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Generic Environmental Use

Description:

This is a genereal model for examinig economic uses of environmental resources. The environmental systems of the earth generate renewable products that are incorporated by human activity into the economy for which money is received and paid out for other inputs from the economy necessary to the processing.

Examples:

ENVUSE is appropriated for agriculture, forest yields, parks, aesthetic contributions, mining and other economic interactions with environment.

 Diagram

Variables:

Q = stock of environmental produce
A = assets of the economic user system
M = money on hand
D = debt account

Equations:

R = I/(1 + K0)
P = K4*A*Q
PE = (L1 + Q)/(L2*Q)

Simulation:

The graph shows the changes of D(red), M(yellow), A(green) and Q(blue) over a time period.
Source code: Envuse.java

"What if" Experiments:

  • How well would the economic system survive if the environmental inputs are cut in half? Make I=5.
  • If the economic system is started with much more borrowed capital, what happens to economic assets and money on hand? To start with more debt make D=2.
  • What happens if the interest rate on the debt is twice as high? Make IT=2.
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