Macroeconomic Modelling of Sustainable Development and the Links between the Economy and the Environment

  • Project no.3338
  • Duration 12/2010 - 12/2011

In cooperation with Gesellschaft für Wirtschaftliche Strukturforschung mbH, Cambridge Econometrics and the Sustainable Europe Research Institute this project incorporates detailed analyses regarding current trends and risks for the future use of resources in Europe. At first the past and current resource use in Europe will be assessed using a material flow accounting (MFA) methodology. After that, an overview on market failures will be given, before conducting analyses on current trends and risks regarding future resource use. Furthermore, a resource abatement cost curve will be estimated in order to develop an understanding for the reduction potential of resource use in Europe. With the help of E3ME and GINFORS modelling, scenarios will be built which explain possible implications of the reduction of resource use on welfare, competitiveness, stability, employment and environment among others. Finally, the results will be formulated as policy recommendations and disseminated at a conference in Brussels.

Core questions of the MacMod are as follows:

  • How important are different types of natural resources to the EU economy now?
  • How does European resource use look like in a business as usual scenario?
  • Is such a business as usual scenario possible from the perspective of resource scarcities and increased competition over global resources?
  • Which policy measures and instruments support the goal of sustainable EU resource management?
  • What are the implications for the European economy, competitiveness and the environment?

The Wuppertal Institute provides sectoral TMR data, analysis on various market failures regarding resource use, and policy options.

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