Abstract
This paper presents a post-Keynesian ecological macromodel, which is stock-flow consistent, and incorporates directed technological change. Private and public R&D spending across three competing, yet complementary inputs – Labor, Capital, and Resources – follow a portfolio allocation decision, where inputs with relatively higher growth in costs, see higher R&D investment and productivity gains. Two policy experiments are reported; a market-based Resource tax increase, and a centralized green policy, where public R&D budget is shifted towards Resource-saving technologies. We highlight that in the presence of labor market institutions, which give rise to hysteresis, and limited R&D budgets, a policy of continuous Resource tax growth is needed to induce Resource-saving technological change to achieve a greener economy. This needs to be coupled with planned government spending adjustment to spur demand and boost investment. The findings also suggest that a mix of market-based and centralized policies may be optimal.
Originalsprache | Englisch |
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Seiten (von - bis) | 168 - 188 |
Fachzeitschrift | Ecological Economics |
Jahrgang | 154 |
DOIs | |
Publikationsstatus | Veröffentlicht - 2018 |
Österreichische Systematik der Wissenschaftszweige (ÖFOS)
- 102009 Computersimulation
- 502042 Umweltökonomie
- 502025 Ökonometrie
- 502022 Nachhaltiges Wirtschaften