Change in Sustainable Economies

Two important problems in models for a sustainable economy are (1) how to connect environmental models with societal models and (2) how to model the impact of societal changes upon an environment.For the first challenge, the Leontief economic model has been transformed from a vector to a tensor equation, as a model for integrating regional descriptions of an economy and its local environment. However, this is a static model of a steady-state (stasis) economy during a given period; and here we address the second challenge of modeling the impact of societal change upon an economy and its environment.We apply the modeling of societal change in the historical case of Australia’s Mining Rent Tax of 2012-2014.


Introduction
Every model has a specific form, specific dynamics, specific content, and specifically formatted data input and information output.This is especially true of economic models, measuring economic activities in prices and monetary values, compared to environmental models, measuring natural processes in terms of physical and/or biological forms -money versus nature.
A model for a societal environment (e.g. an economy) needs to be represented in functional relationsprescriptive.A model for a physical environment is represented in causal mechanisms -causality.Thus different kinds of models need 'translations', or 'ontology' to exchange information.The concept of a 'model ontology' (as analogous to the idea of 'data ontology' in computer science) was proposed in order to deal with the complications of communicating information between different types of models.(Betz and Phillips, 2012)This emphasizes the importance of formulating models of complex things (such as societal and environmental systems) so that information can be exchanged between models.In a 'data ontology', one has shared dictionaries for communication of quantitative variables over the Internet.In a 'model ontology', one must have shared methodologies for models to communicate with each other.We also examine a 'model ontology' for communicating the effect of changes in political-economic systems onto environmental systems.
Attempting to combine two such different models within a larger, more complete model can create a complexity in modeling and data management which can be obscure, oversimplifying, and inaccurate for a model of a whole system.Thus efficient and accurate models must always be of appropriate perspective and of a finite size, tested and validated with observable data.A modeling methodology needs to have its detail, 'graininess', appropriate to the realistic challenge.We address the 'graininess' issue in modeling for sustainable economy by 'regionalizing' an integrated economic-environmental model.

Background
For economic and environmental policies aimed at developing sustainable economies, it is important to have a modeling approach which can quantitatively connect economic processes with biological and physical processes of the environment.If economic processes cannot be measured as to their real physical/biological impacts, one does not know whether or not such economic processes are sustainable in nature.
The author had extended the Leontief economic model to connect to environmental models.(Betz, 2013)Wassily Leontief formulated an economic model of national economy as an input-output balance of products produced and consumed.(Leontief, 1968)The production (P) from an economic sector consists of the sum of the I-th Σ K E IK .antity of produ uct Σ K I IK is dis purchasers Σ J X n over all othe on is a vector e ion (usually in t and a supers h the I-th sub neralization is ne can use N=1 ronmental plan tief traced the (C I ) or for ot other K-th cou he I-th produc e regional cons product and t mic sectors, and n be mathemat subscript), and he product vec n N-th supers n use the N-th ontief's econo on:  For example, topsoil may be mined or eroded, or a species may be exterminated.The quantity X IJ 2 is the amount of a thing involved in other processes in the environment N=2.For example, rain feeds watersheds and also rivers in the physical environment.Or for example in biological processes, herbivores feed carnivores.The quantity E IK 2 expresses the amount of an I-th physical/biological thing exported from the regional environment into another region.For example, tributaries feed water from one region into a river in another region.
But also one may wish to express the exchanges of physical/biological things between the economic activities in plane-1 and the environmental processes in plane-2.Things from the environmental-plane-2 (N=2) into the economic-plane 1 (N=1) are often natural resources used in the production and consumption activities of the economy of a region.We will denote this as the resource tensor: R GI MN .
On can define this quantity of resources R GI MN , where a G-th material/energy/biological resource from the environmental-plane-2 (N=2) is used in the economic-plane-1 (M=1) in the economic production of a unit of an I-th product.(Wewill use the superscript notation of 'to-from' as R GI

M(to)N(from)
.)To calculate this quantity of G-th resource taken from the environmental plane, one can use the idea of a production function R' GI 1 ,which is the quantity of G-th resource used to produce one unit of the I-th product.Then the quantity of the G-th resources used in producing P I 1 quantities of the I-th product is:R GI 12 = P I 1 R' GI

1
.This quantity of resources is taken from the environmental plane-2, so that the quantity of the G-th material/energy is diminished from the environment.Thus the quantity of physical/biological things consumed C I 2 in the environmental-plane-2 due to economic activities of economic-plane-1 are due to resource extraction activities.Thus one can set C I 2 = R GI 12 and the environmental balance equation becomes: where ∆P I 2 is the change in environmental things due to economic action in the region.Also in the regional production and use of the I-th product in the economic-plane-1, there will be two kinds of waste created in that plane and sent into the environmental plane, a production waste and a consumption waste.The production waste W HI 21 is the quantity of H-th waste created in the economic production of the I-th products; and can be calculated from per-unit waste quantities as W HI 21 = P I 1 W' HI

21
is the industrial waste production function per unit quantity of the I-th product.The consumption waste H LI 21 , which is the quantity of L-thwaste created in the regional consumption of the I-th products; and can be calculated from a per-unit consumption quantities as H LI 21 = P I 1 H' LI
The industrial waste W HI 21 and the consumption waste H LI 21 areboth disposed into the environmental-plane-2, so the environmental input-output balance equation due to economic activities becomes: Figure 2 shows the integrated economic-environmental model in tensor form, as connections between a regional Leontief economic production model and a regional environmental market.This can provide a stasis model for modeling a sustainable economy. www.ccsen The advan same terri environme

Historic
We    Bradsher elaborated upon the societal arrangements about the mine after CAA Resources reopened the mine:"Mr.Li, who owns 56 percent of CAA, said that he had paid for each of the ruling party politicians with indirect stakes in the mine to receive the royally granted title of "dato," which roughly translates as "the honorable."It costs about $100,000 to arrange each royal grant, he said.Although anti-corruption groups have campaigned against such arrangements, particularly indirect stakes, Mr. Li said he was simply following common practices in Malaysia.A government-linked industry group in Beijing announced plans on Oct. 24 to introduce standards for Chinese companies in areas like labor rights, environmental protection and community relations.To avoid potential labor issues, Mr. Li has largely imported workers, who are not unionized.CAA Resources brought in about 40 mining engineers, accountants and other professionals from China, and filled the rest of its work force with laborers from low-wage countries like Cambodia, Myanmar and Vietnam.The workers are on 12-hour shifts, up to seven days a week, and are paid based mostly on how much iron ore each shift can produce, Mr. Li said.Pacing across the jungle mine, Mr. Li described his recruitment pitch to potential hires."You can save a lot of money, there is nothing to do here," he said, "I say, 'Each of you will be a hero, you will take back 100 percent of your savings, your wife will be happier, your children will be happier.'"He has avoided filing an environmental-impact statement by erecting an eight-foot-high, blue corrugated-steel fence across the middle of the site with a gate, and calling it two mines, each less than 500 acres.Only mines over 500 acres require environmental approval."(Bradsher, 2014) Here we see that the activities in a society by individuals working in societal conditions can alter both the economics and the environment of a society.In this case, the mining company did not provide employment to citizens of the region, nor did it take responsibility for the environmental impact of its activities.Surely these two policy concerns of the Malay society could be addressed if a model for a sustainable Malay economy were constructed and used for policy.Instead, in this case, economic/environmental policy had been made principally by royally granted titles of 'dato'.

Results and Conclusion
The methodology we are using in this paper focuses upon developing and applying modeling techniques to historical cases of societal stasis and change.This modeling approach allows one to model the societal decision-making events which directly impact economic-environmental conditions.Because the Australian mining-rent tax was in place so short a time, it did not have much impact upon the Australian landscape.But had it been in place longer, it likely would have discouraged investment for mining expansion, thereby slowing the expansion of the open-mining pits.However, the model does show how modeling can connect the political-economic decisions to the economic-environmental activities of a society -policies for sustainable economies.
The model ontology of 'societal historical time-lines' facilitates policy modeling for sustainable economies through collecting and storing relevant information about (1) economic activities and environmental processes in the region of a society and also (2) policies and events in the society which can alter the region.

Fig
Fig

2
-2 can also be: Increased by things imported physically into that region from other K regions:+ Σ K I IK 2 Decreased by things taken physically from the region:-C I Decreased by things used physically by other environmental processes of the region:-Σ J X IJ 2 Decreased by things exported physically from that region into other K regions:-Σ K E IK 2 . Figu Figure 9

regio cal Case: Aus
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