Conceptual Principles of Physical Macroeconomics for Sustainable Development: Problems and Prospects
Hryniv L. S.

Hryniv, Lidia S. (2020) “Conceptual Principles of Physical Macroeconomics for Sustainable Development: Problems and Prospects.” The Problems of Economy 3:139–147.
https://doi.org/10.32983/2222-0712-2020-3-139-147

Section: Economic theory

UDC 65:502/504(075.8)

Abstract:
A new concept of forming physical macroeconomics for sustainable development has been suggested, which broadens the coordinates system of economics, as it takes into account the physical parameters of terrestrial biosphere in economic development. The object of study in physical macroeconomics is complex ecological and socio-economic systems (ESES), the core of which is made up by terrestrial ecological systems characterized by definite amount of soil productivity. Physical macroeconomics analyzes balance models of biophysical and cost estimates on the way to forming sustainable economy of ESES. The article also suggests a physical and economic paradigm of forming sustainable economy, which, unlike the current ones, takes into account natural sources of the first enrichment period in economy. It gives grounds for methodological changes in the theory of value and creating a breakthrough model of monetary economy to solve sustainability problems. Such up-to-date physical economy is an integral (synthesizing) science which uses a transdisciplinary approach to studying cause-and-effect relations in complex stationary ecological and socio-economic systems of various hierarchy levels. Its new conceptual models are based on a synthesis of physical, biological, geobotanic, geochemical, landscape science, biophysical and economic laws. A physical and economic model for sustainable development has been substantiated, which is based on the function method of the environmental offer of the Earth. This function determines the best possible natural capital volume of the Earth, which can be obtained having its targeted volume and the area of a given terrestrial ecological system. Due to the information given above, the author of the article has managed to substantiate and determine new physical and economic sustainable development indicators of ESES.

Keywords: biosphere stability, function of the environmental offer of the Earth, physical and economic modelling, physical macroeconomics, sustainable development.

Fig.: 5. Formulae: 6. Bibl.: 14.

Hryniv Lidia S. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Economics of Ukraine, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79000, Ukraine)
Email: lidiya.hryniv@gmail.com

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