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ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

Dynamic Eco-industrial Model of Forest Rich Developing Nations Application to the Bolivian Forestry Sector and National Economy

Journal of Environmental Accounting and Management 3(1) (2015) 1--22 | DOI:10.5890/JEAM.2015.03.001

Jose-Luis Izursa; David R. Tilley

Department of Environmental Science & Technology, University of Maryland, College Park, MD 20742, USA.

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Abstract

We combined ecosystem simulation modeling with emergy accounting to develop the National Eco-industrial Forestry System (NEIFS), a spatially aggregated model for exploring the role that renewable (forests) and nonrenewable (natural gas) resources could play in the development of an underdeveloped nation. NEIFS was applied to simulate the Bolivian national economy considering the forestry and natural gas sectors under four different scenarios and for the time period between 2005 and 2205. The four scenarios (business-as-usual; increased domestic use; increased export of natural resources; and improved national industrialization) were simulated to observe the behavior of soil/carbon storage, wood reserves, natural gas reserve, national assets, money supply (M4), and total national debt. Results showed that people of Bolivia would enjoy twice the standard of living if its forest products sector were industrialized and it used more of its forest and gas domestically. Thus, simply increasing the exports of natural resources will not increase the well-being of Bolivians. Only when Bolivia’s forest products industry was restructured so that it processed the raw wood into manufactured products, did the country’s citizens see an increase in their well-being. Promisingly, NEIFS showed that this increase in standard of living must not come at the expense of depleting the forests. More simulations should be conducted with NEIFS to determine which rate of gas depletion can maximize the long-term well-beingof the nation’s citizens.

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