosenbluth, Gideon, 2007. "Managing without growth," Ecological Economics, Elsevier, vol. 61(2-3), pages 492-504, March.
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