The aim of this work was to develop a robust transition model that should be able to provide information on public policies to avoid either an attractive equilibrium with fossil fuel-intensive capital only, or a collapse due to a climate-induced Minsky moment. The construction of such a model was based on [Grasselli and Costa Lima, 2012], which belongs to the family of disequilibrium models. This model was selected because of its stock-flow consistency with non-linear dynamics leading to multiple equilibria, which can incorporate this Minsky moment. As the extensions of this model do not seem to fundamentally alter its robustness, improvements have been made in particular concerning the relaxation of Say’s “law” by introducing inventories. The velocity of money and money creation can then be followed in this extended version. Finally our work consisted in building a simple transition model with only two types of capital, and to study the multiple equilibria and the possible levers to guarantee the transition from one capital to the other.
Download the thesis on the website theses.fr
