Ecological macroeconomics: a methodological review

Beatriz Macchione Saes,Ademar Ribeiro Romeiro

doi:10.1590/1982-3533.2019v28n2art04

Beatriz Macchione Saes, Ademar Ribeiro Romeiro

Open Access

https://doi.org/10.1590/1982-3533.2019v28n2art04

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Abstract

Abstract The paper aims to analyse and provide an overview of the emerging ecological macroeconomic approach from a methodological point of view. As with ecological economics, this emerging approach is being constituted by a methodologically plural set of studies. We identify and classify three main macroeconomic strands developed from ecological economic concerns. Firstly, we present the conventional macroeconomic IS-LM model adapted to a sustainable scale of production. Secondly, we discuss a fundamentalist post-Keynesian view on ecological economics that criticises the use of models more heavily. Finally, we describe the attempts to build ecological macroeconomic models based on the post-Keynesian approach. For each model, theories, methods, and assumptions are discussed and evaluated in light of ecological economic foundations. We conclude by reinforcing the role of methodological criticism in the consolidation of relevant ecological macroeconomics.

Highlights

There is a growing awareness that we are experiencing a triple environmental, social and economic crisis (e.g. Schneider et al, 2010; Røpke, 2016)
By assuming that social and economic reality contains a large variety of unique situations and uncertainties, post-Keynesianism and ecological economics are possibly consistent with some methodological pluralism
We could argue that “diversity, which is just another term for pluralism, only leads to growth if it is accompanied by criticism” (Caldwell, 1989, p. 56)

Summary

Introduction

There is a growing awareness that we are experiencing a triple environmental, social and economic crisis (e.g. Schneider et al, 2010; Røpke, 2016). 141) claims “that new ecological macroeconomics is essential but possible” and that one starting point is “to relax the presumption of perpetual consumption growth as the only possible basis for stability.” Jackson and Victor Recently, Rezai and Stagl (2016) presented an ecological macroeconomic review in the editorial for a special edition on the subject (Ecological Economics, 2016). Ecological macroeconomics: a methodological review including the development of new welfare indicators. Hardt and O’Neill (2017) provided a narrower review in their analysis of ecological macroeconomic models and their capability to assess policies proposed for a “post-growth” economy. We take a different perspective by focusing on methodological choices behind these models instead of proposed policies or economic subjects. Authors that could be included in this perspective are James O’Connor, Elmar Altvater, John Bellamy Foster and David Harvey

Methodological considerations: pluralism in ecological macroeconomics?

Biophysical limits in “mainstream” ecological macroeconomics

From system thinking to complex post-Keynesian ecological macro dynamics

Concluding remarks