A Classical-Post Keynesian critique on neoclassical environmentally-adjusted multifactor productivity

Vol. 43 No. 1 (2023)

Jan-Mar / 2023
Published February 28, 2023

How to Cite

Guarini, Giulio. 2023. “A Classical-Post Keynesian Critique on Neoclassical Environmentally-Adjusted Multifactor Productivity”. Brazilian Journal of Political Economy 43 (1):67-77. https://doi.org/10.1590/0101-31572023-3391.

A Classical-Post Keynesian critique on neoclassical environmentally-adjusted multifactor productivity

Giulio Guarini
Tuscia University, Viterbo-Italy
Brazilian Journal of Political Economy, Vol. 43 No. 1 (2023), Jan-Mar / 2023, Pages 67-77


The aim of the article is to critically analyze Environmentally-Adjusted
Multifactor Productivity (EAMP), by considering the Classical-Post-keynesian environmental
framework Ecological Macroeconomics, integrated with the Evolutionary Environmental
Economics. The paper introduces EAMP as rooted in in neoclassical economics and derived
from Cobb-Douglas function with natural resources built by Solow (1974). I present
theoretical critiques of EAMP’s neoclassical assumptions by developing perspectives from
heterodox Ecological Macroconomics literature. Finally, I discuss the shortcomings of
EAMP’s conceptual framework, making specific reference to the policy debate on Porter
Hypothesis. The article puts in evidence how the assumptions of constant returns to scale,
perfect competition and perfect input substitutability seriously alter the meaning and
promise of sustainability policy. The analysis indicates that EAMP is a poor instrument to study complex issues regarding the promotion and effectiveness of green innovations
and should therefore be abandoned to face the great challenges regarding the process of
ecological transformation.

JEL Classification: B12; Q55; O13.

Keywords: Classical-Post-Keynesian economics environmentally-adjusted multifactor productivity eco-innovation