Abstract

The Limits to Growth pioneered the understanding that exponential growth could eventually lead to overshoot of the planetary boundaries no later than by mid-21st century. However, criticisms to the study included the lack the dynamics linked with the financial sector. Building on the World3 Limits to Growth model, Dr Pasqualino developed the Economic Risk Resources and Environment model, which objective was to include financial variables (e.g., resource prices, interest rates, debt, and others) and closed feedbacks with the limits proposed by the World3. The study confirms the results proposed by the Limits to Growth and extends that with new insights relative to the dynamics of resources prices, employments and general economic downturn using scenario analysis.