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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. 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.
    2. repec:eee:ecolec:v:146:y:2018:i:c:p:228-239 is not listed on IDEAS
    3. Adam B. Barrett, 2017. "Stability of zero-growth economics analysed with a Minskyan model," Papers 1704.08161, arXiv.org, revised Nov 2017.
    4. Stefan Nabernegg & Birgit Bednar-Friedl & Pablo Munoz & Michaela Tietz & Johanna Vogel, 2018. "National policies for global emission reductions: Effectiveness of carbon emission reductions in international supply chains," Graz Economics Papers 2018-10, University of Graz, Department of Economics.
    5. repec:pal:compes:v:60:y:2018:i:1:d:10.1057_s41294-018-0055-7 is not listed on IDEAS
    6. Yoann Verger, 2018. "First steps for a Sraffian ecological economics. An answer to Martins' “The Classical Circular Economy, Sraffian Ecological Economics and the Capabilities Approach”," Working Papers hal-01700228, HAL.
    7. repec:lrk:eeaart:36_1_21 is not listed on IDEAS
    8. Asjad Naqvi & Engelbert Stockhammer, 2017. "Directed technological change in a post-Keynesian ecological macromodel," Working Papers PKWP1714, Post Keynesian Economics Society (PKES).
    9. 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).
    10. Nicolas Piluso & Edwin Le Héron, 2017. "La taxe carbone dans une économie d'inspiration keynésienne," Post-Print hal-01454866, HAL.

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