The international economics of resources and resource ... - Index of

Multi-agent modeling of economic innovation dynamics and its implications 333
Fig. 8 Case (ii) for growth dynamics
tantamount to a dominating innovation effect and the corresponding substitution
processes of new for old products. Contrary to that, in the second phase (t>45) of the
emission dynamics things are reversing in that now the growth effect of innovation
and the corresponding intersectoral effects are becoming superior (cf. lower parts of
Fig. 8). This is a specific variant of the so-called rebound effect often observable in
modern market economies (cf. Sorrell 2007). 21 Hence, it may be concluded that in the
long run the rate of emission abatement on the agent level mentioned above is not
sufficient for guaranteeing a sustainable reduction of the total amount of emissions.
Finally case (iii) might be used as an approach to the effect of economic crisis and
stagnation. It is assumed that the boundary conditions in favor of emission
abatement still persist but that the diffusion dynamics is hampered due to a
catastrophic jump in the critical mass the overcoming of which is necessary for a
successful (self-enforcing) diffusion of new commodities. 22 Considering the
monetary aggregates (upper left part of Fig. 9) there are three phases: moderate
growth dynamics until the crisis is occurring (t60 (Cf. section 3 (4)).