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An Input-output Economic Model Integrated Within a System Dynamics Ecological Model: Feedback Loop Methodology Applied to Fish Nursery Restoration

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  • Cordier, Mateo
  • Uehara, Takuro
  • Weih, Jeffrey
  • Hamaide, Bertrand

Abstract

While environmentally extended input-output (IO) models are commonly used for capturing interactions between ecosystems and economic systems, this kind of modelling cannot reflect interactions within the ecosystem. Isard's (1968) model has been the only exception. He entered interactions occurring within the ecosystem into IO. Nevertheless, given the linearity of IO, he could only analyze environmental issues in a linear fashion. We propose an alternative that reverses Isard's model types: the economic system is modelled within the ecosystem (not the contrary), as one of the ecosystem's components. To demonstrate its feasibility, we develop an ecological-economic model by integrating conventional economic IO within system dynamics (SD). After describing the methodological issues, we “test” the IO/SD model on ecological and economic data by applying it to the destruction and restoration of the Seine Estuary, France, where Common soles live. Our model brings insight into the consideration of feedback loops in the modelling of interactions between the ecosystem and the economic system. We believe such a tool may be of help to decision makers in mixing economic and environmental issues like, in our application case, fish habitat and harbour development.

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  • Cordier, Mateo & Uehara, Takuro & Weih, Jeffrey & Hamaide, Bertrand, 2017. "An Input-output Economic Model Integrated Within a System Dynamics Ecological Model: Feedback Loop Methodology Applied to Fish Nursery Restoration," Ecological Economics, Elsevier, vol. 140(C), pages 46-57.
    • Handle: RePEc:eee:ecolec:v:140:y:2017:i:c:p:46-57
    DOI: 10.1016/j.ecolecon.2017.04.005
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    Cited by:

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    2. Nieto, Jaime & Carpintero, Óscar & Miguel, Luis J. & de Blas, Ignacio, 2020. "Macroeconomic modelling under energy constraints: Global low carbon transition scenarios," Energy Policy, Elsevier, vol. 137(C).
    3. Raul Asseff Castelão & Celso Correia Souza & Daniel Massen Frainer, 2021. "Southern Mato Grosso state (Brazil) productive system and its impact on emissions of carbon dioxide (CO2)," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(3), pages 4134-4148, March.
    4. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully Dynamic Input-Output/System Dynamics Modeling for Ecological-Economic System Analysis," Post-Print hal-02862512, HAL.
    5. Emmanuel Bovari & Gaël Giraud & Florent McIsaac, 2018. "Carbon Pricing and Global Warming: A Stock-flow Consistent Macro-dynamic Approach," Working Paper 0a6be926-7c78-4aba-a60b-6, Agence française de développement.
    6. Mateo Cordier & Thomas Poitelon & Walter Hecq, 2018. "Developing a shared environmental responsibility principle for distributing cost of restoring marine habitats destroyed by industrial harbors," Working Papers CEB 18-008, ULB -- Universite Libre de Bruxelles.
    7. Yu, Bolin & Fang, Debin & Xiao, Kun & Pan, Yuling, 2023. "Drivers of renewable energy penetration and its role in power sector's deep decarbonization towards carbon peak," Renewable and Sustainable Energy Reviews, Elsevier, vol. 178(C).
    8. Hardt, Lukas & O'Neill, Daniel W., 2017. "Ecological Macroeconomic Models: Assessing Current Developments," Ecological Economics, Elsevier, vol. 134(C), pages 198-211.
    9. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully Dynamic Input-Output/System Dynamics Modeling for Ecological-Economic System Analysis," Sustainability, MDPI, vol. 10(6), pages 1-22, May.
    10. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully dynamic input-output/system dynamics modeling for ecological-economic system analysis," ULB Institutional Repository 2013/277116, ULB -- Universite Libre de Bruxelles.

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