It's not the 'what', but the 'how':Exploring the role of debt in natural resource (un)sustainability

<div><p>A debt-based economy cannot survive without economic growth. However, if private debt consistently grows faster than GDP, the consequences are financial crises and the current unprecedented level of global debt. This policy dilemma is aggravated by the lack of analyses factoring the impact of debt-growth cycles on the environment. What is really the relationship between debt and natural resource sustainability, and what is the role of debt in decoupling economic growth from natural resource availability? Here we present a conceptual Agent-Based Model (ABM) that integrates an environmental system into an ABM representation of Steve Keen’s debt-based economic models. Our model explores the extent to which debt-driven processes, within debt-based economies, enhance the decoupling between economic growth and the availability of natural resources. Interestingly, environmental and economic collapse in our model are not caused by debt growth, or the debt-based nature of the economic system itself (i.e. the ‘<i>what</i>’), but rather, these are due to the inappropriate use of debt by private actors (i.e. the ‘<i>how</i>’). Firms inappropriately use bank credits for speculative goals–rather than production-oriented ones–and for exponentially increasing rates of technological development. This context creates temporal mismatches between natural resource growth and firms’ resource extraction rates, as well as between economic growth and the capacity of the government to effectively implement natural resource conservation policies. This paper discusses the extent to which economic growth and the availability of natural resources can be re-coupled through a more sustainable use of debt, for instance by shifting mainstream banking forces to partially support environmental conservation as well as economic growth.</p></div

Exploring sustainable scenarios in debt-based social-ecological systems: The case for palm oil production in Indonesia

A debt-based economy requires the accumulation of more and more debt to finance economic growth, while future economic growth is needed to repay the debt, and so the cycle continues. Despite global debt reaching unprecedented levels, little research has been done to understand the impacts of debt dynamics on environmental sustainability. Here, we explore the environmental impacts of the debt-growth cycle in Indonesia, the world's largest debt-based producer of palm oil. Our empirical Agent-Based Model analyses the future effects (2018-2050) of power (im)balance scenarios between debt-driven economic forces (i.e. banks, firms), and conservation forces, on two ecosystem services (food production, climate regulation) and biodiversity. The model shows the trade-offs and synergies among these indicators for Business As Usual as compared to alternative scenarios. Results show that debt-driven economic forces can partially support environmental conservation, provided the state's role in protecting the environment is reinforced. Our analysis provides a lesson for developing countries that are highly dependent on debt-based production systems: sustainable development pathways can be achievable in the short and medium terms; however, reaching long-term sustainability requires reduced dependency on external financial powers, as well as further government intervention to protect the environment from the rough edges of the market economy

Spatial Bayesian belief networks as a planning decision tool for mapping ecosystem services trade-offs on forested landscapes

An integrated methodology, based on linking Bayesian belief networks (BBN) with GIS, is proposed for combining available evidence to help forest managers evaluate implications and trade-offs between forest production and conservation measures to preserve biodiversity in forested habitats. A Bayesian belief network is a probabilistic graphical model that represents variables and their dependencies through specifying probabilistic relationships. In spatially explicit decision problems where it is difficult to choose appropriate combinations of interventions, the proposed integration of a BBN with GIS helped to facilitate shared understanding of the human–landscape relationships, while fostering collective management that can be incorporated into landscape planning processes. Trades-offs become more and more relevant in these landscape contexts where the participation of many and varied stakeholder groups is indispensable. With these challenges in mind, our integrated approach incorporates GIS-based data with expert knowledge to consider two different land use interests – biodiversity value for conservation and timber production potential – with the focus on a complex mountain landscape in the French Alps. The spatial models produced provided different alternatives of suitable sites that can be used by policy makers in order to support conservation priorities while addressing management options. The approach provided provide a common reasoning language among different experts from different backgrounds while helped to identify spatially explicit conflictive areas

Exploring sustainable land use in forested tropical social-ecological systems: a case-study in the Wet Tropics

Tropical countries lie at the nexus of three pressing issues for global sustainability: agricultural production, climate change mitigation and biodiversity conservation. The forces that drive forest protection do not necessarily oppose those that drive forest clearance for development. This decoupling, enhanced by the stronger economic forces compared to conservation, is detrimental for the social-ecological sustainability of forested tropical landscapes. This paper presents an integrated, and spatially-explicit, Agent-Based Model that examines the future impacts of land-use change scenarios on the sustainability of the Wet Tropics region of tropical Queensland, Australia. In particular, the model integrates Bayesian Belief Networks, Geographical Information Systems, empirical data and expert knowledge, under a land-sharing/land-sparing analysis, to study the impact of different landscape configurations on trade-offs and synergies among biodiversity and two ecosystem services (sugarcane production and carbon sequestration). Contrary to most tropical regions, model simulations show that Business As Usual is helping to reconcile these contrasting goals in the forested landscape of the Wet Tropics. The paper analyses which combination of governance and socio-economic factors is causing these positive results. This is an outstanding achievement for a tropical region, considering that most tropical areas are characterized for having stronger economic-land clearing forces compared to conservation forces, which reduce important ecosystem services for human wellbeing and the health of ecosystems

Correction: It's not the 'what', but the 'how': Exploring the role of debt in natural resource (un)sustainability.

[This corrects the article DOI: 10.1371/journal.pone.0201141.]

Exploring sustainable land use in forested tropical social-ecological systems: A case-study in the Wet Tropics

Tropical countries lie at the nexus of three pressing issues for global sustainability: agricultural production, climate change mitigation and biodiversity conservation. The forces that drive forest protection do not necessarily oppose those that drive forest clearance for development. This decoupling, enhanced by the stronger economic forces compared to conservation, is detrimental for the social-ecological sustainability of forested tropical landscapes. This paper presents an integrated, and spatially-explicit, Agent-Based Model that examines the future impacts of land-use change scenarios on the sustainability of the Wet Tropics region of tropical Queensland, Australia. In particular, the model integrates Bayesian Belief Networks, Geographical Information Systems, empirical data and expert knowledge, under a land-sharing/land-sparing analysis, to study the impact of different landscape configurations on trade-offs and synergies among biodiversity and two ecosystem services (sugarcane production and carbon sequestration). Contrary to most tropical regions, model simulations show that Business As Usual is helping to reconcile these contrasting goals in the forested landscape of the Wet Tropics. The paper analyses which combination of governance and socio-economic factors is causing these positive results. This is an outstanding achievement for a tropical region, considering that most tropical areas are characterized for having stronger economic-land clearing forces compared to conservation forces, which reduce important ecosystem services for human wellbeing and the health of ecosystems

Exploring sustainable scenarios in debt-based social–ecological systems: The case for palm oil production in Indonesia

A debt-based economy requires the accumulation of more and more debt to finance economic growth, while future economic growth is needed to repay the debt, and so the cycle continues. Despite global debt reaching unprecedented levels, little research has been done to understand the impacts of debt dynamics on environmental sustainability. Here, we explore the environmental impacts of the debt-growth cycle in Indonesia, the world’s largest debt-based producer of palm oil. Our empirical Agent-Based Model analyses the future effects (2018–2050) of power (im)balance scenarios between debt-driven economic forces (i.e. banks, firms), and conservation forces, on two ecosystem services (food production, climate regulation) and biodiversity. The model shows the trade-offs and synergies among these indicators for Business As Usual as compared to alternative scenarios. Results show that debt-driven economic forces can partially support environmental conservation, provided the state’s role in protecting the environment is reinforced. Our analysis provides a lesson for developing countries that are highly dependent on debt-based production systems: sustainable development pathways can be achievable in the short and medium terms; however, reaching long-term sustainability requires reduced dependency on external financial powers, as well as further government intervention to protect the environment from the rough edges of the market economy

UML activity diagram.

<p>Structure diagram for each time-step in the model, showing the step by step processes computed by agents and patches.</p