Task 7: Limits to Growth

Question 1

What is Kenneth Boulding’s (1966) concept of “Spaceship Earth”?

Answer 1

Boulding argues for viewing Earth as a closed system with finite resources, shifting the economic objective from increasing production to maintaining capital stock.

Question 2

How does Paul Ehrlich’s “The Population Bomb” (1968) relate population growth to environmental degradation?

Answer 2

Ehrlich (1968) asserts that unchecked population growth leads to environmental crises, advocating for (i) population control, (ii) increased agricultural output to ensure food security, (iii) reformed agricultural practices to include ecosystem restoration and (iv) improved management of non-renewable resources.

Question 3

What does the “Limits to Growth” (LtG, 1972) report conclude about human ecological footprints?

Answer 3

The 1972 LtG report warns that if current trends continue, human ecological footprints will exceed planetary limits (‘overshoot’), leading to inevitable contraction through either managed decline or collapse.

Question 4

What are Malthus’s (1798) preventative and positive checks on population growth?

Answer 4

Preventative checks involve family planning among wealthier communities, while positive checks include famine and disease affecting poorer communities.

Question 5

How did Malthus (1798) view the relationship between population growth and food production?

Answer 5

Malthus argued that population grows exponentially (‘geometrically’) while food production increases arithmetically. Thus, preventative and positive checks on population will ensure population is ‘kept down to the level of the means of subsistence’ (population principle).

Question 6

What is Herman Daly’s (2005) concept of “uneconomic growth”?

Answer 6

Uneconomic growth occurs when increases in production lead to greater disutility than utility, resulting in negative impacts on resources and well-being.

Question 7

What is Kate Raworth’s (2017) Doughnut Economics?

Answer 7

Doughnut Economics links human well-being with ecological integrity, and highlights simultaneous shortfalls in the social foundation with ecological overshoot of the planetary boundaries.

Question 8

How does ecological economics differ from traditional economic approaches?

Answer 8

Ecological economics views the economy as part of a larger ecosystem, prioritizing sustainability within Earth’s carrying capacity over economic growth.

Question 9

What does the I = PAT formula represent?

Answer 9

The formula states that environmental impact (I) is a function of population (P), affluence (A), and technology (T), though it has been critiqued for its simplicity.

Question 10

What are the key conclusions of the “Limits to Growth” report?

Answer 10

The report concludes that (i) human ecological footprints cannot continue expanding indefinitely, (ii) overshoot is likely because of delays in decision-making, (iii) contraction becomes unavoidable once limits are exceeded; (iv) forward-looking policy can prevent contraction; and (v) we must act as soon as possible.

Question 11

What does Herman Daly (2005) mean by “optimal macroeconomic scale”?

Answer 11

It refers to a level of economic activity that maximizes utility while remaining within ecological limits, balancing marginal utility and marginal disutility.

Question 12

How does the Genuine Progress Indicator (GPI) differ from GDP?

Answer 12

GPI combines economic growth with social and environmental factors, and evaluates a country’s ability to maintain welfare of at least the same levels in the future.

Question 13

What are some critiques of the “Limits to Growth” (1972) report?

Answer 13

Critics argue that economic growth is necessary for security in old age, income and employment; and that technological advancements will overcome resource constraints.

Question 14

What is the significance of “empty-world” vs. “full-world” economics according to Herman Daly (2005)?

Answer 14

Empty-world economics assumes abundant/unlimited resources; full-world economics acknowledges finite resources and emphasizes conservation over consumption.

Question 15

What role do preventative and positive checks play in Malthus’s (1798) theory?

Answer 15

Preventative checks limit population growth through family planning, while positive checks reduce population through famine and disease when resources are scarce.

Question 16

How does Kate Raworth (2017) propose rewriting economics textbooks?

Answer 16

Raworth (2017) advocates for integrating ecological considerations into economic models to address contemporary challenges and promote sustainability.

Question 17

Why is early action emphasized in the context of avoiding overshoot according to the “Limits to Growth” (1972)?

Answer 17

Early intervention is essential because delays in decision-making can result in ecological overshoot and inevitable contraction.

Question 18

What are some mechanisms proposed by ecological economists for incorporating ecological considerations into economic policies?

Answer 18

Proposed mechanisms include (i) physical accounting using satellites to evaluate environmental integrity over time, (ii) determining sustainable yields, (iii) assessing the absorptive capacity of ecosystems to determine acceptable pollution levels, and (iv) integrating natural capital depreciation into national income accounting.

Question 19

What does it mean for economic activity to remain within Earth’s carrying capacity?

Answer 19

It means ensuring that consumption and production do not exceed the natural regeneration rates of resources or degrade ecosystem integrity.

Question 20

How does ecological economics relate to strong sustainable development?

Answer 20

Ecological economics acknowledges Earth’s carrying capacity limitations, emphasizing the non-substitutability of natural capital. It integrates natural scientific concepts like biogeochemical cycles to inform environmental analysis. This approach prioritizes ecosystem integrity and advocates for conserving natural capital by limiting depletion and investing in renewal.

Question 21

What is the principle of natural capital sustainability in ecological economics?

Answer 21

The principle asserts that nations should aim to conserve their natural capital by limiting its depletion or degradation and investing in its renewal. This perspective emphasizes the need for economic activities to operate within ecological limits and recognizes that environmental integrity is essential for long-term sustainability.

Question 22

What are the key steps in analyzing environmental decisions from an ecological economics perspective?

Answer 22

Analysis begins by assessing the requirements for ecosystem integrity, followed by evaluating how current and future economic activities can accommodate ecological limits. This process ensures that economic development aligns with maintaining the health of ecosystems, ultimately supporting sustainable practices.

Question 23

What are the four key conclusions drawn from Doughnut Economics regarding human well-being and ecological integrity?

Answer 23

1. Human Dependence on Planetary Health: Emphasizes the need to sustain Holocene-like conditions for a stable environment.
2. Global Inequality: Illustrates simultaneous ecological overshoot and social shortfalls, pointing to substantial global inequality.
3. Policy Shift: Challenges policymakers to move from prioritizing economic growth to adopting regenerative and distributive practices that enhance well-being and planetary health.
4. Roadmap for Planners: Provides a roadmap of critical social and ecological focal areas for planners throughout the 21st century, guiding sustainable development efforts.

Question 24

Which previously-discussed concepts does Kate Raworth’s (2017) Doughnut Economics concepts link to?

Answer 24

Ecological economics (importance of economic activity remaining within ecological limits); biogeochemical cycles (through the inclusion of planetary boundaries); tragedy of the commons (planetary boundaries represent commons being degraded).