Modelling Technological Change Under Uncertainty

The transformation of the economy into a more sustainable system  requires not only social cooperation, but also technological change. The aim of WP4 is to examine various transformation pathways in the case of uncertainty and thus to derive policy implications from these pathways.

In WP4, a model framework will be provided which enables assessment of path-dependent economic growth scenarios and their impacts on ecological resources. Technological barriers, risks and uncertainty will play an essential role here. The macroeconomic model will allow long-run assessment of different policy scenarios . In addition, this model will provide scope for the applicability of various policies, in terms of their application in the long-term movement towards a more sustainable economy, to be analysed. The inclusion of heterogeneous regions and agents will further guarantee an assessment of distributive effects at the macroeconomic level.