This paper presents a post-Keynesian ecological macro model that combines
three strands of literature: the directed technological change mechanism developed
in mainstream endogenous growth theory models, the ecological economic
literature which highlights the role of green innovation and material flows, and the post-Keynesian school which provides a framework to deal with the demand
side of the economy, financial flows, and inter- and intra-sectoral behavioral interactions. The model is stock-flow consistent and introduces research and
development (R&D) as a component of GDP funded by private firm investment and public expenditure. The economy uses three complimentary inputs - Labor, Capital, and (non-renewable) Resources. Input productivities depend on
R&D expenditures, which are determined by relative changes in their respective prices. Two policy experiments are tested; a Resource tax increase, and an increase
in the share of public R&D on Resources. Model results show that policy instruments that are continually increased over a long-time horizon have better chances of achieving a "green" transition than one-of climate policy shocks to
the system, that primarily have a short-run affect. / Series: Ecological Economic Papers
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5809 |
| Date | 18 December 2017 |
| Creators | Naqvi, Syed Ali Asjad, Engelbert, Stockhammer |
| Publisher | WU Vienna University of Economics and Business |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Paper, NonPeerReviewed |
| Format | application/pdf |
| Relation | https://www.wu.ac.at/en/ecolecon/institute/, http://epub.wu.ac.at/5809/ |
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