92 research outputs found
A Critical Analysis of Dimensions and Curve Fitting Practice in Economics
When dealing with sustainability we are concerned with the biophysical as well as the monetary aspects of economic and ecological interactions. This multidimensional approach requires that special attention is given to dimensional issues in relation to curve fitting practice in economics. Unfortunately, many empirical and theoretical studies in economics, as well as in ecological economics, apply dimensional numbers in exponential or logarithmic functions. We show that it is an analytical error to put a dimensional unit x into exponential functions ( a x ) and logarithmic functions ( x a log ). Secondly, we investigate the conditions of data sets under which a particular logarithmic specification is superior to the usual regression specification. This analysis shows that logarithmic specification superiority in terms of least square norm is heavily dependent on the available data set. The last section deals with economistsâ âcurve fitting fetishismâ. We propose that a distinction be made between curve fitting over past observations and the development of a theoretical or empirical law capable of maintaining its fitting power for any future observations. Finally we conclude this paper with several epistemological issues in relation to dimensions and curve fitting practice in economics.dimensions, logarithmic function, curve fitting, logarithmic specification
Toward Partial Reorientation of Land Management for Sustainability in View of Material Circulation: Biophysical and Historical Analysis
This paper explores two major issues, from biophysical and historical viewpoints. We examine land management, which we define as the long-term fertility maintenance of land in relation to agriculture, fishery and forestry. We also explore humansâ positive role as agents aiming to reinforce harmonious materials circulation within the land. Liebigâs view on nature, agriculture and land, emphasizes the maintenance of long-term land fertility based on his agronomical thought that the circulation of matter in agricultural fields must be maintained with manure as much as possible. The thoughts of several classical economists, on nature, agriculture and land are reassessed from Liebigâs view point. Then, the land management problem is discussed at a much more fundamental level, to understand the necessary conditions for life in relation to land management. This point is analyzed in terms of two mechanisms: entropy disposal on the earth, and material circulation against gravitational field. Finally from the historical example of the metropolis of Edo, it is shown that there is yet another necessary condition for the sustainable management of land based on the creation of harmonious material cycles among cities, farm land, forests and surrounding sea areas in which humans play a vital role as agent.land management, material circulation, sustainability, Liebig, Edo
An application of MSIASM to Chinese exosomatic energy metabolism
The methodology of Multi-Scale Integrated Analysis of Societal Metabolism (MSIASM) is applied to analyze the Chinese economy. This paper presents four tasks: (i) identifying a set of benchmarks that makes it possible to compare various characteristics of the Chinese economy with those of other country groups and the world (level) average; (ii) explaining the differences over the selected set of benchmarks, by looking at the characteristics of the various sub-sectors of the Chinese economy; (iii) understanding existing trends and future feasible future development paths for China by studying the existence of reciprocal constraints between the whole economy and its sub-sectors; andChina, Energy, Multi-Scale Integrated Analysis, Societal Metabolism,
Unraveling the Complexity of the Jevons Paradox
The term âJevons Paradoxâ flags the need to consider the different hierarchical scales at which a system under analysis changes its identity in response to an innovation. Accordingly, an analysis of the implications of the Jevons Paradox must abandon the realm of reductionism and deal with the complexity inherent in the issue of sustainability: when studying evolution and real change how can we define âwhat has to be sustainedâ in a system that continuously becomes something else? In an attempt to address this question this paper presents three theoretical concepts foreign to conventional scientific analysis: (i) complex adaptive systemsâto address the peculiar characteristics of learning and self-producing systems; (ii) holons and holarchyâto explain the implications of the ambiguity found when observing the relation between functional and structural elements across different scales (steady-state vs. evolution); and (iii) Hollingâs adaptive cycleâto illustrate the existence of different phases in the evolutionary trajectory of a complex adaptive system interacting with its context in which either external or internal constraints can become limiting. These concepts are used to explain systemic drivers of the Jevons Paradox. Looking at societyâs thermodynamic foundations, sustainability is based on a dynamic balance of two contrasting principles regulating the evolution of complex adaptive systems: the minimum entropy production and the maximum energy flux. The co-existence of these two principles explains why in different situations innovation has to play a different role in the âsustainable developmentâ of society: (i) when society is not subject to external biophysical constraints improvements in efficiency serve to increase the final consumption of society and expand its diversity of functions and structures; (ii) when the expansion of society is limited by external constraints improvements in efficiency should be used to avoid as much as possible the loss of the existing diversity. It is concluded that sustainability cannot be achieved by technological innovations alone, but requires a continuous process of institutional and behavioral adjustment
Reconsideration of Dimensions and Curve Fitting Practice in Economics Elaborating on Georgescu-Roegenâs Economic Methodology
This paper is to examine the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegenâs economic methodology in relation to the three main concerns of his epistemological orientation. Section 2 introduces two critical issues in relation to dimensions and curve fitting practices in economics in view of Georgescu-Roegenâs economic methodology. Section 3 deals with the logarithmic function (ln z) and shows that z must be a dimensionless pure number, otherwise it is nonsensical. Several unfortunate examples of this analytical error are presented including macroeconomic data analysis conducted by a representative figure in this field. Section 4 deals with the standard Cobb-Douglas function. It is shown that the operational meaning cannot be obtained for capital or labor within the Cobb-Douglas function. Section 4 also deals with economistsâ ?curve fitting fetishism?. Section 5 concludes this paper with several epistemological issues in relation to dimensions and curve fitting practices in economics.dimensions, logarithmic function, Nicholas Georgescu-Roegen, macroeconomics, Cobb-Douglas function, econometrics, curve fitting, transcendental production function
Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism (MUSIASEM): An Outline of Rationale and Theory
This paper presents an outline of rationale and theory of the MuSIASEM scheme (Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism). First, three points of the rationale behind our MuSIASEM scheme are discussed: (i) endosomatic and exosomatic metabolism in relation to Georgescu-Roegenâs flow-fund scheme; (2) the bioeconomic analogy of hypercycle and dissipative parts in ecosystems; (3) the dramatic reallocation of human time and land use patterns in various sectors of modern economy. Next, a flow-fund representation of the MUSIASEM scheme on three levels (the whole national level, the paid work sectors level, and the agricultural sector level) is illustrated to look at the structure of the human economy in relation to two primary factors: (i) human time - a fund; and (ii) exosomatic energy - a flow. The three levels representation uses extensive and intensive variables simultaneously. Key conceptual tools of the MuSIASEM scheme - mosaic effects and impredicative loop analysis - are explained using the three level flow-fund representation. Finally, we claim that the MuSIASEM scheme can be seen as a multi-purpose grammar useful to deal with sustainability issues.Energy, Flow-Fund Model, Multi-Scale Integrated Analysis, Mosaic Effects, Impredicative Loop, Societal and Ecosystem Metabolism, Hierarchy, Multi-Purpose
A critical analysis of dimensions and curve fitting practice in economics
When dealing with sustainability we are concerned with the biophysical as well as the monetary aspects of economic and ecological interactions. This multidimensional approach requires that special attention is given to dimensional issues in relation to curve fitting practice in economics. Unfortunately, many empirical and theoretical studies in economics, as well as in ecological economics, apply dimensional numbers in exponential or logarithmic functions. We show that it is an analytical error to put a dimensional unit x into exponential functions ( a x ) and logarithmic functions ( x a log ). Secondly, we investigate the conditions of data sets under which a particular logarithmic specification is superior to th
Reconsideration of dimensions and curve fitting practice in economics ellaborating on Georgescu-Roegen's economic methodology
This paper is to examine the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegen's economic methodology in relation to the three main concerns of his epistemological orientation. Section 2 introduces two critical issues in relation to dimensions and curve fitting practices in economics in view of Georgescu-Roegen's economic methodology. Section 3 deals with the logarithmic function (ln z) and shows that z must be a dimensionless pure number, otherwise it is nonsensical. Several unfortunate examples of this analytical error are presented including macroeconomic data analysis conducted by a representative figure in this field. Section 4 deals with the standard Cobb-Douglas function. It is shown that the operational meaning cannot be obtained for capital or labor within the Cobb-Douglas function. Section 4 also deals with economists "curve fitting fetishism". Section 5 concludes thispaper with several epistemological issues in relation to dimensions and curve fitting practices in economics
Can biofuels replace fossil energy fuels? A multi-scale integrated analysis based on the concept of societal and ecosystem metabolism : Part 1
Many claim that biofuels represent a viable and desirable alternative to fossil energy fuels. This paper (the first of a series of two) provides a critical appraisal of the claim that a large scale move to biofuels is either feasible or desirable for powering the economy of a developed country. This conclusion is based on an integrated analysis of the performance of biofuels versus that of fossil energy fuels. The text is divided into 2 main sections. Section 1 provides a semantic framing of the issue. Two metaphors are used to explain why biomass energy was abandoned during the industrial revolution in the first place: (1) the Yin-Yang tension between recycling (to increase ecological compatibility) and linearization (to increase economic competitiveness) of the flows metabolized by society; (2) the energy sector of a society seen like the heart for the human body. An alternative heart, to be viable, must deliver the supply of blood which is expected by the rest of the body both in terms of quantity and quality. This section concludes that for a developed society not everything that can be burned should be considered as a desirable fuel and it provides a framework for such an evaluation
How serious is the addiction to oil of developed society? A multi-scale integrated analysis based on the concept of societal and ecosystem metabolism : Part 2
In these years the growing concern for both global warming and peak oil has put the energy issue back on the front burner of the political debate. In technical terms, this implies looking for alternatives to fossil energy as the primary energy source powering the economic process of modern economies. This paper (the second of series of two) presents a methodological approach called Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism, which can be used to study this problem. After a short introduction, section one presents the basic rationale and the theoretical building blocks of this approach (Mosaic Effect Across Levels and Impredicative Loop Analysis). Section two presents a few results of previous applications of this method which confirm its validity, then illustrates how MSIASEM can be used for checking the feasibility and desirability of alternative energy sources. Finally, the last section of this paper illustrates the link between societal and ecosystem metabolism, which makes it possible to study the compatibility of societal metabolism on its interface with ecological processes. In conclusion, with this paper we claim that the MSIASEM approach can provide a heuristic vision of the "quality" of potential alternatives to fossil energy, due to its ability to contextualize such an analysis in relation to the characteristics of the metabolism of a given society, the characteristics of its energy sector and the characteristics of the metabolism of the ecosystems embedding them
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