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"Modern western economies (in the Eurozone and elsewhere) face a number of challenges over the coming decades. Achieving full employment, meeting climate change and other key environmental targets, and reducing inequality rank amongst the highest of these. The conventional route to achieving these goals has been to pursue economic growth. But this route has created two critical problems for modern economies. The first is that higher growth leads (ceteris parabis) to higher environmental impact. The second is that fragility in financial balances has accompanied relentless demand expansion. The prevailing global response to the first problem has been to encourage a decoupling of output from impacts by investing in green technologies (green growth). But this response runs the risk of exacerbating problems associated with the over-leveraging of households, firms and governments and places undue confidence in unproven and imagined technologies. An alternative approach is to reduce the pace of growth and to restructure economies around green services (post-growth). But the potential dangers of declining growth rates lie in increased inequality and in rising unemployment. Some more fundamental arguments have also been made against the feasibility of interest-bearing debt within a post-growth economy. The work described in this paper was motivated by the need to address these fundamental dilemmas and to inform the debate that has emerged in recent years about the relative merits of green growth and post-growth scenarios. In pursuit of this aim we have developed a suite of macroeconomic models based on the methodology of Post-Keynesian Stock Flow Consistent (SFC) system dynamics. Taken together these models represent the first steps in constructing a new macroeconomic synthesis capable of exploring the economic and financial dimensions of an economy confronting resource or environmental constraints. Such an ecological macroeconomics includes an account of basic macroeconomic variables such as the GDP, consumption, investment, saving, public spending, employment, and productivity. It also accounts for the performance of the economy in terms of financial balances, net lending positions, money supply, distributional equity and financial stability. This report illustrates the utility of this new approach through a number of specific analyses and scenario explorations. These include an assessment of the Piketty hypothesis (that slow growth increases inequality), an analysis of the ‘growth imperative' hypothesis (that interest bearing debt requires economic growth for stability), and an analysis of the financial and monetary implications of green investment policies. The work also assesses the scope for fiscal policy to improve social and environmental outcomes."
"Modern western economies (in the Eurozone and elsewhere) face a number of challenges over the coming decades. Achieving full employment, meeting climate change and other key environmental targets, and reducing inequality rank amongst the highest of these. The conventional route to achieving these goals has been to pursue economic growth. But this route has created two critical problems for modern economies. The first is that higher growth leads ...

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Vienna

"In a highly globalised world where all production and consumption activities are internationally intertwined and the environmental consequences of those actions are hard to identify, rethinking the role of work in our societies according to sustainability principles is a complex but highly necessary task. Salaried work has become one of the crucial indicators to analyse any country in the world. By looking at the proportion of the population that is employed, the working conditions they have, and how productive they are when performing their tasks, it is possible to produce an image of a country's society to assist in the understanding of the levels of well-being of its citizens. Work and labour markets not only largely structure the way the economy and society function, they also heavily influence an individual's life satisfaction and happiness; virtually the entire life of a person is designed around their work. Given the relevance work has at all levels, diving into the concept of sustainable work is a crucial project due to the urgency of environmental matters. The biggest role humanity faces is how to transform our societies so that they are sustainable from a social, ecological and economic perspective. For the sustainable society vision, work would need to be drastically altered in order to adapt it to the multi-dimensional sustainability requirements. This research aims to contribute to this enterprise by identifying the conditions that define the sustainability of work and then present an overview of seven European countries from this perspective. The present document introduces our conceptualisation of work and explains its main components. These are designed around the idea of the sustainable society and are composed of individuals' needs, equity and planetary boundaries. The final section concludes and introduces the different country-case studies."
"In a highly globalised world where all production and consumption activities are internationally intertwined and the environmental consequences of those actions are hard to identify, rethinking the role of work in our societies according to sustainability principles is a complex but highly necessary task. Salaried work has become one of the crucial indicators to analyse any country in the world. By looking at the proportion of the population ...

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Vienna

"Collectively agreed reductions of working hours phased out in Europe in the 1990s. During the last two decades, working time became more flexible and heterogeneous. Working hours of full-time employees in the EU hardly changed. The strong increase in part-time work was the outstanding phenomenon. Today, one third of female employees and almost ten percent of male employees work part-time. In a period of slow growth, productivity gains will be squeezed by subdued investment and low capacity utilisation. Thus, a smaller pie will be available either for real wage increases or for working time reductions. In this situation, it will be politically even more difficult to find an agreement on shorter working hours than in past decades. Since the productivity and employment effects of a working time reduction in a low growth period are quite uncertain, social partners must be willing to negotiate again when the effects become apparent."
"Collectively agreed reductions of working hours phased out in Europe in the 1990s. During the last two decades, working time became more flexible and heterogeneous. Working hours of full-time employees in the EU hardly changed. The strong increase in part-time work was the outstanding phenomenon. Today, one third of female employees and almost ten percent of male employees work part-time. In a period of slow growth, productivity gains will be ...

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Vienna

"European integration was and is a success programme. It was possible to successfully cope with the challenges of globalisation, to perform better than the United States in international competition, defending the European model of social security and inclusion while keeping pace in terms of per capita growth, and the supranational concentration of bargaining power proved helpful with respect to multinationals as well as in international diplomacy. However, the inevitable lack of vision for the final state of the integration process disturbs the safety-oriented European public and impairs EU's image. There is a search for final, patent solutions based on traditional institutions and models. In this, one overlooks the fact that European integration is a systemic process and an experiment at the end of which something new will presumably have been created. The adaptation and the advancement of the specific European model, based on inalienable human rights (not the least for women), rule of law, separation of powers, freedom of religion, popular sovereignty and representative democracy is indispensable. It is not easy, given differences of assessment of values even with the United States, and the rejection of 'Western' values outside the Western World, in many cases even with considerable aggressiveness."
"European integration was and is a success programme. It was possible to successfully cope with the challenges of globalisation, to perform better than the United States in international competition, defending the European model of social security and inclusion while keeping pace in terms of per capita growth, and the supranational concentration of bargaining power proved helpful with respect to multinationals as well as in international ...

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Vienna

"The unusually rapid economic growth during the second quarter of the previous century led to a marked reduction of sustained exclusion and discrimination against groups of persons. However, in the 1980s and 1990s, growth rates in industrialised countries began to drop; the different types of real and, more importantly, perceived social exclusion once again increased and became socially critical. The economic policy of the EU and its member states has, however, not dealt systematically with the problem of exclusion, instead addressing it only in isolated, individual steps, with the main focus being efficiency and the bolstering of growth. This, however, cannot be expected to take place to such an extent that a “trickle down” effect would automatically reduce exclusion; there must be an active and innovative anti-exclusion policy. This report attempts to outline which problems have been neglected in the WWWforEurope concept, for which problems solutions have been proposed, and for which problems solutions still need to be worked out."
"The unusually rapid economic growth during the second quarter of the previous century led to a marked reduction of sustained exclusion and discrimination against groups of persons. However, in the 1980s and 1990s, growth rates in industrialised countries began to drop; the different types of real and, more importantly, perceived social exclusion once again increased and became socially critical. The economic policy of the EU and its member ...

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Vienna

"Why are civil society dynamics concerning green spaces across European cities so interesting for socio-ecological transition? All over Europe self-organized civil society movements are emerging to tackle local challenges, becoming active players in local governance processes. These social experiments have even been intensified as a result of tight public local budgets. Their activities contribute to the functioning and well-being of a European society aiming for sustainability. Preserving the availability of bio-diverse green spaces is crucial for the socio-ecological transition of cities since besides providing recreational opportunities for city dwellers, they yield essential ecological benefits from cleaning the air to reducing noise, but also provide habitat for many species and plants and reduce local vulnerabilities to extreme climate events. In cities in which local governments have severe difficulties in affording the provision of green space, new self-organized initiatives have emerged for maintaining and even developing them. Initiatives such as urban gardening have proven that people are able to cooperate, to organize themselves and to take over responsibility for green spaces as well as even introducing new practices that support the socio-ecological transition. This Milestone will contribute to the questions: -how can citizen groups contribute to maintain existing green spaces which are available and accessible for all and possibly being expanded whilst assuring biodiversity and allowing diverse use for local needs (re-creation, community-based food-production, neighbourhood culture, common intergenerational and intercultural learning etc.) at the same time; -which policy framework allows for a constructive collaboration between local authorities, administration, economic actors and citizens, enabling innovative solutions in the area of urban food production, green-space management and participative urban development."
"Why are civil society dynamics concerning green spaces across European cities so interesting for socio-ecological transition? All over Europe self-organized civil society movements are emerging to tackle local challenges, becoming active players in local governance processes. These social experiments have even been intensified as a result of tight public local budgets. Their activities contribute to the functioning and well-being of a European ...

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Vienna

"Socio-ecological transitions are a main project, current EU policies, national environmental politics, and regional as well as local action address. Manifold approaches exist and the European Union is anxious to coordinate and facilitate the process of a consolidated transition. Therefore, a policy paper is being developed, the European Urban Agenda, which operates on all govern-mental levels to allow cities more capability in realising said socio-ecological transition according to their own structural, spatial, social, economic, and environmental predispositions. In a broad study of 40 cities in Europe, we gathered a vast amount of empirical data that indicates the individual approaches towards a transition as well as their relations to European and national policies. This paper presents an extension of this research results. We depart from the results of the ROCSET study that is centred on the possibilities of self-organisation and ask about local sustainability strategies with concrete aims and goals. Further, the results of a consultation process on this European Urban Agenda are interpreted as an indicator on how the general perception of EU urban policies differs from actor to actor. Such an Agenda can con-tribute to unify individual approaches towards sustainability and consolidate strategies while maintaining the individuality of the local approaches. This paper starts with an outline of the research of the ROCSET study. In the second chapter, the actual urban sustainability strategies are reconstructed to take stock of the current situation in our forty researched cities. The third chapter analyses the consultation process on the European Urban Agenda that then can be taken as an indicator on what the expectations for such an agenda are, and how they might reflect currently existing urban strategies."
"Socio-ecological transitions are a main project, current EU policies, national environmental politics, and regional as well as local action address. Manifold approaches exist and the European Union is anxious to coordinate and facilitate the process of a consolidated transition. Therefore, a policy paper is being developed, the European Urban Agenda, which operates on all govern-mental levels to allow cities more capability in realising said ...

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Vienna

"So far, the economic case for gender equality and female empowerment has gained stronger attention in the case of developing countries where women have far less rights and opportunities compared to developed ones. Hence, the grounds supporting gender equality have been much stronger and much more researched in the former. In developed countries, although there are still large differences in labour force participation, income and power, there is at least a growing equality in opportunity, making it less easy to analyse the existing gender inequality in terms of restrictions which need to be lifted in order to reach a fair and efficient division of work. This paper offers a review of the literature on the economics of gender equality by way of organising it along three propositions and two questions. This way it is possible to combine very different strands of literature, ranging from rather formal explorations within theoretical micro-economics, to more empirically oriented macro-economic research on economic growth, and rather heterodox contributions from feminist economics, illustrating the richness of the debate and the different positions that can be taken."
"So far, the economic case for gender equality and female empowerment has gained stronger attention in the case of developing countries where women have far less rights and opportunities compared to developed ones. Hence, the grounds supporting gender equality have been much stronger and much more researched in the former. In developed countries, although there are still large differences in labour force participation, income and power, there is ...

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"Recent developments in the political, scientific and economic debate on the topic of the project proposal in Area 2: "The impact of ecological sustainability on growth and employment is investigated, as it will have important repercussions on econonmic policy and welfare, many of them not reflected in traditional GDP measures and in economic policy" suggest that it is of critical importance to develop and to use new approaches able to compare policy scenarios for their effectiveness, their efficiency, their enforceability and other dimensions. It is a urgent need for quantitative methodology able to assess the relative performance of different policy scenarios taking into account their long-term economic, social and environmental impacts. The methodology based on Data Envelopment Analysis (DEA) and Multi Criteria Analysis (MCA) provides a promising comparison framework. The objective of this part of research is not solely to discuss and comment on different scenario and policy outcomes provided by WP205, but to extract useful information from the phase where proposed and simulated policy scenarios are compared. In particular, we are interested in incorporating the economic, environmental and social dimensions of the positive and negative impacts of each policy scenario. As shown in the paper by Boseth-Buchner (2009) this methodology allows "to bridge the gap between the simulation phase, in which long-run efects of policies are mimicked, and the valuation phase, in which usually a coherent cost benefit analysis framework is adopted" (p. 1342). In difference to the standard application of DEA for the ex-post performance assessment in the proposed approach DEA can be used for ex-ante assessment of different policy scenarios. DEA models combined with MCA, in particular with Analytic Hierarchy Process (AHP) incorporating human judgements provides an useful instrument to analyse the impact of different policy preferences and strategies that appear to be crucial for the increasing well-being of the population. As a consequence, the proposed approach can provide a very beneficial contribution to the project as a whole and in particular to one of the central questions: "How can the EU guarantee a maximum well-being of its population?""
"Recent developments in the political, scientific and economic debate on the topic of the project proposal in Area 2: "The impact of ecological sustainability on growth and employment is investigated, as it will have important repercussions on econonmic policy and welfare, many of them not reflected in traditional GDP measures and in economic policy" suggest that it is of critical importance to develop and to use new approaches able to compare ...

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"The development of "green" industries is commonly seen as a necessary even though not sufficient condition for the transition towards ecologically sustainable paths of economic development. It is also a recurrent view that pro-active and successful policy action in this domain will not only promote sustainable development but also secure competitive advantage of successful countries in these industries. However, a complex constellation of path-dependencies in systems of production and (negative) externalities constrain the emergence and expansion of environmental technologies. This paper presents evidence that path-dependencies in systems of production have a dual role in the development of new industries. They are not only a source of structural lock-in, but also a potential starting point for new developments. The paper shows that factors causing path dependence in systems of production are also an important source of competitiveness both for all traded commodities and for environmental technology industries. Hence, policies supporting the emergence of industries producing environmental technologies should try to exploit this mechanism. Drawing on this evidence a counterfactual analysis is carried out to investigate potential trajectories of development of the EU28 countries in the environmental technologies. The results indicate that some countries that up to recent times have been pioneers in environmental technologies may lose their strong position in these technologies. In other countries instead new strengths in environmental technologies have the potential to emerge, as some environmental technologies can draw on untraded interdependencies that have not been brought to full fruition so far."
"The development of "green" industries is commonly seen as a necessary even though not sufficient condition for the transition towards ecologically sustainable paths of economic development. It is also a recurrent view that pro-active and successful policy action in this domain will not only promote sustainable development but also secure competitive advantage of successful countries in these industries. However, a complex constellation of ...

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