An Integrated Approach to Climate Change, Income Distribution,Employment, and Economic Growth*

A demand-driven growth model involving capital accumulation and the dynamics of greenhouse gas (GHG) concentration is set up to examine macroeconomic issues raised by global warming, e.g. effects on output and employment of rising levels of GHG; offsets by mitigation; relationships among energy use and labor productivity, income distribution, and growth; the economic significance of the Jevons and other paradoxes; sustainable consumption and possible reductions in employment; and sources of instability and cyclicality implicit in the two-dimensional dynamical system. The emphasis is on the combination of biophysical limits and Post-Keynesian growth theory and the qualitative patterns of system adjustment and the dynamics that emerge.

[1]  Reinhard Mechler,et al.  Ecological macroeconomics: An application to climate change , 2013 .

[2]  D. Foley,et al.  The social cost of carbon emissions: Seven propositions ✩ , 2013 .

[3]  W. Nordhaus.  A Question of Balance: Weighing the Options on Global Warming Policies , 2008 .

[4]  S. Stagl,et al.  Work-sharing for a sustainable economy , 2015 .

[5]  M. Kalecki.  Selected Essays on the Dynamics of the Capitalist Economy 1933-1970 , 1971 .

[6]  N. Kaldor.  A Model of Economic Growth , 1957 .

[7]  M. Laine.  Managing without Growth: Slower by Design, Not Disaster , 2011 .

[8]  J. Keynes,et al.  The General Theory of Employment, Interest and Money. , 1936 .

[9]  Emanuele Campiglio,et al.  Beyond carbon pricing: the role of banking and monetary policy in financing the transition to a low-carbon economy , 2015 .

[10]  R. Howarth,et al.  Economic growth, inequality, and well-being , 2016 .

[11]  D. Foley,et al.  Global warming and economic externalities , 2011, Economic Theory.

[12]  I. Røpke.  Complementary system perspectives in ecological macroeconomics — The example of transition investments during the crisis , 2016 .

[13]  Vaclav Smil,et al.  Energy at the Crossroads: Global Perspectives and Uncertainties , 2005 .

[14]  M. Sawyer,et al.  Towards post-Keynesian ecological macroeconomics , 2016 .

[15]  P. Victor.  Managing Without Growth: Slower by Design, Not Disaster , 2008 .

[16]  Rachel Schurman,et al.  Plenitude: The New Economics of True Wealth , 2011 .

[17]  P E Waggoner,et al.  A framework for sustainability science: A renovated IPAT identity , 2002, Proceedings of the National Academy of Sciences of the United States of America.

[18]  S. A. A. Naqvi.  Modeling Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework , 2015 .

[19]  M. Hirsch,et al.  Differential Equations, Dynamical Systems, and an Introduction to Chaos , 2003 .

[20]  R. Goodwin.  A Growth Cycle , 1982 .

[21]  A. Sen,et al.  Peasants and Dualism with or without Surplus Labor , 1966, Journal of Political Economy.

[22]  A. Rezai,et al.  Personal income inequality and aggregate demand , 2016 .

[23]  S. Sneeringer.  A Question of Balance: Weighing the Options on Global Warming Policies (review) , 2009 .

[24]  Tim Jackson,et al.  Does slow growth lead to rising inequality? Some theoretical reflections and numerical simulations , 2016 .

[25]  Duncan K. Foley,et al.  The Social Cost of Carbon Emissions , 2013 .