The Evolving Relationship Between Economy And Environment: Theory And The Japanese Experience (evolutionary Economics And Social Complexity Science)

This book sheds new light on the relationship between economy and the environment by approaching the issue from evolutionary and institutional economics. Building a framework of theory and empirical analysis, it provides an in-depth perspective on how economic growth and environmental policy interact and historically evolve. Orthodox environmental economics usually understands environmental issues under the rules of market economy, while environmental sciences subordinate economy to physical constraints of the environment. Instead of these hierarchical visions, this book recognizes economy and the environment as co-evolving systems. The theoretical framework is elaborated based on the régulation and post-Keynesian theories combined. An idea of three-dimensional factors—capital, labor, and the environment—leads to conceptual and mathematical models, which will be applicable to wider analyses. Using this framework, Japanese history is analyzed as a typical example of environmental policy development. Historical transformations of environmental policies and growth regimes are explained using indices and econometric analysis. Experiences of strict regulations with positive economic impacts are also identified. These works lead to some interesting implications, which include mechanisms, the possibility, and conditions of "green growth''. This book proposes a new approach by bridging the gap between evolutionary–institutional economics and environmental economics, which should be stimulating to them both and possibly open the door for a new research avenue. Front Matter....Pages i-ix Front Matter....Pages 1-1 Introduction....Pages 3-8 Evolutionary and Institutional Approach to Economy and the Environment....Pages 9-20 Front Matter....Pages 21-21 Socioeconomic System as Reproductions of Economy, Humans, and the Environment....Pages 23-36 Formalizing Triple Reproductions and Environmental Costs....Pages 37-46 Institutional Coordination in the Economy-Environment Nexus and the Growth Regime....Pages 47-66 A Kaleckian Model for Economy-Environment Analysis....Pages 67-79 Front Matter....Pages 81-81 Overview of Long-Term Trends of the Economy-Environment Nexus in Japan....Pages 83-92 Econometric Analysis of the Impacts of Environmental Measures on Growth....Pages 93-102 Interpreting the Historical Transformation....Pages 103-119 Front Matter....Pages 121-121 Searching for a Vision into the Future....Pages 123-135 Back Matter....Pages 137-140