CERES. The Association for the Study of Peak Oil and Gas. Steady state economy. A steady state economy is an economy of relatively stable size.
It features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth. Physical features[edit] The steady state economy is an entirely physical concept. Economists use gross domestic product or GDP to measure the size of an economy in dollars or some other monetary unit. A steady state economy, therefore, aims for stable or mildly fluctuating levels in population and consumption of energy and materials. Limits to economic growth[edit] History of the concept[edit] and Policies for the transition[edit] World3. The model was documented in the book Dynamics of Growth in a Finite World.
It added new features to Jay W. Forrester's World2 model. Since World3 was originally created it has had minor tweaks to get to the World3/91 model used in the book Beyond the Limits, later improved to get the World3/2000 model distributed by the Institute for Policy and Social Science Research and finally the World3/2004 model used in the book Limits to growth: the 30 year update. World3 is one of several global models that have been generated throughout the world (Mesarovic/Pestel Model, Bariloche Model, MOIRA Model, SARU Model, FUGI Model, UN World Model) and is probably the model that generated the spark for all later models.
Model[edit] Twelve leverage points. The twelve leverage points to intervene in a system were proposed by Donella Meadows, a scientist and system analyst focused on environmental limits to economic growth.
The leverage points, first published in 1997, were inspired by her attendance at a North American Free Trade Agreement (NAFTA) meeting in the early 1990s where she realized that a very large new system was being proposed but the mechanisms to manage it were ineffective. Meadows, who worked in the field of systems analysis, proposed a scale of places to intervene in a system. Awareness and manipulation of these levers is an aspect of self-organization and can lead to collective intelligence. Her observations are often cited in energy economics, green economics and human development theory. She claimed we need to know about these shifts, where they are and how to use them. For example, one might consider a lake or reservoir, which contains a certain amount of water. Leverage points to intervene in a system[edit] 12. Beyond the Limits. Beyond the Limits is a 1992 book continuing the modeling of the consequences of a rapidly growing global population that was started in Limits to Growth.
Donella Meadows, Dennis Meadows, and Jørgen Randers are the authors and all were involved in the original Club of Rome study as well. Beyond the Limits (Chelsea Green Publishing Company) and Earthscan addressed many of the criticisms of the Limits of Growth book, but still has caused controversy and mixed reactions. Reviews[edit] Climate Change & Business - Home. Climate Change Business Journal.
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