Formalising insights from ecological economics in a growth model

Abstract: This thesis is an attempt to formalise some of the insights of ecological economics in mathematical form. It seeks to develop a model for economic growth in which natural resources are complements to labour and capital in production. The model is centred around the role of entropy in production. The model also separates between the material and the intangible dimensions of production, because they are subject to different dynamics when it comes to natural resources. The results are implications which help explain historic growth and predict future growth. Qualitative development of the intangible dimension is found to be a steady state phenomena while quantitative growth of the material dimension is found to be a transition phenomena.