Quotation Naqvi, Syed Ali Asjad, Stockhammer, Engelbert. 2017. Directed Technological Change in an Ecological Macromodel.


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Abstract

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 ows, and the post-Keynesian school which provides a framework to deal with the demand side of the economy, nancial ows, 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 rm 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-o climate policy shocks to the system, that primarily have a short-run affect.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Directed Technological Change in an Ecological Macromodel
Year 2017
URL http://epub.wu.ac.at/5809/

Associations

Projects
Sustainable Growth and Financial Markets
People
Naqvi, Syed Ali Asjad (Details)
External
Stockhammer, Engelbert (Kingston University, United Kingdom)
Organization
Institute for Ecological Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
1133 Computer-aided simulation (Details)
2928 Environmental economics (Details)
5323 Econometrics (Details)
5353 Environmental economics (Details)
5368 Sustainable development, sustainable economics (Details)
5924 Environmental economics (Details)
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