Title (en)
Achieving absolute decoupling? Comparing biophysical scenarios and macro-economic modelling results
Language
English
Description (en)
WWWforEurope Working Paper No. 86, 23 pages
Most economic models struggle to incorporate biophysical relationships between materials, energy and emissions, in order to appropriately deal with biophysical constraints of supply (and possibly also demand). After the incorporation of biophysical constraints, some functions produced surprising or even highly implausible results. These results have been checked against expert judgement of plausibility, some biophysical assumptions have been refomulated or removed to secure consistency, and some economic functions have been adjusted to take care of adequacy and plausibility of outcomes and model specifications. A number of efforts were made to check the consistency of economic modelling outcomes with some fundamental functional interdependencies on the biophysical level and against the biophysical scenarios presented in earlier papers (Milestones MS35 - published as WWWforEurope Working Paper no. 25; and MS36 - unpublished). This usually required extensive communication between research teams and the re-formulation of certain parameters, relationships and semi-empirical assumptions. Methodologically, such interdisciplinary cross-checking is a novel and time-consuming exercise. This process highlights the limitations of existing economic models to incorporate certain biophysical functional interdependencies, and vice versa the still very limited ability of biophysical models to explore ranges of flexibility imposed upon changing economic assumptions. Furthermore this ongoing collaboration showed that the specification of the baseline scenario and the semi-empirical assumptions about efficiency gains as well as developments of factor productivity and technical change are highly influential on the results of each scenario. Therefore a 'realistic' specification and critical reflection of the actual feasability of certain baseline trajectories is deemed necessary.
Keywords (en)
Beyond GDPBiophysical constraintsCGE modelsEcological innovationEconomic growth pathEconomic strategyEuropean economic policyFull employment growth pathIndustrial policyInnovation policyMacroeconomic disequilibriaMarket economy with adjectivesSocio-ecological transitionSustainable growthWealth
HTTP/WWW
http://www.foreurope.eu
Author of the digital object
Dominik Wiedenhofer
Author of the digital object
Marina Fischer-Kowalski
Publisher
WWWforEurope
Judge
Daniel Müller
OpenAIRE Version Type
publishedVersion
Format
application/pdf
OpenAIRE Access Rights
openAccess
Dewey Decimal Classification
Macroeconomics & related topics
European Projects
Socio-economic sciences and the humanities
Type of publication
Working Paper
European Union (all programmes)
290647
Publication Date
2015-02-25
- Citable links
Persistent identifier
https://phaidra.univie.ac.at/o:409294 - Other links
URL
http://www.foreurope.eu - Content
- Details
- This object is in collection
- Metadata
- Export formats