Methodology and Findings

Abstract

Economic systems are open systems that use materials and energy provided by their surroundings for the production of goods and services that are desired by consumers. However, the use of materials and energy degrades the environment, thereby ultimately reducing the environment’s ability to provide goods and services for the economy. Degradation takes place in two distinct forms, the exhaustion of nonrenewable resource stocks and the release of waste products and radiant heat into the environment. Both forms of environmental degradation affect the structure and function of the ecosystem and are fundamentally interrelated.