Environmental Macroeconomics: Extending the IS–LM Model to Include an ‘Environmental Equilibrium’ Curve

Philip A. Lawn

Australian Economic Papers, 2003, vol. 42, issue 1, 118-134

Abstract: A decade has now passed since Daly made a plea for an environmental macroeconomics. Despite an expanding literature on “green” national accounting and the efforts of ecological economists to measure the sustainable net benefits of a growing macroeconomy, it is only recently that Daly's plea has been adequately answered. This has been achieved with the incorporation by Heyes of an “environmental equilibrium” or EE curve into the familiar IS–LM model. However, the IS–LM–EE model proposed by Heyes is incomplete. By extending Heyes’ model to include the role of technological progress and the need to institute policy instruments to ensure operation on the EE curve, this paper sends out a clear message that environmental concerns should be incorporated into macroeconomic models. They should not be solely confined to microeconomics.

Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://doi.org/10.1111/1467-8454.00190

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:42:y:2003:i:1:p:118-134

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().