Quotation Naqvi, Syed Ali Asjad. 2015. Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework. Ecological Economics Working Paper Series 2/2015.


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Abstract

Economic policy in the EU faces a trilemma of solving three challenges simultaneously - growth, distribution, and the environment. In order to assess policies that address these issues simultaneously, economic models need to account for both sector-sector and sector-environment feedbacks within a single framework.This paper presents a multi-sectoral stock-flow consistent (SFC) macro model where a demand-driven economy consisting of multiple institutional sectors - firms, energy, households, government, and financial - interacts with the environment. The model is calibrated for the EU region and five policy scenarios are evaluated; low consumption, a capital stock damage function, carbon taxes, higher share of renewable energy, and technological shocks to productivity. Policy outcomes are tracked on overall output, unemployment, income and income distributions, energy, and emission levels. Results show that investment in mitigation technologies allows for absolute decoupling and ensures that the above three issues can be solved simultaneously.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework
Title of whole publication Ecological Economics Working Paper Series 2/2015
Year 2015
URL http://epub.wu.ac.at/id/eprint/4468

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Naqvi, Syed Ali Asjad (Details)
Organization
Institute for Ecological Economics IN (Details)
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