This book sheds new light on the relationship between economy and the environment by approaching the issue from evolutionary and institutional economics. Building a framework of theory and empirical analysis, it provides an in-depth perspective on how economic growth and environmental policy interact and historically evolve. Orthodox environmental economics usually understands environmental issues under the rules of market economy, while environmental sciences subordinate economy to physical constraints of the environment. Instead of these hierarchical visions, this book recognizes economy and the environment as co-evolving systems. The theoretical framework is elaborated based on the régulation and post-Keynesian theories combined. An idea of three-dimensional factors—capital, labor, and the environment—leads to conceptual and mathematical models, which will be applicable to wider analyses. Using this framework, Japanese history is analyzed as a typical example of environmental policy development. Historical transformations of environmental policies and growth regimes are explained using indices and econometric analysis. Experiences of strict regulations with positive economic impacts are also identified. These works lead to some interesting implications, which include mechanisms, the possibility, and conditions of "green growth''. This book proposes a new approach by bridging the gap between evolutionary–institutional economics and environmental economics, which should be stimulating to them both and possibly open the door for a new research avenue.

Offers an evolutionary economics perspective on energy and innovation policies in the wider context of the transition to sustainable development. This work also includes an analysis of the environmental policy implications of evolutionary economics; and a critical examination of Dutch environmental and innovation policies and policy documents.

This book focuses on modelling in ecological economics and offers a comprehensive overview of current and emerging methods of applying mathematical, computational and conceptual methods to environmental issues. Following a detailed introduction, the authors investigate various modelling techniques including: * evolutionary modelling * input-output modelling * neo-Austrian modelling * entropy in ecological economics * thermodynamic models * multi-criteria evaluation * agent-based modelling * the environmental Kuznets curve.

This book describes the principles of integrated assessment models (IAM) for climate change economics and introduces various computable models for different development mechanisms under climate change governance. The authors present several new models they have constructed based on the RICE framework, specifically the MRICES((multi-factor RICE)) and EMRICES models, which incorporate global economic interactions into the RICE framework, and the CINCIA model, which describes technological advances and industrial structure evolution, introducing the mechanism of evolutionary economics. The models discussed in the book help governments and policy-makers tackle climate change and take positive measures on climate governance as well as promote economic and social development to narrow the gaps between countries.

Long-run interactions between the economy and the natural environment are studied from all points of view. First, the aims of this overview are illustrated in Part I. Part II then explores and develops the concept of evolution, in particular distinguishing between evolution which does not involve the emergence of novelty, and evolution where novelty does occur. In Part III three types of time irreversibility are developed, and these concepts are used to show how time has been treated in the natural sciences, also typifying various schools of economic thought. Part IV is concerned with the economic modelling of these concepts. It extends and adapts neo-Austrian capital theory to provide a basis for the modelling of long-run economy-environment interactions. A heuristic simulation model is described, and its simulation results discussed. Part V draws some lessons from the earlier discussion and analysis. It also stresses the role and the importance of interdisciplinary work for the understanding of relationships between economic activity and the natural environment.

Exploiting econometric techniques aimed at dealing with the dynamics of economic systems and the heterogeneity of agents performances, the volume integrates innovation-based reasoning with ex-post analyses, and presents ex-ante analyses able to evaluate the role of climate change policies by using computable general equilibrium models such as the Global Trade Analysis Project for Energy (GTAP-E). The authors merge and use a range of datasets, including OECD-PATSTAT and STAN, to test novel techniques informed by evolutionary economic theories and the Porter hypothesis. The immediate relevance and applicability of the models will strengthen the hand of policy analysts for whom the dynamic efficiency of environmental policy is a new, high-profile evaluation criterion.

The subject of this volume is the human economy and its coevolutionary relationship with the natural world. This relationship is examined in three broad types of societies; hunter--gatherers, agriculturalists, and modern market economies. A growing body of scientific evidence has made it clear that the current human impact on the environment is far above the level that can be maintained without causing profound changes in the biophysical world to which we belong. The new fields of ecological economics and evolutionary economics can help us understand the relationship between the economy, society and the environment and may help us to formulate effective policies to manage these changes.

Ecological economics seeks to socially construct a political economics which will deal successfully with environmental problems and make the individual more visible in economic analysis. The author describes the principles, strategies and instruments of social change for key players - governmental agencies, business corporations, environmental and religious organizations and universities - and underlines their responsibilities in the market economy. Peter Soderbaum emphasizes the need to articulate ideologies, worldviews, ethics and related scientific perspectives as part of economics, and the importance of pluralism and democratic decision making. His account of the theories and means that will brings us closer to a sustainable society consider tools such as environmental impact assessment (EIA) and describes success indicators such as environmental labelling and environmental management systems (EMS). It highlights strategies and policies that facilitate social change and sets out future agendas for the individual actors in political economics.

This book contains the most sustained and serious attack on mainstream, neoclassical economics in more than forty years. Richard R. Nelson and Sidney G. Winter focus their critique on the basic question of how firms and industries change overtime. They marshal significant objections to the fundamental neoclassical assumptions of profit maximization and market equilibrium, which they find ineffective in the analysis of technological innovation and the dynamics of competition among firms. To replace these assumptions, they borrow from biology the concept of natural selection to construct a precise and detailed evolutionary theory of business behavior. They grant that films are motivated by profit and engage in search for ways of improving profits, but they do not consider them to be profit maximizing. Likewise, they emphasize the tendency for the more profitable firms to drive the less profitable ones out of business, but they do not focus their analysis on hypothetical states of industry equilibrium. The results of their new paradigm and analytical framework are impressive. Not only have they been able to develop more coherent and powerful models of competitive firm dynamics under conditions of growth and technological change, but their approach is compatible with findings in psychology and other social sciences. Finally, their work has important implications for welfare economics and for government policy toward industry.