Using the Entropy Approach to Characterize the Environment as a Supplier of Resources
So far the flow of environmental goods (or the negative flow of entropy) from the ecological system into the economic system has not been closely specified. In the following we want to show how the problem of resource scarcity can be specified within the entropy approach. We start by taking note of the fact that the flow of environmental goods, carrying with it a negative flow of entropy into the economic system, contains also the raw materials needed for the manufacturing of the consumption and capital goods in the production sector. The supply of the economic system with raw materials from the environmental sector can therefore only be secured if the ecological system possesses the long-run capability of providing a negative flow of entropy into the economic system. This negative flow of entropy must correspond to the desires of the economic agents.
KeywordsVolume Versus Economic System Separation Process Factor Input Resource Extraction
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