unit 2 part 5 Flashcards
ecological assumption and goal
is to achive an economy that is ethical and sustainable (for the enviroment)
Modern Environmental movment
-began with the social movments of the 1960s and 1970s
-Public acknowledgment of emerging environmental questions and problems
Seminal works in
contemporary environmentalism
-rachel carson
-donella meadows
-brundtal report
the assisi declaration on nature(1986)
5 major religions came together to talk about the enviroment
scientist warning to humanity
even scientists made a statment that things can not continue like we are
f ours is truly an intelligent knowledge-based society, why has the political response to a global threat been so limited and ineffective?
-economic greed:
-economic interest come first
-statues quo bias:is hard to change specially if it brings good thing to live like we are living
-discounting of the future :we think is not gonna happen during our lifetime
-people don’t belive it
-some changes are not obvious
what is economic growth
-increase in the market value($) of final goods and services produced in an economy
-measured in gross dosmetic porduct(GDP)
gdp growth
economy has growned a lot!(globaly)
Assumption of current economic paradigram
-economic growth can continue indefinetly
-resources are treated as unlimited
-great faith in human creativety,technology,efficency
-economic growth seen as an end in itself
-more growth is always better
ecological economics
-emerged in the 70s-80s
-critiques neoclassical economics(and ecology)
-tries to briges ecology and economics
-key thinkers(Herman Daly,Robert Costanza,William Rees)
-influence is still marginal
-not enviromental economics
key questions
-Should economic growth be the dominant
goal for our economy and society?
What are the ‘costs’ of economic growth?
What is the optimal size for the economy? How
large should it become?
ecological economics worldview
is impossible to see the economy without people/society but ecosphere is so important
difference betweenb ECOLOGICALECONOMICS
WORLDVIEW and NEOCLASSICAL ECONOMICS
WORLDVIEW
ecological is almost never metion or just seperate from nature
Ecological Economics:
Trade-offs and biophysical limits to growth
one thing grows while we lose something else
Uneconomic growth:
Growth that creates more costs than benefits
- we think we are growing because we push away the lostes like loosing the enviroment-which is invisivel for the regular economic view
from an empty to a full world economy
we still thinking the way we were in the 1800s even though we are tody where we have fewer resources
Why do our national accountants fail to substract natural
capital consumption in calculating [national] income?
Neoclassical economics does not count natural capital consumption as a cost because in its preanalytic vision
[paradigm] of the world, nature is not scarce
is economic growth a means or an end?
we treat as an end (do thing to encreses),,
there is idea that economic growth brings happiness and wealth BUT ecological economist belives is a mean to an end so what is the end happiness?they also belive economic growth is a temporary phase of our economics
evidence
until you get to a point more growth does not make you much more happy
their some countries that doesn’t have as much economic growth but are as happy or more happy then other that have more growth
gdp
is greate to meausre economic growth but not for welfare
economic growth does not mean happiness although in society it does
key points assumptions of ecological economics
-economy is embeded in a larger,but non-growng system
economic growth
indicates how our society is doing, and it shows what we value
1.Promethean growth
-economic school:neoclassical economics
-governance model:capitalist market economy
key ideas:
-labour,capital and technology drive growth
-enviroment/natural resoureces is not mantioned
2.green growth (we are kinda here)
-economic school:enviromental economics
3.Agrowth
gdp does not differentiate good growth or bad growth
gpi :social,economic,enviromental progress/quality of life
-enviroment problems are consider costs
4-steady state economy
