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Earth-Economy Modeling: Advances in Linking Economic and Ecosystem Models

Author

Listed:
  • Justin Andrew Johnson

    (Department of Applied Economics, University of Minnesota, Saint Paul, Minnesota, USA)

  • Rebecca Chaplin-Kramer

    (Global Science, WWF, San Francisco, California, USA)

  • Melissa Chapman

    (Department of Environmental Systems Science, ETH Zürich, Zürich, Switzerland)

  • Stephen Polasky

    (Department of Applied Economics, University of Minnesota, Saint Paul, Minnesota, USA)

  • Brooke Williams

    (School of Environmental and Life Sciences, University of Newcastle, Callaghan, New South Wales, Australia)

Abstract

This article reviews a wide range of models that integrate ecological and economic systems, presenting Earth-Economy (EE) modeling as a general approach for sustainable management in these contexts. EE models combine global, general equilibrium economic models with high-resolution Earth system models and include two-way linkages between Earth systems and the economy, enabling data-focused decision support for sustainability. We conduct a systematic review of models related to this domain, create a typology of relevant models, and discuss the interconnections between them. We include a detailed definition of EE modeling and discuss how the relevant models can be integrated and extended to improve the comprehensiveness with which we model sustainability. This review shows both the importance of and associated challenges, but also the high demand, for this type of model.

Suggested Citation

  • Justin Andrew Johnson & Rebecca Chaplin-Kramer & Melissa Chapman & Stephen Polasky & Brooke Williams, 2025. "Earth-Economy Modeling: Advances in Linking Economic and Ecosystem Models," Annual Review of Resource Economics, Annual Reviews, vol. 17(1), pages 209-239, October.
    • Handle: RePEc:anr:reseco:v:17:y:2025:p:209-239
    DOI: 10.1146/annurev-resource-013024-033043
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    Keywords

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    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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