Imperfect Markets and the Properties of Macro-economic-environmental Models as Tools for Policy Evaluation
Bernd Meyer and
Gerd Ahlert ()
Ecological Economics, 2019, vol. 155, issue C, 80-87
Economic-Environmental Models are deeply disaggregated macro-economic systems, which are used in economic environmental studies to explain the emissions of pollutions and the extraction of resources. Concerning the economic base two approaches can be differentiated – the neoclassical and the Keynesian paradigm. Models based on the neoclassical paradigm are depicting equilibrium of perfectly competitive markets, whereas the models based on the Keynesian paradigm have been developed from a critical position vis-a-vis neoclassical theory stressing the importance of market imperfections. The paper at hand shows in its theoretical part that this fundamental difference to a large extent is responsible for differences in modeling results concerning the impact of policy instruments on the economy and the environment. Furthermore the two paradigms prefer different ways of parameterization which has consequences for the empirical validation of the models, the construction of the references and the effects of environmental policy. The paper at hand further shows that the theoretical arguments allow explaining the totally different and partly opposite results of concrete policy simulations in the POLFREE project, where the large scale economic environmental models EXIOMOD (neoclassical) and GINFORS (Keynesian) have been used.
Keywords: Integrated Assessment Modeling; CGE Models; Macro-econometric models; Neoclassical theory; Keynesian theory (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Imperfect Markets and the Properties of Macro-Economic-Environmental Models as Tools for Policy Evaluation (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:155:y:2019:i:c:p:80-87
Access Statistics for this article
Ecological Economics is currently edited by C. J. Cleveland
More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Haili He ().