10.2190/0G88-360B-M9X1-W6M9 0G88360BM9X1W6M9 4 Environmental-Economic Modeling With Semantic Insufficiency and Factual Uncertainty 167 183 20020509 20020509 20020509 20020509 0G88360BM9X1W6M9.pdf http://baywood.metapress.com/link.asp?target=contribution&id=0G88360BM9X1W6M9 2 Konstantinos Bithas Peter Nijkamp Free University, Amsterdam, the Netherlands The present article presents an attempt at modeling an environmental-economic system when neither the semantic knowledge nor the statistical data are sufficient. For these cases the study introduces a new methodology of creating observations based on the knowledge of a selected interdisciplinary group of experts/scientists. This procedure as well as the processing of these "artificial observations" are systematically presented in the article. the application field and the limitations of the method are also discussed, followed by the presentation of an empirical illustration regarding water quality management. J. Van den Bergh, <i>Ecological Economics and Sustainable Development</i>, Edward Elgar, United Kingdom, 1996. E. Malinvaud, <i>Statistical Methods of Econometrics. Studies in Mathematical and Managerial Economics</i>, North-Holland, Amsterdam, 1980. L. C. Braat and W. F. Van Lierop, <i>Economic-Ecological Modelling</i>, North-Holland, Amsterdam, 1987. L. C. Braat and W. F. Van Lierop, <i>Economic-Ecological Models: A Background Picture</i>, Mimeo International Institute for Applied Systems Analysis, Laxetnburg, Austria, 1982. H. Theil, <i>Principles of Econometrics</i>, John Wiley, New York, 1971. J. Johnston, <i>Econometric Methods</i>, McGraw Hill, New York, 1963. M. Breeman, <i>Preface to Econometrics</i>, South Western Publishing Co., Cincinnati, Ohio, 1973. J. Chow, Tests of Equality between Sets of Coefficients in Two Linear Regressions, <i>Econometrica, 28</i>:3, pp. 591-605, 1960. G. Korosi, L. Matyas, and I. Szekely, <i>Practical Econometrics</i>, Avebury, England, 1992. P. Nijkamp, <i>Theory and Application of Environmental Economics</i>, North-Holland, Amsterdam, 1979. P. Nijkamp, P. Rietveld, and H. Voogd, <i>Multicriteria Evaluation in Physical Planning</i>, North-Holland, Amsterdam, 1990.