Peak oil occurs not when there are no more reserves, but when it is too expensive to bring them to the surface. The diagram describes a dynamic where peak oil leads to oil prices that are too low for oil companies to produce oil. There are two keys to understand this counterintuitive situation. First, it is important to realize that without energy (oil) no economic activity can take place. Second, when supplies of oil become scarce, non-elite workers  - because of the contraction of the economy - will lose their jobs or suffer salary cuts. This will make goods containing (or using) oil products too expensive for the masses. Demand for those products (most things on the market) will decline and with it demand for oil - oil prices will drop too low for oil companies to produce oil!

These ideas stem from Gail Tverberg's blog: 'Our Finite World'. https://ourfiniteworld.com/

Model description:

This model is designed to simulate the outbreak of Covid-19 in Burnie in Tasmania. It also tell us the impact of economic policies on outbreak models and economic growth.

 

Variables:

The simulation takes into account the following variables and its adjusting range: 

 

On the left of the model, the variables are: infection rate( from 0 to 0.25), recovery rate( from 0 to 1), death rate( from 0 to 1), immunity loss rate( from 0 to 1), test rate ( from 0 to 1), which are related to Covid-19.

 

In the middle of the model, the variables are: social distancing( from 0 to 0.018), lock down( from 0 to 0.015), quarantine( from 0 to 0.015), vaccination promotion( from 0 to 0.019), border restriction( from 0 to 0.03), which are related to governmental policies.

 

On the right of the model, the variables are: economic growth rate( from 0 to 0.3), which are related to economic growth.

 

Assumptions:

(1) The model is influenced by various variables and can produce different results. The following values based on the estimation, which differ from actual values in reality.

 

(2) Here are just five government policies that have had an impact on infection rates in epidemic models. On the other hand, these policies will also have an impact on economic growth, which may be positive or negative.

 

(3) Governmental policy will only be applied when reported cases are 10 or more. 

 

(4) This model lists two typical economic activities, namely e-commerce and physical stores. Government policies affect these two types of economic activity separately. They together with economic growth rate have an impact on economic growth.

 

Enlightening insights:

(1) In the first two weeks, the number of susceptible people will be significantly reduced due to the high infection rate, and low recovery rate as well as government policies. The number of susceptible people fall slightly two weeks later. Almost all declines have a fluctuating downward trend.

 

(2) Government policies have clearly controlled the number of deaths, suspected cases and COVID-19 cases.

 

(3) The government's restrictive policies had a negative impact on economic growth, but e-commerce economy, physical stores and economic growth rate all played a positive role in economic growth, which enabled the economy to stay in a relatively stable state during the epidemic.

Cutbacks can have a counterintuitive effect. The government knows precisely how much it custs in spending. However, it cannot know the extent to which tax revenues shrink in a non-linear complex economic system as the economy contracts. In addition, the treasury has to spend more as automatic stabilizers activate and payments are made to an increasing number of unemployed workers. The effect of this is that initially the deficit shrinks, but later it rises as tax revenues fall short of expectations and more spending takes place. The ironic part is that often the very indicator that promted austerity measurs, the defcit to GDP ratio, becomes worse than it was at the outset. We could observe this in Spain and Portugal where planned deficits have been repeatedly missed, as austerity measures  (fiscal cutbacks) were introduced to deal with the effects of  the 2008 financial crisis.

Investigations into the relationships responsible for the success and failure of nations. This investigation was prompted after reading numerous references on the subject and perceiving that *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Acemoglu and Robinson seem to make a great deal of sense.

This is a reconstruction of the SIMM model presented in Chapter 2 of Feedback Economics (Contemporary Systems Thinking)

This simple model describes wealth accumulation. The value in income is described by the following simple equation:

About the Model 

This high-level simulation model presented by Jay Forrester in his book World Dynamics, simulates socio-economic-environmental world system. The world Model was created in a time where pollution and other negative effects of industrialization and economic growth started to become recognized in 1970. For this exam purpose, we have rebuilt the model to do some experiments and analyze the results. 

Explanation of the Model

​Climate Sector Boundary Diagram By Guy Lakeman

ABOUT THE MODEL

This is a dynamic model that shows the correlation between the health-related policies implemented by the Government in response to COVID-19 outbreak in Burnie, Tasmania, and the policies’ impact on the Economic activity of the area.

 ASSUMPTIONS

The increase in the number of COVID-19 cases is directly proportional to the increase in the Government policies in the infected region. The Government policies negatively impact the economy of Burnie, Tasmania.

INTERESTING INSIGHTS

1. When the borders are closed by the government, the economy is severely affected by the decrease of revenue generated by the Civil aviation/Migration rate. As the number of COVID-19 cases increase, the number of people allowed to enter Australian borders will also decrease by the government. 

2. The Economic activity sharply increases and stays in uniformity. 

3. The death rate drastically decreased as we increased test rate by 90%.

• This model examines how sustainable consumerism is from social, economic, and environmental aspects. The question in focus is "How will our second-hand clothing donations affect communities in developing countries, specifically Kenya?"

A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy.  Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

A system diagram for the Mojave Desert including example socio-economic factors for an assignment at OSU- RNG 341.

The recent moratorium on deep-sea drilling will reduce the supply of oil. But the world-wide trend is an ever increasing demand for it. This simple CLD  tries to illustrate the dampening effect on demand and on economic activity of diminishing oil supplies and of rising prices: oil prices  affect virtually all products and especially agricultural production. As it becomes more and more difficult to extract oil, prices must rise. At the moment the global recession counteracts this effect, but the recession will not last forever. Is it too early to speak of Peak Oil?

This model demonstrate how the exisitng tested COVID cases effects economic recovery via goverment intervenes.

I have tried to capture the unemployment benefits budget in a causal loop diagram. You can make this as extensive as you want, but I have tried to focus on how unemployment benefits are financed and on the main determinants of expenditures and income. I was not (yet) able to 'close te loop' - to build the diagram up from feedback cycles. 
The diagram is in Dutch.

This model simulates the economics of buying a home. It was created to compare buying a home against using investment returns to pay for rent. According to Micheal Finke, house prices typically run 20x monthly rental rates.