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Abstract Economic-Environmental Models are deeply disaggregated macro-economic systems, which are used in economic environmental studies to explain the emissions of pollutions and the extraction of resources. Concerning the economic base two approaches can be differentiated – the neoclassical and the Keynesian paradigm. Models based on the neoclassical paradigm are depicting equilibrium of perfectly competitive markets, whereas the models based on the Keynesian paradigm have been developed from a critical position vis-a-vis neoclassical theory stressing the importance of market imperfections. The paper at hand shows in its theoretical part that this fundamental difference to a large extent is responsible for differences in modeling results concerning the impact of policy instruments on the economy and the environment. Furthermore the two paradigms prefer different ways of parameterization which has consequences for the empirical validation of the models, the construction of the references and the effects of environmental policy. The paper at hand further shows that the theoretical arguments allow explaining the totally different and partly opposite results of concrete policy simulations in the POLFREE project, where the large scale economic environmental models EXIOMOD (neoclassical) and GINFORS (Keynesian) have been used. [ABSTRACT FROM AUTHOR]

Abstract: Policy prescriptions for sustainable consumption have been dominated by neoclassical economics, which is built around the notions of market equilibrium, utility maximization, and exogenous preferences. There are concerns that neoclassical economics is inadequate to guide policy prescriptions in the presence of evolving preferences and complex dynamics. Evolutionary economics provides a more realistic account of individual behavior underlying economic processes. It offers a framework for studying complex socio-economic interactions and exploring their properties. As a consequence, it may offer a better approach for the analysis of policies aimed at inducing fundamental changes in behaviors, technologies and institutions in the direction of increased sustainability. However, a coherent evolutionary-economic approach to economic policies has been missing so far. In particular, policy criteria for evaluating evolutionary outcomes and processes are ambiguous. The paper discusses the implications of employing the evolutionary-economic approaches to study sustainable consumption and policy from different ethical standpoints. [Copyright &y& Elsevier]