Environmental Keynesian macroeconomics: Some further discussion

Abstract

This paper extends the IS-LM-EE framework first formulated by Heyes (Heyes, A., 2000. A proposal for the greening of textbook macro: 'IS-LM-EE'. Ecol. Econ. 32, 1-7). In his model, exogenous fiscal or monetary shocks are needed so that the intersection of all three schedules is reached. Such independent adjustments are circumvented in this paper, which argues that a naturally adjusting process exists and formalizes this mechanism for the IS-LM-EE framework. © 2005 Elsevier B.V. All rights reserved.