Post-Keynesian consumer-led transition

This research paper introduces a long-run post-Keynesian, demand-led macroeconomic model designed to analyze the effects of transitioning to a low-carbon economy on employment, growth, and stability.

• The paper utilizes a post-Keynesian model to examine how pursuing the Paris climate targets may lead to significant shifts in employment, production, and consumption. The model is characterized as demand-led, featuring household consumption inertia and firms that possess significant, though not absolute, ability to set prices.
• The model generates long waves and business cycles that are propelled by technological change. The research specifically analyzes a "downshifting" scenario where households voluntarily reduce their labor supply, comparing the results for stability, growth, and employment against scenarios where consumption is reduced without a corresponding withdrawal from the labor pool.

APA

Stockholm Environment Institute (2018). Post-Keynesian consumer-led transition. https://www.sei.org/publications/post-keynesian-consumer-led-transition/

Chicago

Stockholm Environment Institute. Post-Keynesian consumer-led transition. 2018. https://www.sei.org/publications/post-keynesian-consumer-led-transition/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Post-Keynesian consumer-led transition |date=10 January 2018 |url=https://www.sei.org/publications/post-keynesian-consumer-led-transition/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2018postkeynesian, author = {{Stockholm Environment Institute}}, title = {{Post-Keynesian consumer-led transition}}, institution = {Stockholm Environment Institute}, year = {2018}, month = jan, url = {https://www.sei.org/publications/post-keynesian-consumer-led-transition/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }