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Growth, the Environment and Keynes: Reflections on Two Heterodox Schools of Thought

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  • Clive L Spash
  • Heinz Schandl

    (CSIRO Sustainable Ecosystems, Australia)

Abstract

This paper explores the approach of Post Keynesian Economics (PKE) in comparison with ecological economics. While PKE, like all macroeconomics, has failed to address environmental problems it does have many aspects which make compatibility with ecological economics seem feasible. Ecological economics has no specific macroeconomic approach although it has strong implications for economic growth and how this should be controlled, directed and in materials terms limited. We highlight growth as the key area of difference and reflect upon how Keynes himself saw capital accumulation as a means to an end not an end in itself, regarded it as a temporary measure and also was well aware of some of its psychological and social drawbacks.

Suggested Citation

  • Clive L Spash & Heinz Schandl, 2009. "Growth, the Environment and Keynes: Reflections on Two Heterodox Schools of Thought," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-01, CSIRO Sustainable Ecosystems.
    • Handle: RePEc:cse:wpaper:2009-01
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    Cited by:

    1. Kronenberg, Tobias, 2010. "Finding common ground between ecological economics and post-Keynesian economics," Ecological Economics, Elsevier, vol. 69(7), pages 1488-1494, May.
    2. Bernardo Cantone & Alexander S. Antonarakis & Andreas Antoniades, 2021. "The great stagnation and environmental sustainability: A multidimensional perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(3), pages 485-503, May.
    3. Rezai, Armon & Stagl, Sigrid, 2016. "Ecological Macreconomics: Introduction and Review," Ecological Economic Papers 9, WU Vienna University of Economics and Business.
    4. Rezai, Armon & Taylor, Lance & Mechler, Reinhard, 2013. "Ecological macroeconomics: An application to climate change," Ecological Economics, Elsevier, vol. 85(C), pages 69-76.
    5. Patrizia Ghisellini & Renato Passaro & Sergio Ulgiati, 2021. "Revisiting Keynes in the Light of the Transition to Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 143-171, June.
    6. Spash, Clive L. & Ryan, Anthony M., 2010. "Ecological, Heterodox and Neoclassical Economics: Investigating the Differences," MPRA Paper 26292, University Library of Munich, Germany.
    7. Bina, Olivia & La Camera, Francesco, 2011. "Promise and shortcomings of a green turn in recent policy responses to the “double crisis”," Ecological Economics, Elsevier, vol. 70(12), pages 2308-2316.
    8. 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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    More about this item

    Keywords

    environment; Keynes; post keynesian; ecological economics;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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