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Finding common ground between ecological economics and post-Keynesian economics

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  • Kronenberg, Tobias

Abstract

Post-Keynesian economics and ecological economics have in common that they are considered to be 'heterodox' schools of thought. Aside from that, there has not been a strong connection between them. Previous books on post-Keynesian economics contain no chapter on environmental or ecological issues. This neglect has led leading ecological economists to criticize post-Keynesians for succumbing to the same growth paradigm as the neoclassical school. This paper argues that the two approaches are complementary in the sense that they each have different strong points. Ecological economics has correctly pointed out that the growth of the global economy may not be welfare-improving anymore, whereas post-Keynesians have gained valuable insights into the functioning of the capitalist growth process. To determine the feasibility of a synthesis between the two schools, the paper compares their approaches to the problems of production, consumption, and economic dynamics as well as the associated policy recommendations. It shows that on a theoretical level the two schools have much in common, but their policy conclusions differ with regard to the desirability of further growth. The paper concludes that a synthesis of both approaches may lead to a better understanding of how a capitalist economy operates in a natural environment with limits to growth and to better-informed policy advice.

Suggested Citation

  • Kronenberg, Tobias, 2010. "Finding common ground between ecological economics and post-Keynesian economics," Ecological Economics, Elsevier, vol. 69(7), pages 1488-1494, May.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:7:p:1488-1494
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    Cited by:

    1. Muhammad Zia Ullah Khan & Muhammad Illyas & Muqqadas Rahman & Chaudhary Abdul Rahman, 2015. "Money Monetization and Economic Growth in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 184-192, April.
    2. Kemp-Benedict, Eric, 2013. "Resource Return on Investment under Markup Pricing," MPRA Paper 49154, University Library of Munich, Germany.
    3. repec:elg:ejeepi:v:14:y:2017:i:2:p131-172 is not listed on IDEAS
    4. S. Scrieciu & Zaid Chalabi, 2014. "Climate policy planning and development impact assessment," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 19(3), pages 255-260, March.
    5. repec:feu:wfeppr:y:2014:m:11:d:0:i:18 is not listed on IDEAS
    6. Muhammad Zia Ullah Khan & Chaudhary Abdul Rahman, 2015. "Money, Monetization and Economic Growth in Pakistan," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 95-104, March.
    7. repec:wfo:wstudy:57883 is not listed on IDEAS
    8. Remig, Moritz C., 2017. "Structured pluralism in ecological economics — A reply to Peter Söderbaum's commentary," Ecological Economics, Elsevier, vol. 131(C), pages 533-537.
    9. Rezai, Armon & Taylor, Lance & Mechler, Reinhard, 2013. "Ecological macroeconomics: An application to climate change," Ecological Economics, Elsevier, vol. 85(C), pages 69-76.
    10. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2017. "A stock-flow-fund ecological macroeconomic model," Ecological Economics, Elsevier, vol. 131(C), pages 191-207.
    11. Yoann Verger, 2015. "Sraffa and ecological economics: review of the literature," Working Papers hal-01182894, HAL.
    12. Lynne Chester & Joy Paton, 2013. "The economic–environment relation: can post-Keynesians, Régulationists and Polanyians offer insights?," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 10(1), pages 106-121.
    13. Rezai, Armon & Taylor, Lance & Mechler, Reinhard, 2012. "Ecological Macroeconomics: An application to climate change," SRE-Discussion Papers 3557, WU Vienna University of Economics and Business.
    14. Eckhard Hein, 2017. "Post-Keynesian macroeconomics since the mid 1990s: main developments," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 14(2), pages 131-172, September.
    15. Asjad Naqvi & Engelbert Stockhammer, 2017. "Directed technological change in a post-Keynesian ecological macromodel," Working Papers PKWP1714, Post Keynesian Economics Society (PKES).
    16. Naqvi, Syed Ali Asjad, 2015. "Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework," Ecological Economic Papers 4468, WU Vienna University of Economics and Business.
    17. Kronenberg, Tobias, 2010. "Dematerialisation of consumption: a win-win strategy?," MPRA Paper 25704, University Library of Munich, Germany.
    18. Guarini, Giulio & Porcile, Gabriel, 2016. "Sustainability in a post-Keynesian growth model for an open economy," Ecological Economics, Elsevier, vol. 126(C), pages 14-22.
    19. Richters, Oliver & Siemoneit, Andreas, 2016. "Consistency and stability analysis of models of a monetary growth imperative," VÖÖ Discussion Papers 1/2016, Vereinigung für Ökologische Ökonomie e.V. (VÖÖ).
    20. Fontana, Giuseppe & Sawyer, Malcolm, 2016. "Towards post-Keynesian ecological macroeconomics," Ecological Economics, Elsevier, vol. 121(C), pages 186-195.
    21. Kemp-Benedict, Eric, 2014. "The inverted pyramid: A neo-Ricardian view on the economy–environment relationship," Ecological Economics, Elsevier, vol. 107(C), pages 230-241.
    22. Rezai, Armon & Stagl, Sigrid, 2016. "Ecological Macreconomics: Introduction and Review," Ecological Economic Papers 4803, WU Vienna University of Economics and Business.
    23. Richters, Oliver & Siemoneit, Andreas, 2017. "Consistency and stability analysis of models of a monetary growth imperative," Ecological Economics, Elsevier, vol. 136(C), pages 114-125.
    24. Hardt, Lukas & O'Neill, Daniel W., 2017. "Ecological Macroeconomic Models: Assessing Current Developments," Ecological Economics, Elsevier, vol. 134(C), pages 198-211.

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