Directed Technological Change in a post-Keynesian Ecological Macromodel

Asjad Naqvi () and Engelbert Stockhammer ()
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Engelbert Stockhammer: Kingston University Dept. of Economics Penrhyn Road Kingston upon Thames Surrey KT1 2EE UK

Ecological Economics Papers from Institute of Ecological Economics

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.

Keywords: directed technological change; research and development; green transition; ecological economics; post- keynesian ecomomics; stock-flow consistency (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-cta, nep-env and nep-ino
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Related works:
Journal Article: Directed Technological Change in a Post-Keynesian Ecological Macromodel (2018)
Working Paper: Directed technological change in a post-Keynesian ecological macromodel (2017)
Working Paper: Directed Technological Change in a post-Keynesian Ecological Macromodel (2017)
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