SIMBIOSES: Modelling industrial metabolism in a multi-regional economic system

A model framework, SIMBIOSES, is presented which describes economic activities and related material, substance and energy flows in a multi-region and multi-sector economic system. The conceptual design of the framework is discussed in relation to current issues on “dematerialization” and “decoupling”. Three types of models to implement SIMBIOSES are discussed: a static equilibrium model, a dynamic optimisation model, and a system dynamics model. The static model determines the static equilibrium of extraction, production, recycling, and energy recovery from waste. The dynamic model determines the long-term investment decision that optimises total discounted utility of consumption. The dynamic model incorporates technological change, allocation of resources, and damage costs due to accumulation of substances in the environment. The system dynamic model generates endogenous economic growth and technology development and includes bounded rationality of economic agents.