Economic Growth, Income Distribution, and Climate Change
By Armon Rezai, L. Taylor, Duncan K. Foley. 2018
115 citations recorded by the source corpus.
We present a model based on Keynesian aggregate demand and labor productivity growth to study how climate damage affects the long-run evolution of the economy. Climate change induced by greenhouse gas lowers profitability, reducing investment and cutting output in the short and long runs. Short-run employment falls due to deficient demand. In the long run productivity growth is slower, lowering potential income levels. Climate policy can increase incomes and employment in the short and long runs while a continuation of business-as-usual leads to a dystopian income distribution with affluence for few and high levels of unemployment for the rest.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/9be02c208e452797e27dda0d8a9ea28695e86e21
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Renewable Energy, Sustainability and the Environment
Citations in the corpus
- Coping With Collapse: A Stock-Flow Consistent Monetary Macrodynamics of Global Warming (2018, background): “…for instance, Barrett (2018); Dafermos et al. (2017); Dietz and Stern (2015); Jackson (2009); Nordhaus and Sztorc (2013); Rezai and Stagl (2016); Rezai et al. (2018, 2013)—, we present an integrated ecological macroeconomic model that combines two sources of instability: (i) global warming and…”