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Aggregate dynamic economic-ecological models for sustainable development

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  • Bergh, J.C.J.M.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Nijkamp, P.

Abstract

The aim of the paper is to formulate a general integrated aggregate dynamic model for sustainable development, that will be both simple in structure and able to deal with the main objectives, processes, and constraints applying to sustainable development in closed economic - ecological systems. General characteristics of models to be used for sustainable development are discussed. It turns out that such models do not exist. Short critical descriptions are given of representative analytical models that have arisen in theories on economic growth with renewable and nonrenewable resources, and pollution, or that provide an interesting alternative view of economic - environmental interactions. These models appear to provide incomplete descriptions of economic, ecological, and interactive processes. To clarify the logic and special features of the general model, three issues are addressed. First, a general ecological model is proposed that is consistent with macroeconomic system in terms of geographical coverage. Such a general model would have to be able to deal with a specific set of general functions and characteristics of ecological systems. Second, the meaning of some economic, ecological, and physical concepts for modelling is discussed. Third, the potential for inclusion of sustainable development conditions is examined. Next, the general structure of an economic - ecological model for sustainable development is presented. It includes the general ecological model, descriptions of economic activities and dynamics, material and economic balances, constraints, and behavioural feedback mechanisms related to sustainable development conditions. It is shown how concern for the well-being of future generations can be included. Simulation is used to obtain insight into the behaviour of the system under different policies and scenarios. Several environmental policies can be studied, including waste treatment, recycling, research and development, and environmental cleaning. R

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Bibliographic Info

Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0073.

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Date of creation: 1990
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Handle: RePEc:dgr:vuarem:1990-73

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Web page: http://www.feweb.vu.nl

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Cited by:
  1. Vogelvang, E., 1990. "The program 'Pjohcoin' for applications of the co-integration tests of Johansen," Serie Research Memoranda 0084, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Jeroen Bergh, 1993. "A framework for modelling economy-environment-development relationships based on dynamic carrying capacity and sustainable development feedback," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(4), pages 395-412, August.
  3. Bergh, J.C.J.M. & Nijkamp, P., 1991. "Model design and experiments with a view on national-regional sustainable development," Serie Research Memoranda 0106, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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