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Attitudes Toward Climate Policies in a Macrodynamic Model of the Economy

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  • Marwil J. Dávila-Fernández

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  • Serena Sordi

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Abstract

In a recent article published in Ecological Economics, Guarini and Porcile (2016) expanded the Balance-of-Payments Constraint (BoPC) growth model in order to address the challenges posed by greenhouse gas emissions suggesting a way in which environmental variables can be included in the structure of this family of models. Building on their set up, we incorporate how people with di¤erent environmental attitudes or sentiments influence each other and contribute to the design of environmental policies. We detail the concept of transition probabilities for the agent's switching from pro- to anti-enviromental positions and vice-versa and discuss the macroeconomic results that follow. Numerical simulations allow us to investigate in more detail the implications of the validity of Porter's hypothesis as well as decoupling conditions.

Suggested Citation

  • Marwil J. Dávila-Fernández & Serena Sordi, 2018. "Attitudes Toward Climate Policies in a Macrodynamic Model of the Economy," Department of Economics University of Siena 784, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:784
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    Cited by:

    1. Dávila-Fernández, Marwil J. & Sordi, Serena, 2020. "Structural change in a growing open economy: Attitudes and institutions in Latin America and Asia," Economic Modelling, Elsevier, vol. 91(C), pages 358-385.
    2. Marwil J. Dávila-Fernández & Serena Sordi, 2019. "From open economies to attitudes towards change. Growth and institutions in Latin America and Asia," Department of Economics University of Siena 809, Department of Economics, University of Siena.

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    More about this item

    Keywords

    Sustainability; Open economy; Environmental innovation; Porter's hypothesis; Thirwall's Law.;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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