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Ecological Macroeconomics: An application to climate change

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  • Rezai, Armon
  • Taylor, Lance
  • Mechler, Reinhard

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)

Suggested Citation

  • Rezai, Armon & Taylor, Lance & Mechler, Reinhard, 2012. "Ecological Macroeconomics: An application to climate change," SRE-Discussion Papers 2012/06, WU Vienna University of Economics and Business.
  • Handle: RePEc:wiw:wus009:3557
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    More about this item

    Keywords

    ecological macroeconomics; climate change; Umweltökonomie; Makroökonomie; Wirtschaftswachstum; Keynessche Theorie; Klimaänderung;
    All these keywords.

    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

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