Economic Modelling in Sustainability Science: Issues, Methodology, and Implications

Sustainability science is a new branch of human knowledge. It is necessary to model sustainability science based on a framework consisting of the interactions of society, ecology, the environment and the economy. This paper develops such a model, the SEEOSG model, containing the essential structural relationships that incorporate the environmental and economic conditions required for sustainability. The model is solved as a dynamic optimisation problem. This optimal growth model of ecology and economic growth enables us also to analyse the issues which are specific to sustainability science such as the ecologically sustainability and inter-generational equity implications of economic activities and policies. In the model results growth maximisation goals appear to be fraught with difficulties such as infeasibility and non-sustainability. The results also suggest also that an equilibrium ecological and economic system does not sustain over a very long period of time unless appropriate actions are taken.

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