The sustainability transition and the digital transformation: two challenges for agent-based macroeconomic models

Marcello Nieddu (), Filippo Bertani () and Linda Ponta ()
Additional contact information
Marcello Nieddu: University of Genoa
Filippo Bertani: University of Genoa
Linda Ponta: LIUC - Cattaneo University

Review of Evolutionary Political Economy, 2022, vol. 3, issue 1, 193-226

Abstract: Abstract Digital transformation and sustainability transition are complex phenomena characterized by fundamental uncertainty. The potential consequences deriving from these processes are the subject of open debates among economists and policy-makers. In this respect, adopting a modeling and simulation approach represents one of the best solutions in order to study potential effects linked to these complex phenomena. Agent-based modeling represents an appropriate paradigm to address complexity. This research aims at showing the potential of the large-scale macroeconomic agent-based model Eurace in order to investigate challenges like sustainability transition and digital transformation. In particular, two different simulation studies, i.e., the digital transformation and the sustainability transition are presented, in order to show the potential of the Eurace model in addressing such kinds of complex phenomena. As regards the digital transformation, the Eurace model is able to capture interesting business dynamics characterizing the so-called increasing returns world and, in case of high rates of digital technological progress, it shows significant technological unemployment. As regards the sustainability transition, it displays a rebound effect on energy savings that compromises efforts to reduce greenhouse gas emissions via electricity efficiency improvements. Furthermore, it shows that a carbon tax could be not sufficient to decouple the economy from carbon consumption and that a feed-in tariff policy fostering renewable energy production growth may be more effective.

Keywords: Sustainability; Climate change mitigation policies; Digital Transformation; Technological unemployment; Agent-based modeling (search for similar items in EconPapers)
JEL-codes: C63 E24 Q01 Q42 Q43 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s43253-021-00060-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:revepe:v:3:y:2022:i:1:d:10.1007_s43253-021-00060-5

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43253

DOI: 10.1007/s43253-021-00060-5

Access Statistics for this article

Review of Evolutionary Political Economy is currently edited by Wolfram Elsner

More articles in Review of Evolutionary Political Economy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().