A Stock-Flow Ecological Model from a Latin American Perspective

Lorenzo Nalin, Giuliano Toshiro Yajima, Leonardo Rojas Rodriguez, Esteban Perez-Caldentey and Jose Eduardo Alatorre

Economics Working Paper Archive from Levy Economics Institute

Abstract: This study aims to develop an ecological stock-flow consistent (SFC) model based on the Latin American-stylized facts regarding economic, financial, and environmental features. We combine the macro-financial theoretical framework by Perez-Caldentey et al. (2021, 2023) and the ecological modeling of Carnevali et al. (2020) and Dafermos et al. (2018). We discuss two scenarios that test exogenous climate-related shocks. The first scenario presents the case in which international regulation on commodity trade becomes more stringent due to environmental concerns, thus worsening the balance-of-payment constraint of the region. The second scenario concerns the increase in frequency and intensity of adverse climate events in the region. Both scenarios show that the financial external constraint that determines the growth path of Latin American economies may be further exacerbated due to environmental-related issues.

Keywords: Climate Change; Energy Transition; Stock Flow Models; Latin America (search for similar items in EconPapers)
JEL-codes: E12 Q43 Q54 (search for similar items in EconPapers)
Date: 2023-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.levyinstitute.org/wp-content/uploads/2024/02/wp_1031.pdf (application/pdf)

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:lev:wrkpap:wp_1031

Access Statistics for this paper

More papers in Economics Working Paper Archive from Levy Economics Institute
Bibliographic data for series maintained by Lindsey Carter ().