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E-grāmata: Resources, Financial Risk and the Dynamics of Growth: Systems and Global Society

(Anglia Ruskin University, UK.),
  • Formāts: 330 pages
  • Izdošanas datums: 19-May-2020
  • Izdevniecība: Routledge
  • Valoda: eng
  • ISBN-13: 9781317285243
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  • Formāts: 330 pages
  • Izdošanas datums: 19-May-2020
  • Izdevniecība: Routledge
  • Valoda: eng
  • ISBN-13: 9781317285243

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Decision making processes within government and the finance sector are unable to adequately engage with the interconnectivity of environmental, economic, geopolitical, societal and technological systems, and the associated growth in systemic risk. One significant factor is the inability of models to account for the dependency of the world economy on natural resources and the environment. New models are needed to explore the nexus between food, energy, water and other societal challenges.

Forty-two years on from The Club of Rome pioneering ‘Limits to Growth’ (LtG) report (informed by the World3 System Dynamics (SD) model), human development continues on an economic growth driven pathway. This book presents a new SD model to evaluate the systemic risk generated by food and energy supply trends and shocks and their interactions with the material, financial and knowledge economies, under the constraints of a finite planet. This new SD models the global economy as composed of households, firms, banks and government, and the food and the energy (exhaustible and non-exhaustible) system. It models income in the form of wages and dividends, generates consumption (both food and goods) and is constrained by the limit imposed by a finite planet. The prices of the traded materials are modelled endogenously in order to change real financial flows. Prices and their interaction with growth, inflation and inequality are assumed to be the main driver of economic failure rather than through reaching planetary limits. In summary, the SD model outlined in the book not only updates World3 and examines the Limits to Growth in today’s economic system, but accurately explores potential systemic risk to the economy today.

This book will be of great interest to scholars of climate change, economics, politics, international law and sustainable development.

Recenzijas

"As the impact of climate change progresses, relatively likely and foreseeable events, such as production shocks in the food systems as a result of disease, weather-related yield loss, infrastructure failures due to physical or digital issues, need to be better modelled and understood. This new understanding of risk, as a dynamic topography where sub-acute and acute trends and events may come together rapidly and at large scales requires new analytical foundations. The model, ERRE, presented in this book offers the foundation to simulate and query how these shocks may occur, and may cascade through the global social and financial systems. These insights are key to building the physical, community, and financial resilience that must be at the heart of humanity's efforts in the 21st century." -- Molly Jahn, Professor at University of Wisconsin-Madison, USA

"Nearly 50 years have passed since the publication of the first world model, the famous report to the Club of Rome titled 'The Limits to Growth'. Today, we see a remarkable return of interest in this subject and one result is this book by Pasqualino and Jones that extensively reviews the earlier work and includes the description an improved world model called ERRE. We badly need formal models to understand a world thats becoming way too complex for our intuition to grasp. This book is a considerable step forward in the right direction." Ugo Bardi, Professor at University of Florence, Italy

"Roberto Pasqualino and Aled Jones have produced a hugely ambitious and timely piece of work. In its time, the original 'Limits to Growth' was hugely influential, and as we lurch towards a climate emergency, this thoughtful and thorough approach to modelling the world deserves to have as much impact, not least in its challenge to the dominant reductive economic thought." Nick Silver, Chairman, Climate Bonds Initiative, UK

"The Anthropocene demands a fresh approach to analysing the real risks to humanity of a destabilising Earth System. This book is a big step towards meeting that challenge, exploring the shocks, feedbacks, tipping points and other disruptive surprises that might lie ahead." -- Will Steffen, Emeritus Professor at the Australian National University, Australia

"The importance of modelling is not being right, its about helping us think more correctly. The Club of Romes 1970s modelling, revisited in this book, was meant to explore highly uncertain long term futures to help us think more correctly about ecological limits. This book continues that tradition, along the way exploring the limits of modelling as well as the benefits of non-linear dynamics in understanding the dramatic environmental choices facing us." -- Michael Mainelli, Executive Chairman, Z/Yen Group "As the impact of climate change progresses, relatively likely and foreseeable events, such as production shocks in the food systems as a result of disease, weather-related yield loss, infrastructure failures due to physical or digital issues, need to be better modelled and understood. This new understanding of risk, as a dynamic topography where sub-acute and acute trends and events may come together rapidly and at large scales requires new analytical foundations. The model, ERRE, presented in this book offers the foundation to simulate and query how these shocks may occur, and may cascade through the global social and financial systems. These insights are key to building the physical, community, and financial resilience that must be at the heart of humanity's efforts in the 21st century." -- Molly Jahn, Professor at University of Wisconsin-Madison, USA

"Nearly 50 years have passed since the publication of the first world model, the famous report to the Club of Rome titled 'The Limits to Growth'. Today, we see a remarkable return of interest in this subject and one result is this book by Pasqualino and Jones that extensively reviews the earlier work and includes the description of an improved world model called ERRE. We badly need formal models to understand a world thats becoming way too complex for our intuition to grasp. This book is a considerable step forward in the right direction." Ugo Bardi, Professor at University of Florence, Italy

"Roberto Pasqualino and Aled Jones have produced a hugely ambitious and timely piece of work. In its time, the original 'Limits to Growth' was hugely influential, and as we lurch towards a climate emergency, this thoughtful and thorough approach to modelling the world deserves to have as much impact, not least in its challenge to the dominant reductive economic thought." Nick Silver, Chairman, Climate Bonds Initiative, UK

"The Anthropocene demands a fresh approach to analysing the real risks to humanity of a destabilising Earth System. This book is a big step towards meeting that challenge, exploring the shocks, feedbacks, tipping points and other disruptive surprises that might lie ahead." -- Will Steffen, Emeritus Professor at the Australian National University, Australia

"The importance of modelling is not being right, its about helping us think more correctly. The Club of Romes 1970s modelling, revisited in this book, was meant to explore highly uncertain long term futures to help us think more correctly about ecological limits. This book continues that tradition, along the way exploring the limits of modelling as well as the benefits of non-linear dynamics in understanding the dramatic environmental choices facing us." -- Michael Mainelli, Executive Chairman, Z/Yen Group

List of figures
x
List of tables
xiv
List of equations
xvi
Acknowledgements xvii
Foreword xxii
Preface xxiv
PART I World models and limits
1(128)
1 The first formal world models
3(44)
2 A calibration analysis of World 3-03
47(17)
3 Welcome to the real world!
64(65)
PART II Economic Risk, Resources and Environment (ERRE) model
129(155)
4 Economic thinking and system modelling
131(46)
5 System structure and theory
177(41)
6 Data, statistics, and scenario analysis
218(50)
7 Conclusion
268(16)
Index 284
Roberto Pasqualino is Visiting Researcher of the Global Sustainability Institute at Anglia Ruskin University, UK. Robertos research interest is in feedback modelling of industrial policies for the analysis of financial risk and sustainability. This involves the nexus between food security, energy transition, and those environmental and economic shocks that have the potential to disrupt systems in a complex world.

Aled Wynne Jones is the inaugural Director of the Global Sustainability Institute (GSI) at Anglia Ruskin University, UK.