Emergy measures of carrying capacity to evaluate economic investments

This paper outlines a method for determining carrying capacity for economic investments based on an emergy evaluation of the environmental resources o f a region. Using data from tourism development in Mexico and Papua New Gui nea, the concept of carrying capacity is related to intensity of developmen t, environmental support area, and the "fit" of economic development in loc al environments and economies. Emergy, a unit of resource use and work potential, is used to quantitativel y evaluate intensity of development. Emergy evaluation is briefly described and the evaluations of tourism used to further explain the methodology. Th e total annual resource use for the tourist resorts and the economies in wh ich they are embedded (including inputs of renewable and nonrenewable resou rces and purchased goods and services) was calculated and converted to emer gy units. The renewable resource base and an Environmental Loading Ratio (E LR), are proposed as a means for determining both long term and shortterm c arrying capacity respectively. The concept of sustainable development is re lated to the net emergy benefits that result from development. Expressed as a ratio of the amount of emergy received by the local economy to the amoun t that is exported (embodied in tourists), sustainability is suggested to r esult from a positive emergy trade balance.