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Economic Use of Renewable Sources

Description:

In this model, renewable resources from the enviroment are used by the economy. Money received from environmentally derived sales or services is used to pay for the economic assets required to use the enviroment.

Examples:

  • Fishermen receive money to pay for their boats.
  • Shrimp production from aquaculture shrimp ponds.
    		•  Diagram

    Variables:

    M = money
    A = system assets
    P1 = price at the market
    P2 = price for goods and services

    Equations:

    R = J/(1 + k1*E*A)
    E = k2*M/P2
    Y = k6*R*E*A
    DA = k3*E - k4*R*E*A - k5*A
    DM = P1*Y - k2*M

    Simulation:

    The graph shows the changes of A(red) and M(blue) over a time period.
    Source code: Prodsale.java

    "What if" Experiments:

  • What is the effect of the amount of money you start with? Try M=500.
  • If the price of goods and services changes, what happens to the system?
    		•