Agent-Based Macroeconomics of Climate and Digital Transformations

The climate and digital transformations of our economies and business landscapes are dynamic processes characterized by the typical features of complex and non-linear systems. Indeed, positive feedbacks, path-dependency and lock-in, tipping points, network effects and increasing returns are basic elements and stylized facts to be taken into account. These aggregate economic outcomes are the results of out-of-equilibrium dynamic processes originated by the evolving network of interactions involving heterogeneous economic agents, the socio-technical system and the natural environment. The agent-based modelling approach to macroeconomics is very well suited to address these questions, because of its capacity to integrate the "micro" and "macro" aspects by modelling the network of interactions among the economic agents and their aggregate outcomes. This chapter aims to provide a comprehensive review of the state of the art of agent-based macroeconomics of climate change and digital transformations by pointing out its distinctive features and most important outcomes so far, as well as its pros and cons with respect to traditional equilibrium modelling approaches.