Aggregation of Dynamic Systems and the Existence of a Regeneration Function

In environmental economics, complex ecosystems are often represented by low-dimensional models. The question of whether the results of these models can be applied to a more complex reality leads to the investigation of an aggregation problem in a nonlinear dynamic setting. We show that restrictive assumptions are needed for aggregation and that the low-dimensional model has to be linear. On the basis of these results, we argue that the aggregation of complex ecosystems is often oversimplifying and that substantial gains can be expected from the use of more complex models.