-Science Talk

-Science Talk
“Small system dynamics models for economical and ecological
evaluation of political options”
by Prof. Dr. Bo Hu, Universität der Bundeswehr München
22 November 2016, 12:30 p.m.
Abstract
The next “Science Talk”, organized by the Institute of Systems Sciences, Innovation and Sustainability Research
(ISIS), will be given by Prof. Dr. Bo Hu (“Universität der Bundeswehr München”) on the topic “Small system
dynamics models for economical and ecological evaluation of political options”. His talk will take place on
Tuesday, 22 November 2016 at 12.30 pm in the meeting room of ISIS (Merangasse 18, 1st floor).
Duration: Approximately one hour including discussion.
The institute usually organizes three guest talks in each semester, covering its main research fields, i.e., systems
sciences, innovation and sustainability research.
There is no need to register for the “ISIS Science Talk” and participation is free of charge.
Bio-sketch
Bo Hu is professor of Management, esp. Information Systems at “Universität der Bundeswehr München“, Germany
and visiting professor at University of Graz. Prior to joining the “Universität der Bundeswehr”, he worked as a
software engineer and division leader, as Professor of Computer Science at the University of Applied Sciences in
Magdeburg, and as manager at KPMG Consulting. He studied at Munich University of Technology and holds a PhD in
physics from University Erlangen-Nürnberg, Germany.
His main fields of research are collaboration and decision support processes and systems in the areas of sustainable
business and social development.
Abstract
The developments of national economies in the euro zone differ significantly. Some countries have achieved both a
significant current account surplus and a rather low income inequality. In those countries debt reduction is correlated
relatively closely to the growth of the gross domestic product. In other countries this situation is exactly the opposite.
A small system dynamics model is used to show the relationship between income inequality and indebtedness along
with possible countermeasures. It shows that inclusive growth is the prerequisite for long-term sustainable finance.
Increasing the income of households to reduce the income gap seems to be a better option than austerity to achieve
the rebalancing of a national economy.
However, a substantial increase in the income of households is not easy to achieve. An extension of the small system
dynamics model mentioned above allows the analysis of the effects of an eco-tax and the spending in varying ways of
its revenues. Because of its redistributive effect the eco-tax contributes positively to a sustainable economic
development in the long run. Properly imposed and meaningful spent, eco-tax is an important instrument to achieve
inclusive ecological growth and sustainable finance and provides sufficient political alternatives for achieving both
economic and ecological goals.

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