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System Dynamics Implementation Of A Model Of Population And Resource Dynamics With Adaptation, Takuro Uehara, Yoko Nagase, Wayne Wakeland

Systems Science Faculty Publications and Presentations

We build and analyze a dynamic ecological economic model that incorporates endogenous innovation on input substitutability. The use of the system dynamics method allows us to depart from conventional equilibrium thinking and conduct an out-of-equilibrium (adaptation) analysis. Simulation results show that while improvement in input substitutability will expand an economy, this change alone may not improve sustainability measured by indicators such as utility-per-capita and natural resource stock. It could, however, be possible that in combination with other technological progress, improvement in input substitutability will contribute to sustainable development. Sensitivity analysis also indicates a possible complication with the use of exogenous …