EconPapers    
Economics at your fingertips  
 

Endogenous Economic Growth, Climate Change and Societal Values: A Conceptual Model

Michael W. M. Roos ()
Additional contact information
Michael W. M. Roos: Ruhr-Universität Bochum

Computational Economics, 2018, vol. 52, issue 3, 995-1028

Abstract: Abstract In this paper, I propose an evolutionary model that is an alternative to conventional models of growth and the environment. Global economic growth, the evolution of the human population, $$\hbox {CO}_{2}$$ CO 2 emissions, and the state of the environment are endogenous. Societal values are the main driver of all economic variables. They determine the different types of investment, the level of aggregate consumption and employment. Societal values evolve over time in response to economic and environmental conditions. The model is applied to generate possible scenarios for the twenty-first century. A baseline calibration generates an average global GDP growth rate of 3.6% p.a. and a global population level of 11.2 billion people in 2100. Mean global temperate in 2100 will be $$1.77\,{^{\circ }}\hbox {C}$$ 1.77 ∘ C higher than in 1995. These results are probably too optimistic. Sensitivity analyses show how these outcomes depend on various parameters. If values respond to environmental conditions only, global warming would reach $$2.5\,{^{\circ }}\hbox {C}$$ 2.5 ∘ C and a lower impact of investment in carbon efficiency could lead to average temperature increase by $$4.8\,{^{\circ }}\hbox {C}$$ 4.8 ∘ C . The model is a novel conceptual framework that can be extended in many dimensions.

Keywords: Endogenous growth; Societal values; Climate change; Environment; System dynamics; Evolutionary economics; Post-materialism (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10614-017-9707-3 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:kap:compec:v:52:y:2018:i:3:d:10.1007_s10614-017-9707-3

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10614/PS2

Access Statistics for this article

Computational Economics is currently edited by Hans Amman

More articles in Computational Economics from Springer, Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-15
Handle: RePEc:kap:compec:v:52:y:2018:i:3:d:10.1007_s10614-017-9707-3