IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwsre/sre-disc-2012_06.html
   My bibliography  Save this paper

Ecological Macroeconomics: An application to climate change

Author

Listed:
  • Armon Rezai
  • Lance Taylor
  • Reinhard Mechler

Abstract

Ecological Economics has not paid sufficient attention to the macroeconomic level both in terms of theory and modelling. Yet, key topics debated in the field of Ecological Economics such as sustainable consumption, reduction in working time, the degrowth debate, the energy-exergy link, and the rebound effect require a wholistic and macro perspective. While this deficiency has been identified before and Keynesian economics has been generally suggested as a potent vehicle to establish economic system's thinking, very little concrete theorizing and practical suggestions have been put forward. We give further credence to this suggestion and demonstrate the value of tackling key concerns of Ecological Economics within a Keynesian growth framework. Contextualized by an application to climate change we suggest that policy relevant recommendations need to be based on a consistent view of the macroeconomy. We end with laying out key building blocks for a Keynesian model framework for an Ecological Macroeconomics. (author's abstract)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Armon Rezai & Lance Taylor & Reinhard Mechler, 2012. "Ecological Macroeconomics: An application to climate change," SRE-Disc sre-disc-2012_06, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
  • Handle: RePEc:wiw:wiwsre:sre-disc-2012_06
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/sre-disc/sre-disc-2012_06.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thorstein Veblen, 1899. "Mr. Cummings's Strictures on "The Theory of the Leisure Class"," Journal of Political Economy, University of Chicago Press, vol. 8, pages 106-106.
    2. Jonathan M. Harris & Neva R. Goodwin (ed.), 2003. "New Thinking in Macroeconomics," Books, Edward Elgar Publishing, number 3113.
    3. Jonathan Harris, "undated". "Ecological Macroeconomics: Consumption, Investment, and Climate Change," GDAE Working Papers 08-02, GDAE, Tufts University.
    4. Norgaard, Richard B., 1989. "The case for methodological pluralism," Ecological Economics, Elsevier, vol. 1(1), pages 37-57, February.
    5. Jonathan M. Harris & Neva R. Goodwin (ed.), 2009. "Twenty-First Century Macroeconomics," Books, Edward Elgar Publishing, number 13112.
    6. Frank Ackerman, 2008. "Climate Economics in Four Easy Pieces," Development, Palgrave Macmillan;Society for International Deveopment, vol. 51(3), pages 325-331, September.
    7. Jonathan M. Harris & Neva R. Goodwin, "undated". "Reconciling Growth and Environment," GDAE Working Papers 03-03, GDAE, Tufts University.
    8. Kronenberg, Tobias, 2010. "Finding common ground between ecological economics and post-Keynesian economics," Ecological Economics, Elsevier, vol. 69(7), pages 1488-1494, May.
    9. Saunders, Harry D., 2000. "A view from the macro side: rebound, backfire, and Khazzoom-Brookes," Energy Policy, Elsevier, vol. 28(6-7), pages 439-449, June.
    10. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    11. Spash, Clive L. & Schandl, Heinz, 2009. "Growth, the Environment and Keynes: Reflections on Two Heterodox Schools of Thought," MPRA Paper 102542, University Library of Munich, Germany.
    12. 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.
    13. Anthoff, David & Tol, Richard S.J., 2010. "On international equity weights and national decision making on climate change," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 14-20, July.
    14. Victor, Peter A. & Rosenbluth, Gideon, 2007. "Managing without growth," Ecological Economics, Elsevier, vol. 61(2-3), pages 492-504, March.
    15. Kronenberg, Tobias, 2010. "Dematerialisation of consumption: a win-win strategy?," MPRA Paper 25704, University Library of Munich, Germany.
    16. Taylor, Lance, 1985. "A Stagnationist Model of Economic Growth," Cambridge Journal of Economics, Oxford University Press, vol. 9(4), pages 383-403, December.
    17. Martin L. Weitzman, 2009. "On Modeling and Interpreting the Economics of Catastrophic Climate Change," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 1-19, February.
    18. Veblen, Thorstein, 1899. "The Theory of the Leisure Class," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1899.
    19. Victor, Peter A., 2012. "Growth, degrowth and climate change: A scenario analysis," Ecological Economics, Elsevier, vol. 84(C), pages 206-212.
    20. Helmut Haberl & Marina Fischer‐Kowalski & Fridolin Krausmann & Joan Martinez‐Alier & Verena Winiwarter, 2011. "A socio‐metabolic transition towards sustainability? Challenges for another Great Transformation," Sustainable Development, John Wiley & Sons, Ltd., vol. 19(1), pages 1-14, January/F.
    21. Taylor, Lance & Lysy, Frank J., 1979. "Vanishing income redistributions : Keynesian clues about model surprises in the short run," Journal of Development Economics, Elsevier, vol. 6(1), pages 11-29, February.
    22. Dutt, Amitava Krishna, 1984. "Stagnation, Income Distribution and Monopoly Power," Cambridge Journal of Economics, Oxford University Press, vol. 8(1), pages 25-40, March.
    23. Martínez-Alier, Joan & Pascual, Unai & Vivien, Franck-Dominique & Zaccai, Edwin, 2010. "Sustainable de-growth: Mapping the context, criticisms and future prospects of an emergent paradigm," Ecological Economics, Elsevier, vol. 69(9), pages 1741-1747, July.
    24. Terry Barker and S. Serban Scrieciu, 2010. "Modeling Low Climate Stabilization with E3MG: Towards a 'New Economics' Approach to Simulating Energy-Environment-Economy System Dynamics," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    25. Daly, Herman E., 1997. "Georgescu-Roegen versus Solow/Stiglitz," Ecological Economics, Elsevier, vol. 22(3), pages 261-266, September.
    26. Ackerman, Frank & Stanton, Elizabeth A. & Bueno, Ramón, 2010. "Fat tails, exponents, extreme uncertainty: Simulating catastrophe in DICE," Ecological Economics, Elsevier, vol. 69(8), pages 1657-1665, June.
    27. Daiju Narita & Richard Tol & David Anthoff, 2010. "Economic costs of extratropical storms under climate change: an application of FUND," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(3), pages 371-384.
    28. Syrquin, Moshe, 1988. "Patterns of structural change," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 7, pages 203-273, Elsevier.
    29. Terry Barker & Annela Anger & Unnada Chewpreecha & Hector Pollitt, 2012. "A new economics approach to modelling policies to achieve global 2020 targets for climate stabilisation," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(2), pages 205-221, October.
    30. Kallis, Giorgos, 2011. "In defence of degrowth," Ecological Economics, Elsevier, vol. 70(5), pages 873-880, March.
    31. Gowdy, John M., 1991. "Bioeconomics and post Keynesian economics: a search for common ground," Ecological Economics, Elsevier, vol. 3(1), pages 77-87, March.
    32. Armon Rezai & Duncan Foley & Lance Taylor, 2012. "Global warming and economic externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(2), pages 329-351, February.
    33. Duncan K Foley, 2012. "Dilemmas of Economic Growth," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 38(3), pages 283-295.
    34. Spash, Clive L., 2007. "The economics of climate change impacts a la Stern: Novel and nuanced or rhetorically restricted?," Ecological Economics, Elsevier, vol. 63(4), pages 706-713, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rezai, Armon & Stagl, Sigrid, 2016. "Ecological Macreconomics: Introduction and Review," Ecological Economic Papers 9, WU Vienna University of Economics and Business.
    2. Hardt, Lukas & O'Neill, Daniel W., 2017. "Ecological Macroeconomic Models: Assessing Current Developments," Ecological Economics, Elsevier, vol. 134(C), pages 198-211.
    3. Antoine Monserand, 2019. "Degrowth in a neo-Kaleckian model of growth and distribution? A theoretical compatibility and stability analysis," Working Papers hal-02012632, HAL.
    4. Antoine Monserand, 2019. "Degrowth in a neo-Kaleckian model of growth and distribution? A theoretical compatibility and stability analysis," CEPN Working Papers 2019-01, Centre d'Economie de l'Université de Paris Nord.
    5. 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.
    6. Mario Larch & Markus Löning & Joschka Wanner, 2017. "Can Degrowth Overcome the Leakage Problem of Unilateral Climate Policy?," CESifo Working Paper Series 6633, CESifo.
    7. Bernardo, Giovanni & D'Alessandro, Simone, 2014. "Transition to sustainability? Feasible scenarios towards a low-carbon economy," MPRA Paper 53746, University Library of Munich, Germany.
    8. Larch, Mario & Löning, Markus & Wanner, Joschka, 2018. "Can degrowth overcome the leakage problem of unilateral climate policy?," Ecological Economics, Elsevier, vol. 152(C), pages 118-130.
    9. Dafermos, Yannis & Nikolaidi, Maria & Galanis, Giorgos, 2017. "A stock-flow-fund ecological macroeconomic model," Ecological Economics, Elsevier, vol. 131(C), pages 191-207.
    10. Richard S. J. Tol, 2021. "Estimates of the social cost of carbon have not changed over time," Papers 2105.03656, arXiv.org.
    11. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    12. Kronenberg, Tobias, 2010. "Dematerialisation of consumption: a win-win strategy?," MPRA Paper 25704, University Library of Munich, Germany.
    13. Antoine Monserand, 2019. "Degrowth in a neo-Kaleckian model of growth and distribution? A theoretical compatibility and stability analysis," CEPN Working Papers hal-02012632, HAL.
    14. Bachner, G. & Mayer, J. & Steininger, K.W. & Anger-Kraavi, A. & Smith, A. & Barker, T.S., 2020. "Uncertainties in macroeconomic assessments of low-carbon transition pathways - The case of the European iron and steel industry," Ecological Economics, Elsevier, vol. 172(C).
    15. Asjad Naqvi, 2015. "Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework. WWWforEurope Policy Paper No. 18," WIFO Studies, WIFO, number 57883, January.
    16. Naqvi, Syed Ali Asjad, 2015. "Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework," Ecological Economic Papers 2, WU Vienna University of Economics and Business.
    17. Richard S J Tol, 2018. "The Economic Impacts of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 12(1), pages 4-25.
    18. Malmaeus, J. Mikael & Alfredsson, Eva C., 2017. "Potential Consequences on the Economy of Low or No Growth - Short and Long Term Perspectives," Ecological Economics, Elsevier, vol. 134(C), pages 57-64.
    19. Clive L. Spash, 2013. "The Ecological Economics of Boulding's Spaceship Earth," SRE-Disc sre-disc-2013_02, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    20. Urhammer, Emil & Røpke, Inge, 2013. "Macroeconomic narratives in a world of crises: An analysis of stories about solving the system crisis," Ecological Economics, Elsevier, vol. 96(C), pages 62-70.

    More about this item

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    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:wiwsre:sre-disc-2012_06. 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: . General contact details of provider: http://www.wu-wien.ac.at/mlgd/ .

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.wu-wien.ac.at/mlgd/ .

    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.