The role of interest in the unsustainability of growth: analytical findings using an accounting model
Электронный научный архив УРФУ
Информация об архиве | Просмотр оригинала| Поле | Значение | |
| Заглавие |
The role of interest in the unsustainability of growth: analytical findings using an accounting model
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| Автор |
van, den, Bergh, J.
Savin, I. |
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| Тематика |
ENVIRONMENT
INTEREST LIMITS TO GROWTH POST-GROWTH STEADY-STATE ECONOMY |
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| Описание |
In the context of the long-standing debate on growth-versus-environment, notably the possibility that serious environmental policies will slow down growth, the question has been raised if interest can be compatible with zero growth. We develop a simple accounting model that describes the value added of the financial sector being positively associated with interest income. This allows us to derive formally that interest is compatible with zero growth for both simple and compound interest. The findings indicate that on its own, interest or compound interest does not add to the growth of gross domestic product (GDP). What matters instead is whether savings–be it from interest or other income–are invested productively or not. In other words, the condition for non-growth is that interest income is either directly spent by the creditor or indirectly by the debtor, rather than being invested in capital expansion, education, or innovation. Such investments would result in a more productive economy generating economic growth. These findings generalize, and add transparency to, previous studies which used more complicated models involving particular theoretical assumptions about the functioning of the macroeconomy. © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
Ministerio de Ciencia e Innovación, MICINN: CEX2019-000940-M; Horizon 2020: 882314 This work was supported by Horizon 2020 [882314]. This work contributes to the “María de Maeztu” Programme for Units of Excellence of the Spanish Ministry of Science and Innovation (CEX2019-000940-M). We are grateful to Tilman Hartley, Giorgos Kallis, and an anonymous reviewer of this article for discussions and comments which helped us considerably improve the model and refine the findings. This work contributes to the “María de Maeztu” Programme for Units of Excellence of the Spanish Ministry of Science and Innovation (CEX2019-000940-M). We are grateful to Tilman Hartley, Giorgos Kallis, and an anonymous reviewer of this article for discussions and comments which helped us considerably improve the model and refine the findings. |
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| Дата |
2024-04-05T16:34:37Z
2024-04-05T16:34:37Z 2023 |
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| Тип |
Article
Journal article (info:eu-repo/semantics/article) |info:eu-repo/semantics/publishedVersion |
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| Идентификатор |
Van Den Bergh, J & Savin, I 2023, 'The role of interest in the unsustainability of growth: analytical findings using an accounting model', Sustainability: Science, Practice and Policy, Том. 19, № 1, 2262830. https://doi.org/10.1080/15487733.2023.2262830
Van Den Bergh, J., & Savin, I. (2023). The role of interest in the unsustainability of growth: analytical findings using an accounting model. Sustainability: Science, Practice and Policy, 19(1), [2262830]. https://doi.org/10.1080/15487733.2023.2262830 1548-7733 Final All Open Access, Gold https://www.scopus.com/inward/record.uri?eid=2-s2.0-85174221812&doi=10.1080%2f15487733.2023.2262830&partnerID=40&md5=fd1a38f80268ee3dada1acf88a4f1cb1 https://www.tandfonline.com/doi/pdf/10.1080/15487733.2023.2262830?needAccess=true http://elar.urfu.ru/handle/10995/130864 10.1080/15487733.2023.2262830 85174221812 001084214900001 |
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| Язык |
en
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| Права |
Open access (info:eu-repo/semantics/openAccess)
cc-by-nc https://creativecommons.org/licenses/by-nc/4.0/ |
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| Формат |
application/pdf
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| Издатель |
Taylor and Francis Ltd.
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| Источник |
Sustainability: Science, Practice and Policy
Sustainability: Science, Practice, and Policy |
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