Social Measures of the Energy Transition and Dynamic Systems in Macroeconomics

Scientific project

The MeET MaDyS project (Measurements of the Energy Transition and Dynamic Macroeconomic Systems) has two scientific objectives. The first is to provide tools for macroeconomic modelling that take into account the most crucial dimensions of ecological transition, in a relevant and innovative way. The approach adopted takes into account the energy constraints of production and the influence of finance and currency as a means of public policy for the energy transition and the possibility of crisis, recession and involuntary unemployment. This is taken into account through stock-flow coherence modelling, the introduction of inter-complementarity of production factors, and dynamic systems theory. This theoretical development is intended to be applied to macroeconomic issues associated with the ecological transition. Can an appropriate investment policy be introduced? How may finance help or jeopardize the desired transition? What are the priority projects for best implementing this transition?

The second objective develops thinking on what the indicators of a successful transition and renewed prosperity should be. GDP growth, which is always associated with an increase in energy and material consumption, may not be a relevant criterion for success. Renewed debates on inequalities prompt us to think about and adopt alternative criteria of prosperity, resilience and progress. The second axis of this project thus develops a programme for the construction of alternative indicators of growth that are relevant for the energy transition, together with methodological considerations as to the linkage of these indicators in the models developed in the first axis.