A service provided by the WU Library and the WU IT-Services

Directed Technological Change in a post-Keynesian Ecological Macromodel

Naqvi, Syed Ali Asjad and Engelbert, Stockhammer (2017) Directed Technological Change in a post-Keynesian Ecological Macromodel. Ecological Economic Papers, 16. WU Vienna University of Economics and Business, Vienna.

[img]
Preview
PDF
Download (1287Kb) | Preview

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 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 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-off climate policy shocks to the system, that primarily have a short-run affect.

Item Type: Paper
Additional Information: The paper has been generously supported by funds of the Oesterreichische Nationalbank (Austrias central bank, Anniversary Fund, project number: 16762)
Keywords: directed technological change, research and development, green transition, ecological economics,post- keynesian ecomomics, stock-flow consistency
Divisions: Departments > Sozioökonomie > Ecological Economics
Depositing User: Karin Lagger
Date Deposited: 13 Oct 2017 09:59
Last Modified: 19 Oct 2017 10:06
URI: http://epub.wu.ac.at/id/eprint/5809

Actions

View Item