I agree, and for climate economics especially it makes a lot more sense than equilibrium models.
Something I found especially interesting in the LtG model is that the costs of dealing with environmental damage and extracting more scarce resources build up gradually over time, but the way it works out is that economic output keeps growing rapidly, until these costs become overwhelming and it all suddenly crashes down. Everything looks great until you're on the verge of catastrophe.
But to this day, people look at our growing economy and think it refutes LtG, because they assume LtG predicts a gradual decline.
Something I found especially interesting in the LtG model is that the costs of dealing with environmental damage and extracting more scarce resources build up gradually over time, but the way it works out is that economic output keeps growing rapidly, until these costs become overwhelming and it all suddenly crashes down. Everything looks great until you're on the verge of catastrophe.
But to this day, people look at our growing economy and think it refutes LtG, because they assume LtG predicts a gradual decline.