Dafermos, Yannis, Nikolaidi, Maria ORCID: 0000-0002-8188-5482 and Galanis, Giorgos (2016) A stock-flow-fund ecological macroeconomic model. Ecological Economics, 131. pp. 191-207. ISSN 0921-8009 (Print), 1873-6106 (Online) (doi:https://doi.org/10.1016/j.ecolecon.2016.08.013)

Preview	PDF (Publisher's PDF - Open Access) 15769 NIKOLAIDI_Stock-Flow-Fund_Ecological_Macroeconomic_Model_2016.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (1MB) | Preview
	PDF (Author's Accepted Manuscript) 15769_Nikolaidi_A stock flow fund (AAM) 2016.pdf - Accepted Version Restricted to Registered users only Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (1MB)
	PDF (Acceptance Letter) 15769_Nikolaidi_Acceptance letter 2016.pdf - Additional Metadata Restricted to Repository staff only Download (32kB)

Abstract

This paper develops a stock-flow-fund ecological macroeconomic model that combines the stock-flow consistent approach of Godley and Lavoie with the flow-fund model of Georgescu-Roegen. The model has the following key features. First, monetary and physical stocks and flows are explicitly formalised taking into account the accounting principles and the laws of thermodynamics. Second, Georgescu-Roegen’s distinction between stock-flow and fund-service resources is adopted. Third, output is demand-determined but supply constraints might arise either due to environmental damages or due to the exhaustion of natural resources. Fourth, climate change influences directly the components of aggregate demand. Fifth, finance affects macroeconomic activity and the materialisation of investment plans that determine ecological efficiency. The model is calibrated using global data. Simulations are conducted to investigate the trajectories of key environmental, macroeconomic and financial variables under (i) different assumptions about the sensitivity of economic activity to the leverage ratio of firms and (ii) different types of green finance policies.

Item Type:	Article
Additional Information:	© 2016 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Uncontrolled Keywords:	Ecological macroeconomics; stock-flow consistent modelling; laws of thermodynamics; climate change; finance
Subjects:	H Social Sciences > HA Statistics H Social Sciences > HF Commerce H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group:	Faculty of Business Faculty of Business > Department of International Business & Economics Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA) > Greenwich Political Economy Research Centre (GPERC)
Related URLs:	Publisher
Last Modified:	04 Aug 2021 16:33
URI:	http://gala.gre.ac.uk/id/eprint/15769

Actions (login required)

View Item

Downloads