A dimensionally consistent aggregation framework for biophysical metrics

Deepak Malghan

Document Type

Article

Publication Title

Ecological Economics

Abstract

We develop a formal representation of the economy–ecosystem interaction problem by distinguishing between stock-flow, and fund-flux spaces (Georgescu-Roegen, 1971). We then define dimensionless quantities in both the cardinal stock-flow space and the ordinal fund-flux space. This leads to analytic definitions of natural capital and natural income in the fund-flux space. We show that a stock-fund representation of the economy–ecosystem interaction problem helps investigate aggregation properties of biophysical metrics. In particular, we show how a metric that is dimensionally consistent in the stock-flow space can have dimensional problems in the fund-flux space. Ecological footprint is used as an illustrative example. Finally, we argue that dimensionally consistent metrics are keys to further the development of biophysical assessments as a tool for practical environmental policy. Research Highlights: A formal stock-fund representation of the economy-ecosystem interaction problem. Mapping problem between cardinal stock-flow space and ordinal fund-flux space. Dimensional consistency in the fund-flux space. Ecological footprint as an example.

Publication Date

1-4-2011

Publisher

Elsevier

Volume

Vol.70

Issue

Iss.5

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