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FLOW ANALYSIS AND ECONOMIC MODELLING THEORY
Abstract
This study shows how material and immaterial flows can be analysed. The basis for the analysis is the equality principle and its mathematical expression the EUROPE model (the model for Efficient Use of Resources for Optimal Production Economy) which creates economic incentives to improve nature, advance the technological standard and increase profits. Particularly, the flows of cargo transportation, mega city supplies, long distance water transportation and various substance flows are described. The theoretical findings show viability for in general improving material and immaterial flows as well as the economy, the technological standard and the living conditions in the geographical regions in question. It is concluded that The EUROPE model based on the equality principle is in theory applicable on transportation policy issues, supplies to major cities, long distance water supply and important substance flows. In general, it is recommended to apply the EUROPE model when undertaking projects involving: transportation, mega city supply; transportation of water over long distances, and; flows of various substances.
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