Solow meets Lovelock ”Economic growth in Daisyworld”

Engström, Gustav, and Anastasios Xepapadeas. “Solow meets Lovelock” Economic growth in Daisyworld." (2013).


This paper presents the first, to our knowledge, dynamic equilibrium model of a coupled
biota-climate system integrated with an economic growth model at the global scale. It
introduces this coupled system to aspects of resilience theory, which may be new to both
economists working on climate-economy models as well as natural scientists working on
models of climate and ecosystems. In particular, we show how the resilience of the coupled
system is affected by perturbations within both the human and natural system. Before
proceeding further, we believe that this paper is best motivated, by providing a short
historical background of model foundations and discussing the role played by the biota
in climate regulation at the outset.

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