More from the macro modelling work at NEF... Giovanni and Giorgos here introduce some preliminary work on incorporating the environment into a model with finance. The presentation gets a little technical at points, but the blog describes whats going on: The model presented here shows, in a formal setting, the link between nef’s previous money creation model and the environment by introducing different types of energy consumption - renewable and non-renewable. This energy consumed is used in order to produce a given amount of output, and the amount of energy used depends on the energy-efficiency of the technology used. The amount of non-renewable energy used in production, in turn, provides a direct link to the volume of greenhouse gas emissions in the atmosphere. We have also introduced a government which is here able to invest in mitigation (to reduce the impact of greenhouse gas emissions) and is also able to impose rules on the commercial banks.
Posted on: Wed, 30 Oct 2013 10:54:45 +0000
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