Our societal belief systems are pruned by evolution, informing our unsustainable economies. This is one of a series of models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, CmLab.

Innovation a byproduct of the intellectual capital, requires a new paradigm for the production constituents. Human Capital HC,Structural capital SC and relational capital RC become key for intellectual capital and consequently for innovation.

There is a new type of economic model called a capital exchange model, in which the biophysical economy is abstracted away, and the interaction of units of money is studied. Benatti, Drăgulescu and Yakovenko described at least eight capital exchange models – now referred to collectively as the BDY models – which are replicated as models A through H in EiLab. In recent writings, Yakovenko goes on to show that the entropy of these monetarily isolated systems rises to a maximal possible value as the model approaches steady state, and remains there, in analogy of the 2nd law of thermodynamics. EiLab demonstrates this behaviour. However, it must be noted that we are NOT talking about thermodynamic entropy. Heat is not being modeled – only simple exchanges of cash. But the same statistical formulae apply.

In three unpublished papers and a collection of diary notes and conference presentations (all available with this model), the concept of “entropic index” is defined for use in agent-based models (ABMs), with a particular interest in sustainable economics. Models I and J of EiLab are variations of the BDY model especially designed to study the Maximum Entropy Principle (MEP – model I) and the Maximum Entropy Production Principle (MEPP – model J) in ABMs. Both the MEPP and H.T. Odum’s Maximum Power Principle (MPP) have been proposed as organizing principles for complex adaptive systems. The MEPP and the MPP are two sides of the same coin, and an understanding of their implications is key, I believe, to understanding economic sustainability. Both of these proposed (and not widely accepted) principles describe the role of entropy in non-isolated systems in which complexity is generated and flourishes, such as ecosystems, and economies.

EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.

This is an agent-based model coded in NetLogo. The model simulates population dynamics of bighorn sheep population in the Hell’s Canyon region of Idaho and will be used to develop a better understanding of pneumonia dynamics in bighorn sheep populations. The overarching objective is to provide a decision-making context for effective management of pneumonia in wild populations of bighorn sheep.

The ABM model is designed to model the adaptability of farmers in DTIM. This model includes two groups of farmers and local government admins agents. Farmers with different levels, with low WP of DTIM, are looking for economic benefits and reduced irrigation and production costs. Meanwhile, the government is looking for strategic goals to maintain water resources’ sustainability. The local government admins employ incentives (subsidies in this study) to encourage farmers to DTIM. In addition, it is used as a tool for supervision and training farmers’ performance. Farmers are currently harvesting water resources with irrigation systems and different levels of technology, and they intend to provide short-term benefits. Farmers adjust the existing approach based on their knowledge of the importance of DTIM and propensity to increase WP and cost-benefit evaluation. DTIM has an initial implementation fee. Every farmer can increase WP by using government subsidies. If none of the farmers create optimal use of water resources, access to water resources will be threatened in the long term. This is considered a hypothetical cost for farmers who do not participate in DTIM. With DTIM, considering that local government admins’ facilities cover an essential part of implementation costs, farmers may think of profiting from local government admins’ facilities by selling that equipment, especially if the farmers in the following conditions may consider selling their developed irrigation equipment. In this case, the technology of their irrigation system will return to the state before development.
- When the threshold of farmers’ propensity to DTIM is low (for example, in the conditions of scarcity of access to sufficient training about the new irrigation system or its role in reducing the cost and sustainability of water resources)
- When the share of government subsidy is high, and as a result, the profit from the sale of equipment is attractive, especially in conditions of inflation.
- Finally, farmers’ honesty threshold should be reduced based on the positive experience of profit-seeking and deception among neighbors.
Increasing the share of government subsidies can encourage farmers to earn profits. Therefore, the government can help increase farmers’ profits by considering the assessment teams at different levels with DTIM training . local government admins evaluations monitor the behavior of farmers. If farmers sell their improved irrigation system for profit, they may be deprived of some local government admins’ services and the possibility of receiving subsidies again. Assessments The local government admins can increase farmers’ honesty. Next, the ABM model evaluates local government admins policies to achieve a suitable framework for water resources management in the Miandoab region.

Our Hybrid Climate Assessment Model (HCAM) aims to simulate the behaviours of individuals under the influence of climate change and external policy makings. In our proposed solution we use System Dynamics (SD) modelling to represent the physical and economic environments. Agent-Based (AB) modelling is used to represent collections of individuals that can interact with other collections of individuals and the environment. In turn, individual agents are endowed with an internal SD model to track their psychological state used for decision making. In this paper we address the feasibility of such a scalable hybrid approach as a proof-of-concept. This novel approach allows us to reuse existing rigid, but well-established Integrated Assessment Models (IAMs), and adds more flexibility by replacing aggregate stocks with a community of vibrant interacting entities.

Our illustrative example takes the settings of the U.S., a country that contributes to the majority of the global carbon footprints and that is the largest economic power in the world. The model considers the carbon emission dynamics of individual states and its relevant economic impacts on the nation over time.

Please note that the focus of the model is on a methodological advance rather than on applying it for predictive purposes! More details about the HCAM are provided in the forthcoming JASSS paper “An Innovative Approach to Multi-Method Integrated Assessment Modelling of Global Climate Change”, which is available upon request from the authors (contact [email protected]).

The various technologies used inside a Dutch greenhouse interact in combination with an external climate, resulting in an emergent internal climate, which contributes to the final productivity of the greenhouse. This model examines how differing technology development styles affects the overall ability of a community of growers to approach the theoretical maximum yield.

System Narrative
How do rebel groups control territory and engage with the local economy during civil war? Charles Tilly’s seminal War and State Making as Organized Crime (1985) posits that the process of waging war and providing governance resembles that of a protection racket, in which aspiring governing groups will extort local populations in order to gain power, and civilians or businesses will pay in order to ensure their own protection. As civil war research increasingly probes the mechanisms that fuel local disputes and the origination of violence, we develop an agent-based simulation model to explore the economic relationship of rebel groups with local populations, using extortion racket interactions to explain the dynamics of rebel fighting, their impact on the economy, and the importance of their economic base of support. This analysis provides insights for understanding the causes and byproducts of rebel competition in present-day conflicts, such as the cases of South Sudan, Afghanistan, and Somalia.

Model Description
The model defines two object types: RebelGroup and Enterprise. A RebelGroup is a group that competes for power in a system of anarchy, in which there is effectively no government control. An Enterprise is a local civilian-level actor that conducts business in this environment, whose objective is to make a profit. In this system, a RebelGroup may choose to extort money from Enterprises in order to support its fighting efforts. It can extract payments from an Enterprise, which fears for its safety if it does not pay. This adds some amount of money to the RebelGroup’s resources, and they can return to extort the same Enterprise again. The RebelGroup can also choose to loot the Enterprise instead. This results in gaining all of the Enterprise wealth, but prompts the individual Enterprise to flee, or leave the model. This reduces the available pool of Enterprises available to the RebelGroup for extortion. Following these interactions the RebelGroup can choose to AllocateWealth, or pay its rebel fighters. Depending on the value of its available resources, it can add more rebels or expel some of those which it already has, changing its size. It can also choose to expand over new territory, or effectively increase its number of potential extorting Enterprises. As a response to these dynamics, an Enterprise can choose to Report expansion to another RebelGroup, which results in fighting between the two groups. This system shows how, faced with economic choices, RebelGroups and Enterprises make decisions in war that impact conflict and violence outcomes.

This model illustrates a positive ‘transport’ feedback loop in which lines with different resistance to flows of material result in variation in rates of change in linked entities.

This model is a replication of that described by Peterson (2002) and illustrates the ‘spread’ feedback loop type described in Millington (2013).