1 / 6

Module 4: Ecological economics

Module 4: Ecological economics. Meaning: a new paradigm Transdisciplinarity Fundaments: limits to physical growth, ignorance and precautionary principle, multicriteria analysis. Externalities (mkt failure). “forcing” externalities into the mkt (pricing them). $. market.

glen
Download Presentation

Module 4: Ecological economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Module 4: Ecological economics Meaning: a new paradigm Transdisciplinarity Fundaments: limits to physical growth, ignorance and precautionary principle, multicriteria analysis

  2. Externalities(mkt failure) “forcing” externalities into the mkt (pricing them) $ market Module 4: From neoclassical economics to environmental economics…. Cost-Benefit Analysis Clear product Unclear process Environmental taxes... “Let them eat pollution” Total Economic Value CV, TC, Hedonic pricing... Many people believe that the conceptual foundations of conventional economics analysis are erroneous and that we now need a new economics –an ecological economics (Diesendorf and Hamilton)

  3. ...to ecological economics: a new paradigm View point of neoclassical economics View point of ecological economics Strong comparability of values Weak comparability of values implies Strong commensurabilityor weak commensurability Incommensurability applies Monocriterion evaluation Multicriteria evaluation “The best solution” “A best solution” Weak sustainability Strong sustainability

  4. Differences in emphasis between EE and ERE View point of neoclassical economics View point of ecological economics Optimal allocation of externalities Optimal scalePriority to efficiency Priority to sustainabilityOptimal welfare or Pareto efficiency Needs fulfilled and equitable distributionSustainable growth in abstract models Sustainable dvpm, globally and North/SouthGrowth optimism and “win-win” options Growth pessimis and difficult choicesDeterministic optimisation of intertemporal welfare Unpredictable co-evolutionShotr to meium-term focus Long-term focusPartial, monodisciplinary and analytical Complete, integrtive and descriptiveAbstract and general Concrete and specificMonetary indicators Physical and bioogical indicatorsExternal costs and economic valuation Systems analysisCBA Multidimensional evaluationApplied general equilibrim models withexternal costs Integrated models with cause-effect relationshipsMax of utility or profit Bounded individual rationality and uncertaintyGlobal market and isolated individuals Local communitiesUtilitarianism and functionalism Environmentla ethicsfrom van de Bergh: “Ecological economics: themes, approaches and differences with environmental economics”

  5. Fundaments and issues • Based on open system economics within a closed system: limits to physical growth • The precautionary principle: "The recognition that in the analysis of complex systems like the earth at all space and time scales, fundamental uncertainty is large and irreducible and certain processes are irreversible, requir[es] a fundamentally precautionary stance." (Getting Down to Earth, p.2) • “If we matter and then it doesn´t matter, it doesn´t matter; if we don’t matter, and then it matters, it matters” (Human Ecology, Human Economy) • Future generations: how to discount the future? >i  < future value of the environment  > resource use (and pollution) today implications on irreversibility and uncertainty/ignorance (precaution) • Exercise on nuclear energy waste • Multicriteria analysis in decision making • (example: weighted goal programming; NAIADE)

  6. Readings Barbier, E.: “Environmental valuation in developing countries” in Yearbook of environmental and resource economics Dieendorf and Hamilton (eds.): “Foundations of ecological economics” (chapter 2) + “The precautionary principle” (in chapter 3 of the book) Edward Jones, Davies, Hussain: Ecological Economics, an introduction. See “The ecological approah to environmental evaluation (Chapter 7) Giampietro, Mario. 2002: The Precautionary Principle and Ecological Hazards of Genetically Modified Organisms. AMBIO: A Journal of the Human Environment: Vol. 31, No. 6, pp. 466–470 Hanley, N.: “Cost-benefit analysis of envronmental policy and management” in van de Bergh, ch. 57 Janssen and Munda: “Multi-criteria methids for quantitative, qualitative and fuzzy evaluation problems” in van de Bergh, chapter 58. Martinez-Alier, Munda and O’Neill: Weak comparability of values as a foundation of ecological economics. Ecological economics (electonic journal) issue 26, pag 277-286 Munda, G.: Conceptualising and responding to complexity. Munda, G.: Environmental Economics, Ecological Economics and the Concept of Sustainable Development The Economist, February 8th, 1992: “Let them eat pollution” pag.82 Spash, C.: “The development of environmental thinking in economics” Van de Bergh, J.: “Ecological economics: themes, approaches and differences with environmental economics” Regional Environmental Change, 2001, vol.2 (1): 13-23

More Related