Modeling the Interface Between the Social Geosystem and the Environment
Abstract
Abstract. This article deals with the context of a new rationality in modeling due to the climate agenda and the introduction of ESG-type principles. We studied a geosystem with homogeneous ecosystems that have a similar geological basement, relief mesoforms, and industrial-territorial complexes. They function in a unified institutional climate. In this case, the focus was on the mesoscale of the systems. The institutional order was based on the relationship between private and general institutions, and organizational features of regions. The Dixit-Stiglitz monopolistic competition model was used to account for financial performance and utility in an equilibrium industry with high nature intensity. What was new was the introduction of the concept of social brands associated with ecosystem services and used simultaneously to account for the utility and customization of the new economic order, as well as the introduction of a social discount rate (a discount factor). Social brands create a certain ‘green’ meaningful context in relation to natural capital and acting brands through social platforms. Thus, the society, through the mechanism of social brands, is offered a new format of interactions in which the structure of social brands becomes a priority in relation to the productive structure of the economy.
Keywords: climate agenda, natural and social geosystems, utility, social discount, social brand
References
[1] United Nations Environment Program. Decoupling natural resource use and environmental impacts from economic growth. International Resource Panel, Paris. 2011. Available from: https://www.unep.org/resources/report/decoupling-natural-resourceuse-and-environmental-impacts-economic-growth
[2] Quillérou E, Thomas R. Costs of land degradation and benefits of land restoration: A review of valuation methods and suggested frameworks for inclusion into policymaking. CAB Review. 2012;7(60):1-12.
[3] Conrad E, Cassar LF. Decoupling economic growth and environmental degradation: Reviewing progress to date in the small island state of Malta. Sustainability. 2014;6:6729-6750.
[4] Eurostat. Recommendations of the conference of European statisticians for measuring sustainable development. Geneva: OECD; 2014.
[5] OECD. Indicators to measure decoupling of environmental pressure from economic growth. OECD; 16 May 2002. Available from: http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/ ?cote=sg/sd(2002)1/final&doclanguage=en
[6] Stiglitz J, Sen A, Fitoussi JP. Report by the commission on the measurement of economic performance and social progress. Commission on the Measurement of Economic Performance and Social Progress, Paris. 2009. Available from: https://www.researchgate.net/publication/ 258260767_Report_of_the_Commission_on_the_Measurement_of_Economic_ Performance_and_Social_Progress_CMEPSP
[7] UNEP. Millennium ecosystem assessment. Ecosystems and human well-being. Washington DC: Island Press; 2005.
[8] United Nations, European Commission, Food and Agricultural Organization of the United Nations et all. The system of environmental-economic accounting 2012. Central framework. United Nations, USA; 2014. Available from: https://unstats.un.org/unsd/envaccounting/seearev/seea_cf_final_en.pdf
[9] Nkonya E., Mirzabaev A., Von Braun J . Economics of land degradation and improvement – A global assessment for sustainable development. – Springer, Cham, 2016.
[10] Nkonya E., Mirzabaev A., Von Braun J. Economics of land degradation and improvement – A global assessment for sustainable development. – Springer, Cham, 2016.
[11] von Braun J, Gerber N, Mirzabaev A, Nkonya E. The economics of land degradation. ZEF Working Paper. 2013;109:1-35.
[12] Sochava BV. An introduction to the theory of geosystems. Novosibirsk: Nauka Press; 1978.
[13] Kirdina SG. Methodological institutionalism as a new principle of complex social systems analysis at meso-level. Terra Economicus. 2016;14(1):98-108.
[14] Kirdina-Chandler S, Maevsky V. Evolution of heterodox mesoeconomics. Terra Economicus. 2020;18(3):30-52.
[15] Shastitko AE. Meso-institutions: Multiplication of entities or development of an economic research programme? Economic Issues. 2019;5:5-25.
[16] Dopfer K, Foster J, Potts J. Micro–meso–macro. Journal of Evolutionary Economics. 2004;14(3):263-279.
[17] Dopfer K. Mesoeconomics: A unified approach to systems complexity and evolution. Handbook on the Economic Complexity of Technological Change. – Edward Elgar Publishing, Cheltenham, 2011;13391.
[18] Dopfer K. The origins of meso economics. Schumpeter’s legacy and beyond. Journal of Evolutionary Economics. 2012;22(1):133-160.
[19] Elsner W. The process and a simple logic of ‘meso’. Emergence and the coevolution of institutions and group size. Journal of Evolutionary Economics. 2010;20(3):445-477.
[20] Menard C. Embedding organizational arrangements: Towards a general model. Journal of Institutional Economics. 2014;10(4):567-589.
[21] Hassink R, Isaksen A, Trippl M. Towards a comprehensive understanding of new regional industrial path development. Regional Studies. 2019;11:1636-1645.
[22] Isaksen A, Trippl M. Exogenously led and policy-supported new path development in peripheral regions: Analytical and synthetic routes. Economic Geography. 2017;93(5):436-457.
[23] Dixit A, Stiglitz J. Monopolistic competition and optimum product diversity. American Economic Review. 1977;67(3):297-308.
[24] Krugman P. Increasing returns, monopolistic competition, and international trade. Journal of International Economics. 1979;9(4):469-479.
[25] Krugman PR. Scale economies, product differentiation, and the pattern of trade. American Economic Review. 1980;70(5):950-959.
[26] Allen T, Giampietro M. Holons, creaons, genons, environs, in hierarchy theory: Where we have gone. Ecological Modeling. 2014;293:31-41.
[27] Alcamo J, Ash N, Butler C. et al. Ecosystems and human well-being: A framework for assessment. Millennium Ecosystem Assessment. Washington, DC: Island Press; 2003.
[28] Endres A, Kverner I. Economics of natural recourses. Saint-Petersburg: Piter; 2004.
[29] Holling CS. Resilience and stability of ecological systems. Annual Review of Ecological Systems. 1973;4:1-24.
[30] Acemoglu D, Robinson JA. Why nations fail: The origins of power, prosperity, and poverty. New York: Crown Publishing Group; 2012.
[31] Haines-Young R, Potschin M. Common international classification of ecosystem services (CICES): Consultation on version 4, August–December 2012. Centre for Environmental Management, University of Nottingham, 2013.