Change in sustainable economies

Abstract

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.