Modeling the Interface Between the Social Geosystem and the Environment

Abstract

Abstract. This article deals with the context of a new rationality in modeling due to the climate agenda and the introduction of ESG-type principles. We studied a geosystem with homogeneous ecosystems that have a similar geological basement, relief mesoforms, and industrial-territorial complexes. They function in a unified institutional climate. In this case, the focus was on the mesoscale of the systems. The institutional order was based on the relationship between private and general institutions, and organizational features of regions. The Dixit-Stiglitz monopolistic competition model was used to account for financial performance and utility in an equilibrium industry with high nature intensity. What was new was the introduction of the concept of social brands associated with ecosystem services and used simultaneously to account for the utility and customization of the new economic order, as well as the introduction of a social discount rate (a discount factor). Social brands create a certain ‘green’ meaningful context in relation to natural capital and acting brands through social platforms. Thus, the society, through the mechanism of social brands, is offered a new format of interactions in which the structure of social brands becomes a priority in relation to the productive structure of the economy.
 Keywords: climate agenda, natural and social geosystems, utility, social discount, social brand