Search results
Results from the WOW.Com Content Network
Basic diagram of the circular flow of income. The functioning of the free-market economic system is represented with firms and households and interaction back and forth. [2] The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between ...
Natural resources flow through the economy and end up as waste and pollution. A simple circular flow of income diagram is replaced in ecological economics by a more complex flow diagram reflecting the input of solar energy, which sustains natural inputs and environmental services which are then used as units of production. Once consumed ...
An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles .
A flow variable is measured over an interval of time. Therefore, a flow would be measured per unit of time (say a year). Flow is roughly analogous to rate or speed in this sense. For example, U.S. nominal gross domestic product refers to a total number of dollars spent over a time period, such as a year. Therefore, it is a flow variable, and ...
Unlike economic accounting, MFA also covers non-economic waste flows, emissions to the environment, and non-market natural resources. Model of an industrial process in economic accounting (top) and in physical accounting (bottom). The process balance is a first order physical principle that turns MFA into a powerful accounting and analysis tool.
The method can be used to assess environmental burdens associated with the economic activities of a nation and to determine how material intensive an economy is. The principle concept underlying MFA is a simple model of this interrelation between the economy and the environment, in which the economy is an embedded subsystem of the environment.
Ecological indicators are used to communicate information about ecosystems and the impact human activity has on ecosystems to groups such as the public or government policy makers. Ecosystems are complex and ecological indicators can help describe them in simpler terms that can be understood and used by non-scientists to make management decisions.
Ecological economics is an economic science that extends its methods of valuation onto nature in an effort to address the inequity between market growth and biodiversity loss. [68] Natural capital is the stock of materials or information stored in biodiversity that generates services that can enhance the welfare of communities. [ 82 ]