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Brian Czech, Center for the Advancement of the Steady State Economy

A Critical Role for Physicists In Steady State Economics. Brian Czech, Center for the Advancement of the Steady State Economy . www.steadystate.org. Increase in the production and consumption of goods and services in the aggregate Typically expressed in terms of GDP

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Brian Czech, Center for the Advancement of the Steady State Economy

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  1. A Critical Role for Physicists In Steady State Economics Brian Czech, Center for the Advancement of the Steady State Economy

  2. www.steadystate.org

  3. Increase in the production and consumption of goods and services in the aggregate Typically expressed in terms of GDP Entails increasing population and/or per capita consumption Economic Growth

  4. Increase in the production and consumption of goods and services in the aggregate. Economic Growth

  5. Economy as 800-Pound Gorilla

  6. Coming out of the Corner and Growing

  7. Not Economic Growth

  8. Economic Growth

  9. Speaking of Wildlife…

  10. Urbanization Agriculture Water diversions (e.g., reservoirs) Recreation, tourism development Pollution Domestic livestock, ranching 247 205 160 148 143 136 Causes of Endangerment Czech et al. 2000. Bioscience 50(7):593-601.

  11. Mineral, gas, oil extraction Non-native species Harvest Modified fire regimes Road construction/maintenance Industrial development 134 115 101 83 83 81 Causes of Endangerment (cont.) Czech et al. 2000. Bioscience 50(7):593-601.

  12. Quick Note About Energy Abundance

  13. Economy of Nature Super-Carnivores Service Providers Consumers Producers (i.e., plants)

  14. Human Economy Light Manufacturing Heavy Manufacturing Service Providers Producers (i.e., ag/ext.)

  15. Human-Inclusive Economy of Nature Humans Service Providers Animals Plants

  16. With Economic Growth Human Economy Service Providers Animals Plants

  17. Macro-Allocation K Natural capital allocated to economy of nature GDP Natural capital allocated to human economy Time Czech 2000. Wildlife Society Bulletin 28(1):4-14.

  18. Fisheries Volume 30 Series Logo

  19. Therefore K To conserve biodiversity... GDP ...maintain steady state economy sufficiently below K. Time Czech 2000. Wildlife Society Bulletin 28(1):4-14.

  20. What might you say in response to this?

  21. “But what about technological progress?”

  22. Czech, B. 2008. Prospects for reconciling the conflict between economic growth and biodiversity conservation. Conservation Biology 22(6):1389- 1398. Also see… Supply Shock: Economic Growth at the Crossroads (Chapter 7)

  23. Solow model Lucas model Romer model Economic Growth Theory Y = ¦(K, L)

  24. 1956, “A Contribution to the Theory of Economic Growth” Technological progress “Manna from heaven” Solow Model Robert Solow

  25. 1990, “Endogenous Technological Change” Research and development Patenting Romer Model Paul Romer

  26. Macro-Allocation Revisited KU X natural capital allocable KT GDP Natural capital allocated to economy of nature Natural capital allocated to human economy Time

  27. Reconciliation Hypothesis KU X natural capital (still) allocable KT2 Capital-free growth zone KT1 Natural capital allocated to economy of nature GDP Natural capital allocated to human economy Time

  28. Fixed amount of energy, matter (E = mc2) Entropy; i.e. limits to efficiency in the economic production process Thermodynamics

  29. Help dispel myth of perpetual growth with implications from thermodynamics. Expand academic niche. Economics Ecology “Sustainability Science” Popularize findings and “don’t be such a scientist.” Critical Role for Physicists

  30. Source of Technological Progress • R&D

  31. Sources of Technological Progress R&D _______

  32. Sources of Technological Progress R&D Profits

  33. Profits

  34. Competitive Advantage R&D

  35. Sources of Technological Progress R&D Profits Catch-22?

  36. Sources of Technological Progress R&D Profits ????????????????

  37. Sources of Technological Progress R&D Catch-22? Profits Economies of scale ________________ ????????????????

  38. Increased efficiency but necessarily with increased production using existing technology Applicable at all levels in the economy (micro to macro and local to global) Economies of Scale

  39. Economies of Scale

  40. So, “What about technological progress?”

  41. Reconciliation Hypothesis KU X natural capital (still) allocable KT2 Capital-free growth zone KT1 Natural capital allocated to economy of nature GDP Natural capital allocated to human economy Time

  42. Hypothesis Refuted KU X/2 natural capital allocable KT2 X/2 re-allocated KT1 Natural capital allocated to economy of nature GDP Natural capital allocated to human economy Time

  43. Why Must We Have Physics – and Physicists – for Steady State Economics? Neoclassical vs. Ecological Economics

  44. Neoclassical Economy $ Business Household

  45. With Economic Growth $ Household Business

  46. “Natural resources originate from the mind, not the ground, and therefore are not depletable.” Robert L. Bradley, Jr., 2002 Julian Simon Award Acceptance Speech

  47. How did this happen? History and political economy…

  48. Henry George Progress and Poverty, 1879 George vs. land barons Incipient tax code at stake Establishment of American economics Y = ¦(K, L) The Corruption of Economics (Mason Gaffney, 1994)

  49. For more on this, google: “relic of anti-George” Czech, B. 2009. Ecological Economics 68:2193-2197. Or see chapter 4 of Supply Shock.

  50. Ecological economics movement Laws of thermodynamics Principles of ecology Ecological Economics Herman Daly

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