Advancement Services June, 2008 Advancement Services June, 2008.
Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the...
-
Upload
dania-turton -
Category
Documents
-
view
216 -
download
0
Transcript of Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the...
![Page 1: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/1.jpg)
Changing the ParadigmThe Transition from Uneconomic Growth to Sustainability
The Centerfor the
Advancementof the
Steady State Economy
![Page 2: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/2.jpg)
• 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
![Page 3: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/3.jpg)
Definition – Paradigm
Thought pattern in a scientific discipline
Proverbial paradigm shift leads to big changes in the scientific worldview
![Page 4: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/4.jpg)
Ecosystem
Economy
Resourceextraction
Wasteproducts
Standard Model ofthe Economy
Growth Paradigm in Economics
Ecosystem
EconomyResourceextraction
Wasteproducts
Reality-Based EcologicalEconomics Model
![Page 5: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/5.jpg)
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
![Page 6: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/6.jpg)
Component 1 – Population
World Population (Millions)
![Page 7: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/7.jpg)
Component 2 – Consumption
U.S. Per Capita GDP (year 2000 dollars)
![Page 8: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/8.jpg)
Definition – Uneconomic GrowthGrowth of the macroeconomy that costs more than it is worth.
Value ($)
Quantity(units producedor consumed)
MarginalBenefit
MarginalCost
Q*
V*
V1C
Q1
V1B
Q2
V2C
V2B
![Page 9: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/9.jpg)
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 SustainabilityHold total capital (natural and human-built capital combined) constant. Assumes the two forms of capital are substitutes.
Strong SustainabilityHold natural capital constant. Assumes the two forms of capital are complements.
Economic growth converts natural capital into human-built capital and goods and services.
![Page 10: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/10.jpg)
• 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
![Page 11: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/11.jpg)
Thermodynamics
First Law of Thermodynamics: Conservation of mass and energy.Second Law: Entropy never decreases in an isolated system.
$$$
$$$
Standard model of themacroeconomic system
NaturalCapital Waste
Model of the macroeconomic system that accounts for the laws of physics
![Page 12: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/12.jpg)
Time
GD
P Natural capital allocatedto theeconomy
Naturalcapital allocatedtonature
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
![Page 13: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/13.jpg)
Cover of the Wildlife Society BulletinSpring 2000
![Page 14: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/14.jpg)
Ecological CarryingCapacity ScenariosIn
divi
dual
s
Time
K-selection
K
r-selection
![Page 15: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/15.jpg)
Economic CarryingCapacity ScenariosG
DP
Time
K
r-selection
K-selection
![Page 16: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/16.jpg)
Trophic Theory
Primary Producers(plants)
Consumers(herbivores)
Carn-ivores
Ecology(economy of nature)
Producers(agriculture,
extractive industry)
HeavyManufacturing
LightManufac.
HumanEconomy
![Page 17: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/17.jpg)
Trophic Theory
Plants
Animals
HumanEconomy
Human-InclusiveEconomy of Nature
Plants
HumanEconomy
With EconomicGrowth
Animals
![Page 18: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/18.jpg)
Limits to Growth - The Evidence
Source LimitsLimits on the quantity of natural resources that are raw materials for the economy.
Sink LimitsLimits on the ability of the environment to assimilate wastes generated by economic production.
![Page 19: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/19.jpg)
Source Limit - Overfishing
Daniel Pauly, UBC
Fishing down the food web
![Page 20: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/20.jpg)
r-selected economy
Source Limit – Resource Depletion
![Page 21: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/21.jpg)
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 CO2 will need to be reduced from its current 385 ppm to at most 350 ppm."
![Page 22: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/22.jpg)
Combined Sink/Source Limit
UrbanizationAgriculture Water diversionsRecreation, tourismPollutionDomestic livestock, ranchingMineral, gas, oil extractionNon-native species HarvestModified fire regimesRoad construction/maintenanceIndustrial development
247205160148143136134115101838381
Czech et al. 2000. Bioscience 50(7):593-601.
Causes of species endangerment
Top Dozen Causes
![Page 23: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/23.jpg)
Combined Sink/Source Limit
EcologicalFootprint
GlobalFootprintNetwork
![Page 24: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/24.jpg)
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.
![Page 25: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/25.jpg)
• 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
![Page 26: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/26.jpg)
AlternativesIf 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 thelong run.
![Page 27: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/27.jpg)
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.
![Page 28: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/28.jpg)
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?
![Page 29: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/29.jpg)
Characteristics of a SSE
1. Optimal Scale
2. Just Distribution
3. Efficient Allocation
4. Development and High Quality of Life
![Page 30: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/30.jpg)
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.
![Page 31: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/31.jpg)
Perfectly evendistribution
A bit of a skewed distribution
Distribution withlimited 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.
![Page 32: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/32.jpg)
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.
![Page 33: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/33.jpg)
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-consumptionand liquidation
of resources
![Page 34: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/34.jpg)
• 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
![Page 35: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/35.jpg)
Herman Daly’s Top Ten 1-5
1. 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.
![Page 36: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/36.jpg)
Herman Daly’s Top Ten 6-10
6. 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.
![Page 37: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/37.jpg)
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
![Page 38: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/38.jpg)
• 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
![Page 39: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/39.jpg)
Changing Perceptions
Spreading the information:
We can’t jumpstart a paradigm shift until people know about the new paradigm.
InroadsThe first text book for college courses on ecological economics came out in 2003. CASSE’s position on economic growth was formulated in 2004.
![Page 40: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/40.jpg)
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.
http://www.steadystate.org/CASSEPositionOnEG.html
![Page 41: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/41.jpg)
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.
http://www.steadystate.org/CASSEPositionOnEG.html
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.
![Page 42: Changing the Paradigm The Transition from Uneconomic Growth to Sustainability The Center for the Advancement of the Steady State Economy.](https://reader036.fdocuments.in/reader036/viewer/2022062515/56649c735503460f949259a9/html5/thumbnails/42.jpg)
www.steadystate.org
541-602-3097
The Steady State Economy
Take a Position!
Thank you.