The Aggregation Problem: Implications for Ecological and Biophysical Economics

Blair Fix

EconStor Open Access Articles and Book Chapters, 2019, vol. 4, issue 1, 1-15

Abstract: This article discusses the aggregation problem and its implications for ecological economics. The aggregation problem consists of a simple dilemma: when adding heterogeneous phenomena together, the observer must choose the unit of analysis. The dilemma is that this choice affects the resulting measurement. This means that aggregate measurements are dependent on one's goals, and on the underlying theory. Using simple examples, this article shows how the aggregation problem complicates tasks such as calculating indexes of aggregate quantity, and how it undermines attempts to find a singular metric for complex issues such as sustainability. [Data and analysis for this paper are available at the Open Science Framework: https://osf.io/3smra/]

Keywords: aggregation; capital stock; GDP; natural capital; sustainability indices (search for similar items in EconPapers)
JEL-codes: C43 E01 P16 P48 Q01 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:190951

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