Resources and Environmental Economics

Teaching AI with Vysikaylo’s Cumulative Political Economy: A Model of States as Social Cumulative-Dissipative Systems and Population Dynamics

2026-03-12T14:54:32+08:00

Purpose: This study applies Vysikaylo's paradigm of cumulative-dissipative systems (CDS), originally developed in physics, to the analysis of socio-economic and political processes in states. CDS theory describes open systems in which convective cumulation and dissipation of energy--mass--momentum fluxes (EMMF) occur. The purpose of this research is to reinterpret classical political economy through the CDS framework by modeling the processes of accumulation, transformation, and dissipation of human and economic potential in states using approaches derived from natural statistical sciences.
Methods: Political and economic phenomena--including the cumulation, transformation, and dissipation of capital and social resources--are modeled using mathematical analogies with physical CDS systems. The study introduces androgenic and gynogenic configurators to represent structural mechanisms in economic systems. Two generalized principles are applied: (1) Lomonosov's conservation law (later experimentally confirmed by Lavoisier), and (2) Clausius's Virial Theorem, according to which only part of the potential energy entering a partially open system remains within it while the rest dissipates into the surrounding environment. Dynamic Order Parameters (PDO) are proposed to quantify systemic dynamics in states viewed as living social CDS systems.
Results: The analysis suggests that similar mechanisms of co-organization observed in physical CDS systems also occur in socio-economic structures, including the circulation of capital, resources, and human potential. When the systemic balance between accumulation and dissipation is disrupted, structural crises, institutional instability, or state transformation may occur. The proposed PDO framework enables quantitative assessment of systemic stability and provides analytical tools for evaluating policies aimed at sustaining state development.
Conclusion: Adjustments in the distribution of national production between elites and the broader population, together with economic policy instruments such as customs duties and industrial protection measures, may contribute to the stabilization and revitalization of weakening states. The CDS-based framework also allows demographic and migration dynamics to be analytically evaluated. Case analyses of Russia, Spain, France, Germany, and the United States illustrate the applicability of the proposed approach. The integration of CDS theory with socio-economic analysis offers a potential foundation for further development of a systematic "science of law" governing social CDS systems.

Balancing the Scales: The Impact of Externalities on Environmental Markets and the Role of Government Policies

2026-03-02T18:35:56+08:00

This article explores the critical role of externalities both positive and negative in shaping environmental market dynamics and influencing resource allocation. Positive externalities such as clean energy innovation and public education often lead to underinvestment in beneficial activities due to unaccounted societal gains. Conversely, negative externalities like industrial pollution, deforestation, and overfishing result in market overproduction, imposing environmental and health costs on society. The article assesses various government interventions subsidies, public provision, patent systems, regulations, Pigouvian taxes, and market-based instruments like cap-and-trade to correct these market failures. Drawing on empirical evidence and theoretical frameworks, it evaluates the effectiveness of such policies in promoting sustainability, innovation, and equitable outcomes. Ultimately, the study emphasizes the necessity of well-designed and targeted government action to internalize external costs and benefits, enabling efficient, equitable, and environmentally sustainable market operations.

Global Oil Price Jumps and China’s New Energy Sector: New Evidence from Dynamic Volatility Models

2026-01-14T09:59:28+08:00

Intensifying geopolitical tensions have recently amplified fluctuations in global crude oil prices, where abrupt price jumps often transmit complex spillovers across energy markets. This paper investigates the asymmetric, heterogeneous, and lagged impacts of oil price jump shocks on China's new energy industry at both aggregate and sub-industry levels spanning the full upstream-midstream-downstream industrial chain. Using an ARMA-EGARCH-ARJI framework, global oil price dynamics are modeled to capture volatility clustering and discrete jumps, while expected/unexpected and lag structures are applied to examine asymmetric and delayed responses. The results reveal a unique asymmetric pattern of dual inhibition/promotion: both expected increases and decreases in oil prices suppress new energy returns, whereas unexpected jumps stimulate the sector. The effects are heterogeneous across sub-industries, with upstream sectors showing weaker sensitivity to anticipated shocks. Moreover, the influence of oil price jumps unfolds with notable time lags. These findings underscore the evolving interplay between market-oriented energy transformation and policy stability, offering implications to enhance the resilience and efficiency of China's new energy transition.

UN and BRICS+ in countering wars and conflicts to eliminate the energy crisis

2024-12-20T17:39:08+08:00

The 2022 energy crisis has been a major shock to the entire world. The world entered 2022 with expected (oil) or actual (coal) shortages. This was the beginning of the crisis. The environmental agenda gave way to increasing the security of energy supply. Both in terms of ensuring a smooth energy transition and being prepared for extreme scenarios. Today, the looming energy crisis seriously threatens the maintenance of normal society, including fuel for transport and logistics, electricity for lighting and work, and gas for our kitchens. The world is now facing a very serious energy crisis - a period of energy shortages and rising prices. This energy crisis is caused by a number of factors, including the disappearance of non-renewable energy sources such as oil. However, the most pressing factor is war. Energy shortages will increase costs for individuals, as many will not have enough energy to meet their basic needs. This will force people and governments of the UN and BRICS+ to look for solutions to save energy. The author of the article believes that the appropriate and effective solution to save energy is to counteract wars and conflicts and move to peaceful life.

A brief discussion on the coupling principle of positive and negative feedback in the economic system

2024-10-05T14:57:00+08:00

This study clarifies the concepts of “feedback”, “positive feedback”, and “negative feedback” and explains the philosophy of the coupling principle of positive and negative feedback. The evolution process of the system is the organic coupling of positive and negative feedback, and only the reciprocating cycle of positive and negative feedback can ensure the occurrence and existence of heterogeneous new things. In the economic system, the law of increasing returns corresponds to the positive feedback mechanism, whereas the law of diminishing returns corresponds to the negative feedback mechanism. This study briefly expounds on the differences in understanding between the law of increasing returns and diminishing returns, and the equilibrium and disequilibrium of economic operation in the economics circle, based on the histories of economic thoughts and social and economic forms. This study emphasizes that instead of dividing and opposing each other, the idea of static partial equilibrium and dynamic general nonequilibrium in epistemology can be united to solve this difference. Finally, this paper explains the essential relationship and compatibility between the law of diminishing returns and increasing returns from the characteristics, nature, and proportional changes of tangible and intangible factors of production. Applying the positive and negative feedback coupling principle can clarify the essential relationship between the law of diminishing returns and increasing returns. From the philosophical level and epistemological significance, it can bridge the fundamental differences between equilibrium and nonequilibrium theories, which in turn, can help realize the creative synthesis of economic theory.

Energy audit for biodiesel performance

2024-07-01T17:03:08+08:00

The performance and emission characteristics of the biodiesel -- diesel mix have been assessed using the energy audit method. The goal of this commentary is to get familiar with the examination of the performance characteristics of a diesel engine fuelled with biodiesel blends using energy audit technique. An examination of heat flow, brake-specific energy consumption, friction power, and smoke has been conducted. Efficiency can be enhanced by implementing this strategy, resulting in savings of both time and energy.

Farm digital tools: A systematic review of investments and environmental implications

2024-05-08T09:05:59+08:00

Farm-level investment in digital tools is often viewed as a necessary part of the agroecological transition. However, its actual relevance remains unclear due to currently ambiguous definitions of farm investments in general and equipment investments in particular. We conducted a systematic review of the farm investment literature to characterize the different categories of digital tools investments seen and to determine how often the environment is considered in this field of research. A total of 131 articles met our eligibility criteria and were subject to further analysis. First, we found that research on farm investments has looked at general farm investments, investments in combined factors of production, and investments in specific factors of production. Second, we discovered that there are four main investment categories for farm equipment (including digital tools). Third, we noted that few studies have addressed the environmental implications of investing in digital tools. Our findings emphasize that, to facilitate the agroecological transition, it will be important to promote broader strategies that encourage farmers to invest in digital tools.

The performance of mixed and penalized effects models in predicting the value of the ecological footprint of tourism

2024-03-19T10:31:26+08:00

In recent decades, the issue of ecological footprint (EF) in the world has become a serious anxiety among environmental stakeholders. This anxiety is more in top tourism attracting countries. The purpose of this research is the performance of mixed and penalized effects models in predicting the value of the EF of tourism in the top eight countries of tourism destinations. The World Bank and Global Footprint Network databases have been used in this study. Penalized regression and MCMC models have been used to estimate the EF over the past 19 years (2000-2018). The findings of the research showed that the amount of ecological footprint in China, France and Italy is much higher than other countries. In addition, based on the results, a slight improvement in the performance of penalized models to linear regression was observed. The comparison of the models shows that in the Ridge and Elastic Net models, more indicators were selected than Lasso, but Lasso has a better predictive performance than other models on ecological footprint. Therefore, the use of penalized models is only slightly better than linear regression, but they provide the selection of appropriate indices for model parsimoniousness. The results showed that the penalized models are powerful tools that can provide a significant performance in the accuracy and prediction of the EF variable in tourism attracting countries.

Biofuel certification

2023-04-14T17:29:04+08:00

Scope of biofuel certification is reviewed. It has been found that a biofuel certification is needed in the biofuels industry to authenticate biodiesel and its blends for use in diesel engines.In the world, a standard energy audit method is required to evaluate the feasibility of biodiesel blend as fuel and also harmonise the research of biodiesel as fuel. Leagal measures for biofuel certification is required. There are various obstacles and challenges for biofuel certification. Therefore, this paper addresses the legal measures, obstacles and challenges for biofuel certification.

Legal institutional inefficiency and water pollution problem in Bangladesh

2022-12-19T13:55:45+08:00

In recent years the economy of Bangladesh has increased significantly due to rapid industrialization. Despite economic prosperity, it causes serious damage to the environment by polluting water resources. Factors like discharging industrial effluents, urban runoff, and agricultural wastage are primarily responsible for polluting the water bodies in Bangladesh. This kind of pollution not only harms the environment but also severely affects human health, and in Bangladesh, nearly 80 percent of all diseases are related to water pollution, and arsenicosis is one of them. To prevent and control water pollution, the government has primarily enacted various laws and policies, including Environment Conservation Act 1995, Environment Protection Act (EPA) 1995, Environment Court Act 2000, and Bangladesh Water Act 2013. Despite numerous initiatives, legal loopholes, institutional weaknesses and lack of enforcement of Environment Impact Assessment (EIA) are the main obstacles to preventing and controlling water pollution in Bangladesh. Therefore, this paper addresses the legal shortcomings and functions of respective bodies in preventing and controlling water pollution.