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Economics for Sustainability Professor Wayne Hayes 10/23/2013 V. 3.6 | Build #22 5/30/2014Professor Wayne Hayes1.

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Presentation on theme: "Economics for Sustainability Professor Wayne Hayes 10/23/2013 V. 3.6 | Build #22 5/30/2014Professor Wayne Hayes1."— Presentation transcript:

1 Economics for Sustainability Professor Wayne Hayes 10/23/2013 V. 3.6 | Build #22 5/30/2014Professor Wayne Hayes1

2 5/30/2014Professor Wayne Hayes2 Recall the Ecology, Economics, and Ethics Mission Statement:

3 How can the economy be harnessed to serve world sustainability? What makes this question so ironic is that the growth in the physical scale of the economy under the prevailing regime of economic globalization has depleted resources, destroyed ecosystems, overwhelmed natural waste disposal sinks, waged war on subsistence cultures, and produced shocking maldistribution of wealth and income. How, then, can the economy be turned around to reinforce sustainable development rather than to destroy ecosystems, resource endowments, and indigenous cultures? 5/30/2014Professor Wayne Hayes3

4 5/30/2014Professor Wayne Hayes4 This alchemy must be resolved to promote world sustainability.

5 A main goal of the course is: You must discover and articulate in writing ways to think practically and strategically about sustainability. This presentation helps achieve that goal. 5/30/2014Professor Wayne Hayes5

6 The goals of this session are: 1.Explain the basics of economics to sustainers. 2.Lay out an approach for harmonizing economics and sustainability. 5/30/2014Professor Wayne Hayes6

7 Table of Contents: Economics for Sustainability 1.Framing: the AnthropoceneAnthropocene 2.Understanding the economyeconomy 3.Brands of economicsBrands of economics 4.Ecological economicsEcological economics 5.Eco-EconomicsEco-Economics 5/30/2014Professor Wayne Hayes7

8 This presentation covers and extends the material in my article, Economic Strategies for SustainabilityEconomic Strategies for Sustainability. 5/30/2014Professor Wayne Hayes8

9 Part I: Framing We start by framing our approach to the intersection of economics and sustainability. The Anthropocene grounds us in the merging of Earth history with human history, with a focus on economic growth. Return to TOCReturn to TOC. 5/30/2014Professor Wayne Hayes9

10 We inhabit the Anthropocene. 5/30/2014Professor Wayne Hayes10

11 The physical growth of the economy undermines sustainability: depletes resources exceeds global and bioregional carrying capacity destroys ecosystems overwhelms natural waste disposal sinks alters the climate wages war on subsistence cultures produces shocking maldistribution of wealth and income. 5/30/2014Professor Wayne Hayes11

12 How can the economy be turned around to reinforce sustainability? This alchemy must be resolved to promote sustainability. Economics and sustainability must be harmonized. 5/30/2014Professor Wayne Hayes12

13 We must revisit the paradigm. Following in the tradition of the Brundtland Report, we must explore anomalies in the prevailing paradigm and revise that paradigm. However, paradigms always resist revision. 5/30/2014Professor Wayne Hayes13

14 We need an expanded and updated context. Adam Smith invented classical economics with his seminal The Wealth of Nations in The Industrial Revolution and the Anthroocene had just started. We need to update and expand this context to integrate ecology, economics, and society. 5/30/2014Professor Wayne Hayes14

15 The Industrial Revolution changed human relations with nature. AP World History web site AP World History web site provides an overview. The Open Door web site offers a history.Open Door web site 5/30/2014Professor Wayne Hayes15

16 The Industrial Revolution changed human social relations. The Teacher Link site offers a depiction of the Industrial Revolutions social condition.Teacher Link site 5/30/2014Professor Wayne Hayes16

17 Recall some indicators of the Anthropocene: 5/30/2014Professor Wayne Hayes17

18 See the original report for indicators See especially table 1 and figure 2, page 617 of the original article on the Anthropocene.original article on the Anthropocene 5/30/2014Professor Wayne Hayes18

19 What are the implications? Shanghai, /30/2014Professor Wayne Hayes19

20 Not everyone is happy with the economy. 5/30/2014Professor Wayne Hayes20

21 We need to examine the economy, the engine of the Anthropocene. 5/30/2014Professor Wayne Hayes21

22 How is economics defined? This standard definition of economics comes from the authoritative International Encyclopedia of the Social Sciences: "Economics... is the study of the allocation of scarce resources among unlimited and competing uses" (Vol ). I unpack the definition in my web site for the Economics of Sustainability.unpack the definition 5/30/2014Professor Wayne Hayes22

23 The factors of production must be used efficiently. The means of production, called resources, are neatly bundled among three broad categories: land, labor, and capital. These are the factors of production that must be efficiently applied to maintain production. The solution to the economic problem is thus rendered as a neutral and technical application of scarce resources to efficiently produce output, goods and services that can be confidently measured by price in the marketplace. The product of the economy by definition can only partially satiate the unlimited appetite for goods and services. The solution involves more production, called economic growth. 5/30/2014Professor Wayne Hayes23

24 The American economy is market-driven and growth-compelled. The national economy is measured as the monetized market value of all the goods and services produced in the nation in a calendar year. This is Gross Domestic Product, GDP. For more detail and definition, go to my web page defining web page defining economics 5/30/2014Professor Wayne Hayes24

25 Resolution: Situate the economy within society and ecology. 5/30/2014Professor Wayne Hayes25

26 Resolve the antagonism between ecology and economy. Economy and ecology share the same Greek root, Oikos, meaning the inhabited house or dwelling. 5/30/2014Professor Wayne Hayes26

27 Economy = Oikos + Nomos. The term economy derives from the Greek oikonomia, household management, based on oikos, "house," and nemein, "manage." 5/30/2014Professor Wayne Hayes27

28 Ecology = Oikos + Logos. Now consider the related term, ecology, which is defined as "the branch of biology concerned with the relations of organisms to one another and to their physical surroundings." Ecology also derives from the ancient Greek term oikos, but instead of management, focuses on logos, "reason" (Oxford English Dictionary). 5/30/2014Professor Wayne Hayes28

29 Which should come first, ecology or economy? Now, economy trumps ecology. But should we not understand our home, the Earth, before we muster the audacity to try to manage it? 5/30/2014Professor Wayne Hayes29

30 Consider ends and means. Like humanity, should ecology (nature) be considered as an end in itself? Doesnt economics refer to the efficient, if not always wise, allocation of means to fulfill ends? 5/30/2014Professor Wayne Hayes30

31 Therefore, shouldnt ecology precede economy? Consider this: The inversion of economy and ecology should be the first strategic move to harmonize ecology, economy, and society. 5/30/2014Professor Wayne Hayes31

32 Harmonize economics within ecology. 5/30/2014Professor Wayne Hayes32

33 Aristotle distinguished between Oikonomia: The real physical and social economy that produces and exchanges objects that contain use value. We can call this Main Street. Chrematistics : The monetized economy that thrives on trade and commerce for the sake of exchange value. We can call this Wall Street. (See Oikonomia and Chrematistics)Oikonomia and Chrematistics 5/30/2014Professor Wayne Hayes33

34 So, we ask: Has Wall Street trumped Main Street? 5/30/2014Professor Wayne Hayes34

35 5/30/2014Professor Wayne Hayes35 Has use value trumped exchange value? See Aristotle Economic Thought.Aristotle Economic Thought

36 5/30/2014Professor Wayne Hayes36 With this context in mind, we should examine how sustainable development provides another paradigm.

37 We now review sustainable development. Peter Montague has written a famous summary of the main points of the seminal book on sustainable development by Herman Daly, the founder of ecological economics, Beyond Growth.

38 Development > Growth Herman Daly changes the language and discourse away from growth and toward development. This shift is not merely semantics, but makes all the difference. Here it is: Development > Growth

39 What are the limits to growth? To Herman Daly, growth is the increase in the physical scale of the economy. That is, the material throughputs exceed two limits: 1.The availability of resources. 2.The capacity of sinks, where waste is disposed.

40 Does this sound familiar? Throughput is another word for the Materials Cycle. Daly does not explain the Materials Cycle but Annie Leonard does in her The Story of Stuff. Make this connection!

41 Growth pertains to throughputs in the Materials Cycle. 1.Resources are expended along the way, but begins with extraction. 2.Waste disposal is the end of the Materials Cycle. Annie Leonard fills in the vague notion of throughput with the more specific dynamics of the Materials Cycle.

42 Make the connection: throughput Materials Cycle. So doing gives specificity and meaning to the idea of throughput, central to ecological economics.

43 What brand of economics supports sustainability? We will consider three schools of thought: 1.Neo-classical economics, including contemporary neoliberalism 2.Ecological economics 3.Eco-economics. Return to TOCReturn to TOC. 5/30/2014Professor Wayne Hayes43

44 Neo-classical economics includes micro- and macro-economics. Neo-classical economics builds on the classical tradition that began with Adam Smith. Microeconomics examines the basic economic units, firms and consumers. Macroeconomics examines the aggregate economy as a unit of analysis. 5/30/2014Professor Wayne Hayes44

45 Microeconomics examines the market behavior of the firm and the consumer. Microeconomics extends Adam Smith, assuming perfect competition among small firms and independent consumers. Price theory and market analysis does not consider the reality of mammoth transnational corporations as the principal agent of economic globalization. 5/30/2014Professor Wayne Hayes45

46 Supply and demand within markets are basic to microeconomics. 5/30/2014Professor Wayne Hayes46

47 But Pigovian taxes can make a difference. Put a tax on a commodity that creates negative externalities: For an explanation, see biography of Pigou at Concise Encyclopedia of Economics.biography of Pigou 5/30/2014Professor Wayne Hayes47

48 Some countries advocate a fat tax on junk food. Denmark taxes unhealthy foods. See an argument for the so- called fat tax designed to promote sustainable foods.argument for the so- called fat tax 5/30/2014Professor Wayne Hayes48

49 Macroeconomics attempts to explain aggregate economic categories: Growth Consumption Unemployment Savings and investment Inflation Money and finance, including public finance The rates of interest The composition and level of imports and exports. 5/30/2014Professor Wayne Hayes49

50 The macroeconomy is linked by complex feedbacks. 5/30/2014Professor Wayne Hayes50

51 The U.S. economy is NOT in recession Although it sure feels like it is! 5/30/2014Professor Wayne Hayes51 Source: Floating Path, May 30, 2013Floating Path

52 Repeat: Not everyone is happy with the economy. 5/30/2014Professor Wayne Hayes52

53 Since September 2008, the economy has stagnated. 5/30/2014Professor Wayne Hayes53

54 Wages have fallen relative to GDP. 5/30/2014Professor Wayne Hayes54

55 Productivity has risen relative to wages. 5/30/2014Professor Wayne Hayes55

56 Corporate profits soar. 5/30/2014Professor Wayne Hayes56 Source: WSJ Market Watch, March 28, 2013WSJ Market Watch

57 Corporate profits have grown relative to wages. 5/30/2014Professor Wayne Hayes57 Source: The Daily Bail, Oct. 12, 2011The Daily Bail

58 Look at the Big Picture. 5/30/2014Professor Wayne Hayes58 Source: Connect the Dots,Connect the Dots

59 Note the correlation between energy and economic growth. 5/30/2014 Professor Wayne Hayes 59 Source: Our Finite World, July 18, 2012Our Finite World

60 IMF head sees lost decade. Ultimately, we could face a lost decade of low growth and high unemployment.... There are dark clouds gathering in the global economy, says IMF Managing Director Chrisine Lagarde (Bloomberg Businessweek, 11/9/2011). Bloomberg Businessweek 5/30/2014Professor Wayne Hayes60

61 Ask yourself: How does the national economy work for me? What is my future as a worker? a consumer? a borrower an investor? a recipient of externalities? a citizen? 5/30/2014Professor Wayne Hayes61

62 Economic growth is the engine of macroeconomics. In the world of macroeconomics, more is always better. No consideration is given to what is produced, so long as it enhances the total flow of goods and services. Prisons, bloated health care costs, responses to toxic spills, the repair of the damage caused by climate change all are "goods" that add to economic output--not "bads" which should be prevented. 5/30/2014Professor Wayne Hayes62

63 Neoclassical economics spawns economic globalization. The neoclassical brand projects economic globalization and the doctrine of neoliberalism to the world economy. Growth goes global! See my web-based presentation on economic globalization.web-based presentation on economic globalization 5/30/2014Professor Wayne Hayes63

64 Neoliberalism cannot be reconciled with sustainability. There exists no middle ground. The principles underlying each and the dynamics they drive are thoroughly incompatible. If neoliberalism triumphs, sustainability cannot be achieved, with drastic implications for future generations of humans and for the hospitality of the Earth for life. The stakes are high and the prospects grim. 5/30/2014Professor Wayne Hayes64

65 This conclusion is consistent with my Statement of Concern The Statement of Concern was listed in the schedule and was reviewed in class.Statement of Concern 5/30/2014Professor Wayne Hayes65

66 Ecological economics tells a different story. Return to TOCReturn to TOC. 5/30/2014Professor Wayne Hayes66

67 The founder of ecological economics is Herman Daly. 5/30/2014Professor Wayne Hayes67

68 Ecological economics recasts economics. Daly, still grounded in economics, expands the boundaries. The economy has three essential functions: 1.Allocation : efficiency of resource use 2.Distribution : fairness 3.Scale : appropriate size. The impulse is to get bigger, to grow in scale. 5/30/2014Professor Wayne Hayes68

69 Peter Montague summarizes Beyond Growth. Rachels Environment and Health News digests the essential arguments of Beyond Growth for sustainers to grasp. See Parts I, II, III, and IV.Parts IIIIIIIV 5/30/2014Professor Wayne Hayes69

70 One way to think about economics and sustainability is to define the problem this way: SY = VA / ( E + M ) where SY = sustainability VA = value added E = energy M = matter 5/30/2014Professor Wayne Hayes70

71 What is an externality and why does it matter? An externality is a consequence, positive or negative, of an economic activity that affects other parties without this affect being incorporated into market prices. Thus, market price deviates from the "true" social cost, sending the wrong signal. 5/30/2014Professor Wayne Hayes71

72 Microeconomics ignores third-party effects, called externalities. Instead of recognizing such market distortions as externalities, neoclassical economists claim to catch sight of Adam Smith's "Invisible Hand" of the unfettered market. Neoclassical economics is not only blind to environmental degradation and social disintegration but is enthralled in a mystical séance of market perfection, a reification exceeded only by neo- liberalism. 5/30/2014Professor Wayne Hayes72

73 Herman Daly comments on the trivialization of externalities by neoclassical economics: When increasingly vital facts, including the very capacity of the earth to support life, have to be treated as externalities, then it is past time to change the basic framework of our thinking so that we can treat these critical issues internally and centrally. (45) Daly, Herman E. Beyond Growth: The Economics Of Sustainable Development. Boston: Beacon Press, /30/2014Professor Wayne Hayes73

74 There are limits to the idea of externalities. Identifying externalities as a market failure is important but: 1.The political economic system, i.e. capitalism, staunchly resists internalizing externalities. 2.Beyond externalities is the essential issue of perverse subsidies and implicit industrial policy. 5/30/2014Professor Wayne Hayes74

75 There are limits to ecological economics. The transition from neoclassical economics to ecological economics is essential, but is not sufficient. Too much is left out of the story: Ecological economics must incorporate a theory of political economics. The Materials Cycle helps. 5/30/2014Professor Wayne Hayes75

76 Are externalities built into the business plan of corporations? The modern firm transcends Adam Smiths idyllic village shops and now includes immense and diversified global corporations. Their quest to maximize shareholder returns includes dumping costs onto others. The political muscle of such corporations protects external costs from being internalized and seeks government subsidies and bail outs. (See Annie Leonards The Story of Stuff for details.) 5/30/2014Professor Wayne Hayes76

77 Perverse subsidies form a hidden industrial policy 5/30/2014Professor Wayne Hayes77

78 Myers and Kent estimate subsidies at 5.6% of total global economy. The 2001 study found total subsidies to be about two billion dollars, or 5.6% of the prevailing world economy. (Myers, Norman, and Jennifer Kent. Perverse Subsidies: How Tax Dollars Can Undercut the Environment and the Economy. Washington, DC: Island Press, 2001.) Myers and Kent are scientists, not economists. Note that economists have not, to my knowledge, attempted to estimate the total costs of externalities or subsidies. 5/30/2014Professor Wayne Hayes78

79 Distribution is ethical and political, not formal economics per se. The socially acceptable distribution of the goods and the bads produced by the economy is ultimately political and ethical. Left to itself, a market society (capitalism) will produce large maldistributions in wealth and income. 5/30/2014Professor Wayne Hayes79

80 The market distributes according to economic class. In practice, the market-driven returns to capital, as profits and capital gains, accrue to the wealthy few, the capitalist class, while the returns to labor, wages and salaries, go to a multitude, the working class. This dynamic produces a class-based inequality of both wealth and income, which translates into differential political power. 5/30/2014Professor Wayne Hayes80

81 In practice, distribution is done through politics as well as economics. In economic theory, distribution is considered as an efficient return to factors of production (land, labor, capital). But distribution is influenced by tax policy and government expenditures. 5/30/2014Professor Wayne Hayes81

82 Remember the motto of the Medici family: Money to get power, power to protect money. 5/30/2014Professor Wayne Hayes82

83 The distribution of income in the USA is now a matter of concern. 5/30/2014Professor Wayne Hayes83

84 Business as usual continues the wealth distortions. The 1% has done well under President Obama, especially banks. especially banks Meanwhile, poverty in the U.S. is at a record high of 49 million Americans, 16%.poverty in the U.S. 5/30/2014Professor Wayne Hayes84

85 Scale is essential to ecological economics. But the growth of the economy is essential to orthodox economics, which never, ever questions scale. Close attention to scale is fundamental to ecological economics. 5/30/2014Professor Wayne Hayes85

86 Macroeconomics fosters growth: Bigger is always better. The appropriate size of the material economy is relative to nature's carrying capacity. This aspect of macroeconomics has been altogether disregarded by the dominant neoclassical school of economic thought. In sharp contrast, ecological economists such as Herman Daly have emphasized that scale is central to sustainability. 5/30/2014Professor Wayne Hayes86

87 Some, like Vandana Shiva, disagree: Instead of living up to its promise to alleviate poverty, economic growth actually undermined ecological stability, thereby destroying people's livelihoods and causing further poverty. Moreover, development strategies have been based on the growth of the market economy, even when large numbers of people operate outside of this network. The emphasis on the market economy has resulted in the destruction of the other economies of nature's processes and of people's survival, but this destruction is seen as nothing more than the 'hidden negative externalities' of the development process. (87) Shiva, Vandana. "Recovering the Real Meaning of Sustainability." Ed. Rajaram Krishnan, Jonathon M. Harris, and Neva R. Goodwin. A Survey of Ecological Economics. Washington, DC: Island Press, /30/2014Professor Wayne Hayes87

88 The distinction between development and growth is essential. Herman Daly says this well: Since physical growth is limited by physical laws, while qualitative development is not, or at least not in the same way, it is imperative to separate these two very different things. Failure to make this distinction is what has made `sustainable development so hard to define. With the distinction, it is easy to define sustainable development as `development without growth--without growth in throughput beyond environmental regenerative and absorptive capacities. (69) Daly, Herman E. Beyond Growth: The Economics Of Sustainable Development. Boston: Beacon Press, /30/2014Professor Wayne Hayes88

89 Growth in the physical scale of the economy must be distinguished from development. `Development refers to qualitative change, realization of potentialities, transition to a fuller or better state.... Sustainable development is development without growth in the scale of the economy beyond some point that is within biospheric carrying capacity. (167, highlights added) 5/30/2014Professor Wayne Hayes89

90 What is the appropriate scale of the economy? 5/30/2014Professor Wayne Hayes90

91 J. S. Mill defined a steady state economy in The seminal British philosopher and economist John Stuart Mill ( ) recognized that the economy could not grow indefinitely. He preferred a leisurely, aesthetic, and ethical stationary state to destruction of nature and diminished quality of life. See section IV.6.9 of Principles of Political Economy.section IV.6.9 of Principles of Political Economy 5/30/2014Professor Wayne Hayes91

92 An eco-economy must go beyond ecological economics Dalys ecological economics challenges neoclassical defects, especially 1.Externalities as a market failure 2.The distinction between sustainable development and physical growth 3.The inherent differences in distribution of goods and bads. But ecological economics still emerges from economics. An eco-economy broadens the scope even further and includes non-economists in the conversation. 5/30/2014Professor Wayne Hayes92

93 Ecological economics is still a field within formal economics. This means that ecological economics is committed to reforms based on ecological and resource constraints. But ecological economics does not question beyond the reforms, which are rarely, if ever, enacted. 5/30/2014Professor Wayne Hayes93

94 Frank Rotering offers provocative critiques of ecological economics: 1.Foundations of ecological economicsFoundations of ecological economics 2.Failure to confront the historical economic reality of capitalism.historical economic reality of capitalism 5/30/2014Professor Wayne Hayes94

95 So, ecological economics must be supplemented by eco-economics. That is, ecological economics should not be abandoned but should be extended. This draws on analysts who may not be formally trained in economics or true believers in its ontology and epistemology. 5/30/2014Professor Wayne Hayes95

96 Eco-economics emerges outside the domain of formal economics. Seeks a holistic and pluralistic outlook. Supports a symbiosis with nature and facilitates a restoration of ecosystems. Respects the diversity of human culture. Expands the time horizon to a long-term, generational perspective. Practices critical thinking. 5/30/2014Professor Wayne Hayes96

97 An ontological shift from ideal theory to grounded substance is needed. The School of Athens by Raphael 5/30/2014Professor Wayne Hayes97

98 Professor John Ikerd provides the common sense to grasp an eco- economy. Professor Ikerd, author of Sustainable Capitalism: A Matter of Common Sense, drives home his message in a short video.Sustainable Capitalism: A Matter of Common Sensehis message in a short video 5/30/2014Professor Wayne Hayes98

99 Some help comes from economic historians. Key insight comes from economic historians who grasp the larger dynamic and embed the economy in society and nature. We will examine the thought of Karl Polanyi Henri Braudel Gilbert Rist Joseph Schumpeter --- and his intersection with Karl Marx. 5/30/2014Professor Wayne Hayes99

100 To Karl Polanyi, economics is simply the way society meets its material needs. Karl Polanyi proposes substantive economics rather than formal economics. His empirical approach grounds economics within history. His approach is neither an ideal model based on presumptions about human behavior nor does he ignore nature and society. Discovering Polanyis substantivism is foundational to the intersection of economics and sustainability found here.Polanyis substantivism 5/30/2014Professor Wayne Hayes100

101 Formal versus substantive economics. Karl Polanyi proposed in The Great Transformation that the term 'economics' has two meanings: 1.The formal meaning refers to economics as the logic of efficient rational action and decision-making, as rational choice between the alternative uses of limited (scarce) means. 2.The substantive meaning presupposes neither rational decision-making nor conditions of scarcity. It simply refers to study of how humans make a living from their social and natural environment. The economy is embedded in nature and culture. 5/30/2014Professor Wayne Hayes101

102 Market economies must be embedded in society and nature. Markets are constructions which under neoliberalism destroy the social fabric and the natural environment within which markets are embedded. 5/30/2014Professor Wayne Hayes102

103 Markets thrive through a single process: Commodification 5/30/2014Professor Wayne Hayes103

104 5/30/2014Professor Wayne Hayes104

105 Eco-economics is basic to Economics of Sustainability See the syllabus and the sequence for Economics of Sustainability, SUST640.syllabussequence 5/30/2014Professor Wayne Hayes105

106 Natural capital and environmental services invite physical science. Return to TOCReturn to TOC. 5/30/2014Professor Wayne Hayes106

107 Look around you: Ecosystem services are everywhere. 5/30/2014Professor Wayne Hayes107

108 Ecosystem services and natural capital contribute to human well-being But natural capital and ecosystem services are not included in economic calculations such as GDP. 5/30/2014Professor Wayne Hayes108

109 Natural capital extends the core idea of capital as a producer of value. 5/30/2014Professor Wayne Hayes109

110 But what is capital? 5/30/2014Professor Wayne Hayes110

111 Capital is a social relation and a physical means of production. Marx: Accumulated labour that serves as a means to new production is capital. (Nature and Growth of Capital, 1867)Nature and Growth of Capital Capital is embedded labor produced under specific social relations. To Marx, natural capital is internally contradictory. Capital is an artifact and quite unnatural. 5/30/2014Professor Wayne Hayes111

112 What about consumption? 5/30/2014Professor Wayne Hayes112

113 Too much stuff! Read about an artists awareness of stuff.awareness of stuff. 5/30/2014Professor Wayne Hayes113

114 Dematerialization is essential. Page 1. Paperless offices substitute digits for pulp, dead trees. Example: Kindle. De-growth replaces the growth imperative. See the Barcelona Declaration, Example: Cradle to Cradle design.Barcelona Declaration Reductions in environmental footprints can be calculated. Service economy supersedes manufacturing economy. Example: Interface carpet company. Spiritual values replace material values. 5/30/2014Professor Wayne Hayes114

115 Dematerialization is essential. Page 2. Less matter and energy per unit of GDP, on the way since 1980on the way since 1980 Living with less, downsizing Decrease in scale 5/30/2014Professor Wayne Hayes115

116 Where does eco-economics lead us? Whats next? Following the clue of substantivism and recognizing the absence of a political economy here, the next step is to explore andd try to define a Strategic Sustainability. Stay tuned! 5/30/2014Professor Wayne Hayes116

117 Sachs provides an example of embedding economics. Fairness in a Fragile WorldFairness in a Fragile World by Wolfgang Sachs exemplifies several principles: 1.How to invert and to embed the economy within nature and culture. 2.How sustainable development can occur within non-OECD nations. 3.How to equitably harmonize technology, ecology, and society. 5/30/2014Professor Wayne Hayes117

118 Thank You! The End of the presentation, Economics for Sustainability By Professor Wayne Hayes 5/30/2014Professor Wayne Hayes118

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