IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwiee/ieep9.html
   My bibliography  Save this paper

Ecological Macreconomics: Introduction and Review

Author

Listed:
  • Armon Rezai

    () (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria)

  • Sigrid Stagl

    () (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria)

Abstract

The Great Recession of the past years has brought macroeconomics back. Many of the recession's phenomena, causes and consequences alike, cannot be understood using solely microeconomic decisionmaking. Over the past decades the economics profession has pursued the implications of rational choices and enshrined them in so-called "micro foundations" as a hallmark of modern economic theory. By focusing on the choices and actions of individual consumers, firms, or the government, however, one can easily miss important determinants of the economic system which only arise at the meso- or the macroeconomic levels where institutions, coordination, and complexity in general are important and sometimes even can take on a life of their own. To lesser extent, ecological economics has fallen prone to similar pitfalls by mostly focusing the unit of investigation on low-level, small-scale subsystems of the economy. There are, of course, notable exceptions including the early contributors Boulding and Georgescu-Roegen and the general interest of ecological economists in the field of (ecological) macroeconomics has been increasing.

Suggested Citation

  • Armon Rezai & Sigrid Stagl, 2016. "Ecological Macreconomics: Introduction and Review," Ecological Economics Papers ieep9, Institute of Ecological Economics.
  • Handle: RePEc:wiw:wiwiee:ieep9
    Note: PDF-Document
    as

    Download full text from publisher

    File URL: http://epub.wu.ac.at/4803/1/EcolEcon_WorkingPaper_2016_9.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Giorgos Kallis & Michael Kalush & Hugh O.'Flynn & Jack Rossiter & Nicholas Ashford, 2013. "“Friday off”: Reducing Working Hours in Europe," Sustainability, MDPI, Open Access Journal, vol. 5(4), pages 1-23, April.
    2. Steinberger, Julia K. & Roberts, J. Timmons, 2010. "From constraint to sufficiency: The decoupling of energy and carbon from human needs, 1975-2005," Ecological Economics, Elsevier, vol. 70(2), pages 425-433, December.
    3. Rezai, Armon & Taylor, Lance & Mechler, Reinhard, 2013. "Ecological macroeconomics: An application to climate change," Ecological Economics, Elsevier, vol. 85(C), pages 69-76.
    4. Campiglio, Emanuele, 2016. "Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy," Ecological Economics, Elsevier, vol. 121(C), pages 220-230.
    5. William D. Nordhaus & James Tobin, 1973. "Is Growth Obsolete?," NBER Chapters,in: The Measurement of Economic and Social Performance, pages 509-564 National Bureau of Economic Research, Inc.
      • William D. Nordhaus & James Tobin, 1972. "Is Growth Obsolete?," NBER Chapters,in: Economic Research: Retrospect and Prospect, Volume 5, Economic Growth, pages 1-80 National Bureau of Economic Research, Inc.
    6. Philip A. Lawn, 2003. "Environmental Macroeconomics: Extending the IS-LM Model to Include an 'Environmental Equilibrium' Curve," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 118-134, March.
    7. Fontana, Giuseppe & Sawyer, Malcolm, 2016. "Towards post-Keynesian ecological macroeconomics," Ecological Economics, Elsevier, vol. 121(C), pages 186-195.
    8. Howarth, Richard B. & Kennedy, Kevin, 2016. "Economic growth, inequality, and well-being," Ecological Economics, Elsevier, vol. 121(C), pages 231-236.
    9. Taylor, Lance & Rezai, Armon & Foley, Duncan K., 2016. "An integrated approach to climate change, income distribution, employment, and economic growth," Ecological Economics, Elsevier, vol. 121(C), pages 196-205.
    10. Giovanni Bernardo & Emanuele Campiglio, 2014. "A simple model of income, aggregate demand and the process of credit creation by private banks," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(3), pages 381-405, August.
    11. Kubiszewski, Ida & Costanza, Robert & Franco, Carol & Lawn, Philip & Talberth, John & Jackson, Tim & Aylmer, Camille, 2013. "Beyond GDP: Measuring and achieving global genuine progress," Ecological Economics, Elsevier, vol. 93(C), pages 57-68.
    12. repec:wsi:ccexxx:v:05:y:2014:i:01:n:s2010007814400053 is not listed on IDEAS
    13. Jonathan M. Harris, "undated". "01-09 "Macroeconomic Policy and Sustainability"," GDAE Working Papers 01-09, GDAE, Tufts University.
    14. John Gowdy & Jon D. Erickson, 2005. "The approach of ecological economics," Cambridge Journal of Economics, Oxford University Press, vol. 29(2), pages 207-222, March.
    15. Seyfang, Gill & Longhurst, Noel, 2013. "Growing green money? Mapping community currencies for sustainable development," Ecological Economics, Elsevier, vol. 86(C), pages 65-77.
    16. 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.
    17. Zwickl, Klara & Disslbacher, Franziska & Stagl, Sigrid, 2016. "Work-sharing for a sustainable economy," Ecological Economics, Elsevier, vol. 121(C), pages 246-253.
    18. 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.
    19. Jackson, Tim & Marks, Nic, 1999. "Consumption, sustainable welfare and human needs--with reference to UK expenditure patterns between 1954 and 1994," Ecological Economics, Elsevier, vol. 28(3), pages 421-441, March.
    20. Bhaduri, Amit & Marglin, Stephen, 1990. "Unemployment and the Real Wage: The Economic Basis for Contesting Political Ideologies," Cambridge Journal of Economics, Oxford University Press, vol. 14(4), pages 375-393, December.
    21. Stockhammer, Engelbert & Hochreiter, Harald & Obermayr, Bernhard & Steiner, Klaus, 1997. "The index of sustainable economic welfare (ISEW) as an alternative to GDP in measuring economic welfare. The results of the Austrian (revised) ISEW calculation 1955-1992," Ecological Economics, Elsevier, vol. 21(1), pages 19-34, April.
    22. Victor, Peter A. & Rosenbluth, Gideon, 2007. "Managing without growth," Ecological Economics, Elsevier, vol. 61(2-3), pages 492-504, March.
    23. Taylor, Lance, 1985. "A Stagnationist Model of Economic Growth," Cambridge Journal of Economics, Oxford University Press, vol. 9(4), pages 383-403, December.
    24. Douthwaite, Richard, 2012. "Degrowth and the supply of money in an energy-scarce world," Ecological Economics, Elsevier, vol. 84(C), pages 187-193.
    25. Victor, Peter A., 2012. "Growth, degrowth and climate change: A scenario analysis," Ecological Economics, Elsevier, vol. 84(C), pages 206-212.
    26. Dutt, Amitava Krishna, 1984. "Stagnation, Income Distribution and Monopoly Power," Cambridge Journal of Economics, Oxford University Press, vol. 8(1), pages 25-40, March.
    27. Richard P.F. Holt & Steven Pressman & Clive L. Spash (ed.), 2009. "Post Keynesian and Ecological Economics," Books, Edward Elgar Publishing, number 12988.
    28. Alex Bowen & Emanuele Campiglio & Massimo Tavoni, 2014. "A Macroeconomic Perspective On Climate Change Mitigation: Meeting The Financing Challenge," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-35.
    29. Laura Carvalho & Armon Rezai, 2016. "Personal income inequality and aggregate demand," Cambridge Journal of Economics, Oxford University Press, vol. 40(2), pages 491-505.
    30. R. M. Solow, 1974. "Intergenerational Equity and Exhaustible Resources," Review of Economic Studies, Oxford University Press, vol. 41(5), pages 29-45.
    31. Joseph Stiglitz, 1974. "Growth with Exhaustible Natural Resources: Efficient and Optimal Growth Paths," Review of Economic Studies, Oxford University Press, vol. 41(5), pages 123-137.
    32. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," Review of Economic Studies, Oxford University Press, vol. 41(5), pages 3-28.
    33. Lawn, Philip A., 2001. "Scale, prices, and biophysical assessments," Ecological Economics, Elsevier, vol. 38(3), pages 369-382, September.
    34. Gowdy, John M., 1991. "Bioeconomics and post Keynesian economics: a search for common ground," Ecological Economics, Elsevier, vol. 3(1), pages 77-87, March.
    35. Sim, Nicholas C.S., 2006. "Environmental Keynesian macroeconomics: Some further discussion," Ecological Economics, Elsevier, vol. 59(4), pages 401-405, October.
    36. Jackson, Tim & Victor, Peter A., 2016. "Does slow growth lead to rising inequality? Some theoretical reflections and numerical simulations," Ecological Economics, Elsevier, vol. 121(C), pages 206-219.
    37. Castaneda, Beatriz E., 1999. "An index of sustainable economic welfare (ISEW) for Chile," Ecological Economics, Elsevier, vol. 28(2), pages 231-244, February.
    38. Dittmer, Kristofer, 2015. "100 percent reserve banking: A critical review of green perspectives," Ecological Economics, Elsevier, vol. 109(C), pages 9-16.
    39. Jackson, Tim & Victor, Peter A., 2015. "Does credit create a ‘growth imperative’? A quasi-stationary economy with interest-bearing debt," Ecological Economics, Elsevier, vol. 120(C), pages 32-48.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:ecolec:v:148:y:2018:i:c:p:15-21 is not listed on IDEAS
    2. repec:elg:ejeepi:v:14:y:2017:i:2:p131-172 is not listed on IDEAS
    3. repec:eee:ecolec:v:146:y:2018:i:c:p:228-239 is not listed on IDEAS
    4. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    5. Adam B. Barrett, 2017. "Stability of zero-growth economics analysed with a Minskyan model," Papers 1704.08161, arXiv.org, revised Nov 2017.
    6. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2017. "A stock-flow-fund ecological macroeconomic model," Ecological Economics, Elsevier, vol. 131(C), pages 191-207.
    7. repec:eee:ecolec:v:144:y:2018:i:c:p:228-243 is not listed on IDEAS
    8. 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.
    9. repec:eee:ecolec:v:149:y:2018:i:c:p:239-253 is not listed on IDEAS
    10. Asjad Naqvi & Engelbert Stockhammer, 2017. "Directed technological change in a post-Keynesian ecological macromodel," Working Papers PKWP1714, Post Keynesian Economics Society (PKES).
    11. Michel Aglietta & Etienne Espagne, 2016. "Climate and finance systemic risks, more than an analogy? The climate fragility hypothesis," Working Papers 2016-10, CEPII research center.
    12. 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).
    13. repec:eee:ecolec:v:147:y:2018:i:c:p:383-398 is not listed on IDEAS
    14. Ponta, Linda & Raberto, Marco & Teglio, Andrea & Cincotti, Silvano, 2018. "An Agent-based Stock-flow Consistent Model of the Sustainable Transition in the Energy Sector," Ecological Economics, Elsevier, vol. 145(C), pages 274-300.
    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. Pirgmaier, Elke, 2017. "The Neoclassical Trojan Horse of Steady-State Economics," Ecological Economics, Elsevier, vol. 133(C), pages 52-61.
    17. Nicolas Piluso & Edwin Le Héron, 2017. "La taxe carbone dans une économie d'inspiration keynésienne," Post-Print hal-01454866, HAL.
    18. 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.
    19. repec:eee:ecolec:v:146:y:2018:i:c:p:164-172 is not listed on IDEAS
    20. Hardt, Lukas & O'Neill, Daniel W., 2017. "Ecological Macroeconomic Models: Assessing Current Developments," Ecological Economics, Elsevier, vol. 134(C), pages 198-211.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwiee:ieep9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karin Lagger). General contact details of provider: http://www.wu.ac.at/ecolecon/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.