Modelling sustainability comparing an econometric (PANTA RHEI) and a systems dynamics model (SuE)

Abstract

Based on some theoretical considerations, this paper defines minimum conditions for sustainable development. It presents and compares two models suitable for simulating sustainability strategies. One (PANTA RHEI) is a highly sophisticated econometric model for the German economy. The other one (SuE) is a less disaggregated system dynamics model for the EU 15 economy. Both include the measuring of energy and material consumption and are thus well suited to indicate the linkage of economic development and environmental impact. Similarly, both calculate the employment effects of a given policy, thus, permitting the inclusion of a key social concern in the evaluation of sustainability policies as well. (c) 2005 Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.