The aim of this paper is to demonstrate the significant differences that would emerge in policy formulation, when environmental capital is explicitly accounted for in macroeconomic analyses. These differences are illustrated with reference to the Australian economy. The main analytic frameworks...

Environmental issues are usually considered as drivers of allocative distortions within markets. The corrections of such distortions, for example, by recourse to the internalization of externalities, are firmly rooted within the market framework. Therefore the traditional view is that...

This paper illustrates the differences in policy outcomes that would follow when environmental macroeconomic frameworks are employed in lieu of standard macroeconomic frameworks. The non-recognition of real environmental capacity constraints could explain, at least in part, the inability of...