Presentation is loading. Please wait.

Presentation is loading. Please wait.

Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.

Similar presentations


Presentation on theme: "Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy."— Presentation transcript:

1 Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy

2 Definitions The Conflict between Economic Growth and the Environment Theoretical Framework Empirical Evidence Steady State Economy, the Alternative to Economic Growth Policies and Institutional Changes for the Transition Getting Started with the Paradigm Shift Outline

3 Definition – Paradigm Thought pattern in a scientific discipline Proverbial paradigm shift leads to big changes in the scientific worldview

4 Ecosystem Economy Resource extraction Waste products Standard Model of the Economy Growth Paradigm in Economics Ecosystem Economy Resource extraction Waste products Reality-Based Ecological Economics Model

5 Definition – Economic Growth Increase in the production and consumption of goods and services (typically expressed in terms of GDP) facilitated by increasing: –population –per capita consumption Not the same as economic development

6 Component 1 – Population World Population (Millions)

7 Component 2 – Consumption U.S. Per Capita GDP (year 2000 dollars)

8 Definition – Uneconomic Growth Growth of the macroeconomy that costs more than it is worth. Value ($) Quantity (units produced or consumed) Marginal Benefit Marginal Cost Q*Q* V*V* V 1C Q1Q1 V 1B Q2Q2 V 2C V 2B

9 Definition – Sustainability Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Basic human needs and the world’s poor Limits imposed by technology and social organization - Brundtland Commission Weak Sustainability Hold total capital (natural and human-built capital combined) constant. Assumes the two forms of capital are substitutes. Strong Sustainability Hold natural capital constant. Assumes the two forms of capital are complements. Economic growth converts natural capital into human-built capital and goods and services.

10 Definitions The Conflict between Economic Growth and the Environment Theoretical Framework Empirical Evidence Steady State Economy, the Alternative to Economic Growth Policies and Institutional Changes for the Transition Getting Started with the Paradigm Shift Outline

11 Thermodynamics First Law of Thermodynamics: Conservation of mass and energy. Second Law: Entropy never decreases in an isolated system. $$$ Standard model of the macroeconomic system Natural Capital Waste Model of the macroeconomic system that accounts for the laws of physics

12 Time GDP Natural capital allocated to the economy Natural capital allocated to nature K C a r r y i n g C a p a c i t y E c o n o m i c G r o w t h Competitive Exclusion

13 Cover of the Wildlife Society Bulletin Spring 2000

14 Ecological Carrying Capacity Scenarios Individuals Time K-selection K r-selection

15 Economic Carrying Capacity Scenarios GDP Time K r-selection K-selection

16 Trophic Theory Primary Producers (plants) Consumers (herbivores) Carn- ivores Ecology (economy of nature) Producers (agriculture, extractive industry) Heavy Manufacturing Light Manufac. Human Economy

17 Trophic Theory Plants Animals Human Economy Human-Inclusive Economy of Nature Plants Human Economy With Economic Growth Animals

18 Limits to Growth - The Evidence Source Limits Limits on the quantity of natural resources that are raw materials for the economy. Sink Limits Limits on the ability of the environment to assimilate wastes generated by economic production.

19 Source Limit - Overfishing Daniel Pauly, UBC Fishing down the food web

20 r-selected economy Source Limit – Resource Depletion

21 Sink Limit – Climate Change “If humanity wishes to preserve a planet similar to that on which civilization developed and to which life on earth is adapted, paleoclimate evidence and ongoing climate change suggest that CO 2 will need to be reduced from its current 385 ppm to at most 350 ppm."

22 Combined Sink/Source Limit Urbanization Agriculture Water diversions Recreation, tourism Pollution Domestic livestock, ranching Mineral, gas, oil extraction Non-native species Harvest Modified fire regimes Road construction/maintenance Industrial development Czech et al Bioscience 50(7): Causes of species endangerment Top Dozen Causes

23 Combined Sink/Source Limit Ecological Footprint Global Footprint Network

24 Final Thought on Limits A challenge from the realm of common sense… Can you cite examples of Earthly things that continuously grow without approaching a limit? Even the biggest of the big have limits.

25 Definitions The Conflict between Economic Growth and the Environment Theoretical Framework Empirical Evidence Steady State Economy, the Alternative to Economic Growth Policies and Institutional Changes for the Transition Getting Started with the Paradigm Shift Outline

26 Alternatives If the economy is not growing, what can it do? (1)Shrink. (2) Remain about the same size. Option 1 = recession or depression, neither of which is sustainable over the long run. Option 2 = steady state economy, which is sustainable over the long run.

27 What is a Steady State Economy? Stable production and consumption of goods and services; Indicated by stable GDP; Stabilized population; Stabilized per capita consumption; Stabilized throughput; and Constant stocks of natural and human-built capital.

28 What’s the Bottom Line? A steady state economy is not a failed growth economy. Remember the paradigm. Freezing in the dark under a harsh communist regime? Does a steady state economy mean… Some kind of hippy fantasy about returning to a bygone era that no longer exists? A luddite world where we each farm our own plots of land using nothing but sticks for tools?

29 Characteristics of a SSE 1.Optimal Scale 2.Just Distribution 3.Efficient Allocation 4.Development and High Quality of Life

30 Optimal Scale Technical: marginal benefits of growth = marginal costs Conversational: Finding the sweet spot. Applying the Goldilocks principle – not too big, not too small, just right! A Few Elements of Sustainable Scale Elimination of the boom and bust cycle. Restoration of natural capital and ecosystem services. Secure stocks of natural capital. Maintenance and improvement of built capital.

31 Perfectly even distribution A bit of a skewed distribution Distribution with limited inequality Just Distribution A Few Elements of Just Distribution Equitably assigned property rights for common resources. Equal access to the commons. Equitable distribution of common wealth. Limits to private income and wealth inequality.

32 No market to allocate goods and services Market with stewardship of commons Unchecked market to allocate goods and services Efficient Allocation A Few Elements of Efficient Allocation Inclusion of non-market values. Evolution of sectors of the economy. Efficient use of capital.

33 Development and Quality of Life A Few Elements of Development and Quality of Life High life expectancy. Low infant mortality. Meaningful work and jobs. Increased leisure time. Green technologies and systems. Health, time, prosperity, and community Poverty, illness, and unemployment Over-consumption and liquidation of resources

34 Definitions The Conflict between Economic Growth and the Environment Theoretical Framework Empirical Evidence Steady State Economy, the Alternative to Economic Growth Policies and Institutional Changes for the Transition Getting Started with the Paradigm Shift Outline

35 Herman Daly’s Top Ten Employ cap-auction-trade systems for basic resources. 2.Institute ecological tax reform. 3.Limit the range of inequality in income distribution. 4.Shorten the working day, week, and year. 5.Re-regulate international commerce.

36 Herman Daly’s Top Ten Limit the scope of the International Monetary Fund, World Bank, and World Trade Organization. 7. Move to 100% reserve requirements instead of fractional reserve banking. 8. Stop treating the scarce as if it were not scarce, and the non-scarce as if it were scarce. 9. Stabilize population. 10. Reform national accounts to be able to measure when growth is economic and when it is uneconomic.

37 Institutional Arrangements The Market Employment Regulated banking systems Regulated international trade Stock markets and investments Thriving local economies The Commons Sector Property rights for commons Trusts for managing the commons The Public Sector Governance for sustainability Ecological taxation Competent regulatory agencies The Private Sector Ecologically sound business operations Redesigned corporate charters Limited demand creation

38 Definitions The Conflict between Economic Growth and the Environment Theoretical Framework Empirical Evidence Steady State Economy, the Alternative to Economic Growth Policies and Institutional Changes for the Transition Getting Started with the Paradigm Shift Outline

39 Changing Perceptions Spreading the information: We can’t jumpstart a paradigm shift until people know about the new paradigm. Inroads The first text book for college courses on ecological economics came out in CASSE’s position on economic growth was formulated in 2004.

40 The CASSE Position Carefully crafted position statement on economic growth. Based on years of study in the fields of ecology and economics. Sanctioned by many leaders in sustainability science. Individual signatures for demonstrating widespread understanding of the conflict between economic growth and environmental protection. Organizational endorsements and adoption of similar positions by professional societies to build a foundation of advocacy.

41 The CASSE Position The Whereas Clauses Define economic growth, how it occurs, and how it is measured. Point out that economic growth is a top policy goal, there are limits to growth, and growth has negative effects. The Therefore Clauses Recognize the conflict between growth and the environment. Identify the steady state economy as a positive alternative to growth. Recognize that other nations may still pursue growth to meet needs.

42 The Steady State Economy Take a Position! Thank you.


Download ppt "Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy."

Similar presentations


Ads by Google