Conservation of mass and instability in a dynamic economy-environment system

This paper considers a variant of the Neumann-Leontief-Sraffa general equilibrium models in the context of a jointly determined economy environment system subject to a conversation of mass condition. It shows that the conservation of mass contradicts the free disposal, free gifts, and non-innovation assumptions of such models; that an expanding economy will be associated with continuous disequilibrating change in the material transformations of both economy and environment; and that this change is uncontrollable through the price system.