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N-Dimensional Sustainable Economic Model
A proposal / white paper by Jeroen Lapre'. Version 0.1. Copyright 2007.
Build 5Dec2K7.
Summary
N-Dimensional sustainable economic model R&D that includes the true
value of social activities and the environment as crucial components of
the double bottom line.
Background
Traditional economic model is 1 dimensional. i.e. a dollar value
assigned to a product or service. Environmental impact is externalised
in most traditional business transactions.
Proposal
Apply cutting edge computer technology and information theory to the
bulding of an N-dimensional sustainable economic model.
Related Links
Economics
Foundations
of Economic Analysis
Index
Sustainable Economic Welfare
The Long Tail
Statistics
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Volume of the Shape VS Area Under the Curve
In traditional economics / business, revenue is calculated as the area
under the curve of sales over time.
This is typically a 2 dimensional calculation.
In a sustainable economic model, social and environmental
considerations would make such a caculation N-dimensional.
The volume of the N-dimensional shape would replace the area under the
curve.
Related Links
Area
Under a Curve
Revenue
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Descriptive Complexity as Dimension of
Sustainable Economic Model
Summary
Descriptive Complexity (from information theory) may offer a
quantitative value of positive activities and living things as a
dimensions of a sustainable economic model.
Description
According to information theory, and related research, the descriptive
complexity of a thing can be represented by the number of bits required
to describe that thing.
e.g. the number of bits required to describe a gas or a crystal is
relatively low. The number of bits required to describe an insect is
significantly more, then on up through plants, trees, reptiles mammals,
including humans.
Descriptive complexity as an argument to protect biodiversity. A
biodiverse ecosystem would have a higher DC than a monocrop farm
economy.
Related Links
Complexity
algorithmic information theory
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Inversely Linked Dimensions
Example
The Slow Food Movement
The slow food movement encourages consuming
food that is grown as close to where you live as possible, and food
that is in season.
An important component is the pollution that is generated to fly or
ship food across the planet.
The true cost of transport could be captured in an N-dimensional
economic model that includes environmental impact of pollution.
i.e. the more fuel that is used to transport food produce, the more
pollution is released into the environment.
The descriptive complexity of the environment is threatened by
pollution, so therefore it's potential value is decreased, as the
amount of fuel/pollution increases.
Related Links
Slow Food Movement
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© 2007 Distant Galaxy
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