Quotation Naqvi, Syed Ali Asjad, Stockhammer, Engelbert. 2018. Directed Technological Change in a Post-Keynesian Ecological Macromodel. Ecological Economics. 154 168-188.


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Abstract

This paper presents a post-Keynesian ecological macromodel, which is stock-flow consistent, and incorporates directed technological change. Private and public R&D spending across three competing, yet complementary inputs – Labor, Capital, and Resources – follow a portfolio allocation decision, where inputs with relatively higher growth in costs, see higher R&D investment and productivity gains. Two policy experiments are reported; a market-based Resource tax increase, and a centralized green policy, where public R&D budget is shifted towards Resource-saving technologies. We highlight that in the presence of labor market institutions, which give rise to hysteresis, and limited R&D budgets, a policy of continuous Resource tax growth is needed to induce Resource-saving technological change to achieve a greener economy. This needs to be coupled with planned government spending adjustment to spur demand and boost investment. The findings also suggest that a mix of market-based and centralized policies may be optimal.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Ecological Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-C, WH-B
Language English
Title Directed Technological Change in a Post-Keynesian Ecological Macromodel
Volume 154
Year 2018
Page from 168
Page to 188
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0921800917311771
DOI https://doi.org/10.1016/j.ecolecon.2018.07.008
Open Access N

Associations

People
Naqvi, Syed Ali Asjad (Details)
External
Stockhammer, Engelbert (King's College London, United Kingdom)
Organization
Institute for Ecological Economics IN (Details)
Research areas (ÖSTAT 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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