IDEAS home Printed from https://ideas.repec.org/a/bla/ausecp/v42y2003i1p118-134.html
   My bibliography  Save this article

Environmental Macroeconomics: Extending the IS–LM Model to Include an ‘Environmental Equilibrium’ Curve

Author

Listed:
  • Philip A. Lawn

Abstract

A decade has now passed since Daly made a plea for an environmental macroeconomics. Despite an expanding literature on “green” national accounting and the efforts of ecological economists to measure the sustainable net benefits of a growing macroeconomy, it is only recently that Daly's plea has been adequately answered. This has been achieved with the incorporation by Heyes of an “environmental equilibrium” or EE curve into the familiar IS–LM model. However, the IS–LM–EE model proposed by Heyes is incomplete. By extending Heyes’ model to include the role of technological progress and the need to institute policy instruments to ensure operation on the EE curve, this paper sends out a clear message that environmental concerns should be incorporated into macroeconomic models. They should not be solely confined to microeconomics.

Suggested Citation

  • Philip A. Lawn, 2003. "Environmental Macroeconomics: Extending the IS–LM Model to Include an ‘Environmental Equilibrium’ Curve," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 118-134, March.
    • Handle: RePEc:bla:ausecp:v:42:y:2003:i:1:p:118-134
    DOI: 10.1111/1467-8454.00190
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8454.00190
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8454.00190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Halkos, George & Paizanos, Epameinondas, 2015. "Effects of Macroeconomic Policy on Air Quality: Evidence from the US," MPRA Paper 62001, University Library of Munich, Germany.
    2. Combes, J.-L. & Combes Motel, P. & Minea, A. & Villieu, P., 2015. "Deforestation and seigniorage in developing countries: A tradeoff?," Ecological Economics, Elsevier, vol. 116(C), pages 220-230.
    3. Jean-François Fagnart & Marc Germain, 2014. "Macroéconomie du court terme et politique climatique : quelques leçons d'un modèle d'offre et demande globales," Recherches économiques de Louvain, De Boeck Université, vol. 80(1), pages 31-60.
    4. Jean-François Fagnart & Marc Germain, 2012. "Macro économie du court terme et politique climatique: Quelques leçons d'un modèle d'offre et demande globales," Working Papers hal-00992050, HAL.
    5. Halkos, George E. & Paizanos, Epameinondas Α., 2013. "The effect of government expenditure on the environment:An empirical investigation," Ecological Economics, Elsevier, vol. 91(C), pages 48-56.
    6. Armon Rezai & Sigrid Stagl, 2016. "Ecological Macreconomics: Introduction and Review," Ecological Economics Papers ieep9, Institute of Ecological Economics.
    7. Catalin Angelo Ioan & Gina Ioan, 2013. "A Mathematical Model of an Open Economy with Applications in Romania," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(5), pages 103-170, October.
    8. Jean-François FAGNART & Marc GERMAIN, 2012. "Macroéconomie du court terme et politique climatique : Quelques leçons d'un modèle d'offre et demande globales," LIDAM Discussion Papers IRES 2012021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    9. Hilde Patron & William J. Smith, 2016. "The Short-Term and Long-Term Trade-Offs of Sustainable Entrepreneurship," Journal for Economic Educators, Middle Tennessee State University, Business and Economic Research Center, vol. 16(1), pages 36-48, Fall.
    10. Catalin Angelo Ioan & Gina Ioan, 2013. "An Equilibrium Model for an Open Economy. Romania’s Case," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(1), pages 102-125, February.
    11. Jean-François FAGNART & Marc GERMAIN, 2017. "Quelques leçons d'un modèle de macroéconomie écologique à 2 périodes," LIDAM Discussion Papers IRES 2017009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:42:y:2003:i:1:p:118-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.