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Ecological Macroeconomic Models: Assessing Current Developments

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  • Hardt, Lukas
  • O'Neill, Daniel W.

Abstract

Our society faces a dilemma. While continued economic growth is ecologically unsustainable, low or negative rates of economic growth are accompanied by adverse social impacts. Hence there is a need for macroeconomic tools that can help identify socially sustainable post-growth pathways. The emerging field of ecological macroeconomics aims to address this need and features a number of new macroeconomic modelling approaches. This article provides (1) a review of modelling developments in ecological macroeconomics, based on the literature and interviews with researchers, and (2) an analysis of how the different models incorporate policy themes from the post-growth literature. Twenty-two ecological macroeconomic models were analysed and compared to eight policy themes. It was found that environmental interactions and the monetary system were treated most comprehensively. Themes of income inequality, work patterns, indicators of well-being, and disaggregated production were addressed with less detail, while alternative business models and cross-scale interactions were hardly addressed. Overall, the combination of input-output analysis with stock-flow consistent modelling was identified as a promising avenue for developing macroeconomic models for a post-growth economy. However, due to the wide interpretation of what “the economy” entails, future research will benefit from employing a range of approaches.

Suggested Citation

  • Hardt, Lukas & O'Neill, Daniel W., 2017. "Ecological Macroeconomic Models: Assessing Current Developments," Ecological Economics, Elsevier, vol. 134(C), pages 198-211.
  • Handle: RePEc:eee:ecolec:v:134:y:2017:i:c:p:198-211
    DOI: 10.1016/j.ecolecon.2016.12.027
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    Cited by:

    1. Stratford, Beth, 2020. "The Threat of Rent Extraction in a Resource-constrained Future," Ecological Economics, Elsevier, vol. 169(C).
    2. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully dynamic input-output/system dynamics modeling for ecological-economic system analysis," ULB Institutional Repository 2013/277116, ULB -- Universite Libre de Bruxelles.
    3. Lamperti, F. & Dosi, G. & Napoletano, M. & Roventini, A. & Sapio, A., 2018. "Faraway, So Close: Coupled Climate and Economic Dynamics in an Agent-based Integrated Assessment Model," Ecological Economics, Elsevier, vol. 150(C), pages 315-339.
    4. Barrett, Adam B., 2018. "Stability of Zero-growth Economics Analysed with a Minskyan Model," Ecological Economics, Elsevier, vol. 146(C), pages 228-239.
    5. Adam B. Barrett, 2017. "Stability of zero-growth economics analysed with a Minskyan model," Papers 1704.08161, arXiv.org, revised Nov 2017.
    6. Nabernegg, Stefan & Bednar-Friedl, Birgit & Muñoz, Pablo & Titz, Michaela & Vogel, Johanna, 2019. "National Policies for Global Emission Reductions: Effectiveness of Carbon Emission Reductions in International Supply Chains," Ecological Economics, Elsevier, vol. 158(C), pages 146-157.
    7. Etienne Espagne, 2018. "Money, Finance and Climate: The Elusive Quest for a Truly Integrated Assessment Model," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(1), pages 131-143, March.
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    9. Ciarli, Tommaso & Savona, Maria, 2019. "Modelling the Evolution of Economic Structure and Climate Change: A Review," Ecological Economics, Elsevier, vol. 158(C), pages 51-64.
    10. Svartzman, Romain & Dron, Dominique & Espagne, Etienne, 2019. "From ecological macroeconomics to a theory of endogenous money for a finite planet," Ecological Economics, Elsevier, vol. 162(C), pages 108-120.
    11. Mondéjar Jiménez, José & Vargas Vargas, Manuel, 2018. "Modelos de comportamiento ambiental en economía ecológica: Una revisión bibliográfica/Models of Environmental Behavior in Ecological Economics: A Literature Review," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 309-316, Enero.
    12. Naqvi, Asjad & Stockhammer, Engelbert, 2018. "Directed Technological Change in a Post-Keynesian Ecological Macromodel," Ecological Economics, Elsevier, vol. 154(C), pages 168-188.
    13. Nieto, Jaime & Carpintero, Óscar & Miguel, Luis J. & de Blas, Ignacio, 2020. "Macroeconomic modelling under energy constraints: Global low carbon transition scenarios," Energy Policy, Elsevier, vol. 137(C).
    14. Larch, Mario & Löning, Markus & Wanner, Joschka, 2018. "Can degrowth overcome the leakage problem of unilateral climate policy?," Ecological Economics, Elsevier, vol. 152(C), pages 118-130.
    15. Jean-François FAGNART & Marc GERMAIN, 2017. "Quelques leçons d'un modèle de macroéconomie écologique à 2 périodes," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2017009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    16. Gaël Giraud & Florent MCISAAC & Sarah BOTTON & Emmanuel Bovari, 2018. "Carbon Pricing and Global Warming: A Stock-flow Consistent Macro-dynamic Approach," Working Paper 0a6be926-7c78-4aba-a60b-6, Agence française de développement.
    17. Nicolas Piluso & Edwin Le Héron, 2017. "La taxe carbone dans une économie d'inspiration keynésienne," Post-Print hal-01454866, HAL.
    18. Cahen-Fourot, Louison, 2020. "Contemporary capitalisms and their social relation to the environment," Ecological Economics, Elsevier, vol. 172(C).

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