Earth-Economy Modeling: Advances in Linking Economic and Ecosystem Models

Justin Andrew Johnson (), Rebecca Chaplin-Kramer (), Melissa Chapman (), Stephen Polasky () and Brooke Williams ()
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Justin Andrew Johnson: Department of Applied Economics, University of Minnesota, Saint Paul, Minnesota, USA
Rebecca Chaplin-Kramer: Global Science, WWF, San Francisco, California, USA
Melissa Chapman: Department of Environmental Systems Science, ETH Zürich, Zürich, Switzerland
Stephen Polasky: Department of Applied Economics, University of Minnesota, Saint Paul, Minnesota, USA
Brooke Williams: School of Environmental and Life Sciences, University of Newcastle, Callaghan, New South Wales, Australia

Annual Review of Resource Economics, 2025, vol. 17, issue 1, 209-239

Abstract: This article reviews a wide range of models that integrate ecological and economic systems, presenting Earth-Economy (EE) modeling as a general approach for sustainable management in these contexts. EE models combine global, general equilibrium economic models with high-resolution Earth system models and include two-way linkages between Earth systems and the economy, enabling data-focused decision support for sustainability. We conduct a systematic review of models related to this domain, create a typology of relevant models, and discuss the interconnections between them. We include a detailed definition of EE modeling and discuss how the relevant models can be integrated and extended to improve the comprehensiveness with which we model sustainability. This review shows both the importance of and associated challenges, but also the high demand, for this type of model.

Keywords: computable general equilibrium modeling; integrated assessment models; ecosystem services valuation; CGE; IAMs; climate-economy nexus; sustainable development; land-use change (search for similar items in EconPapers)
JEL-codes: C68 Q01 Q24 Q54 Q56 Q57 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1146/annurev-resource-013024-033043

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