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ENVI524 (Subject) / Part 3 (Lesson)
- Ecological Economics more concern with ecological and social aspects, e.g. ecological limits, health & institutional aspects more weight given to future generations (pure time preference discount rate) Importance of system effects and failures / co-benefits more recognition of other disciplinary insights, e.g. psychology, sociology, …
- Institutions and Governance Institutions: whether the “rules of the game” (North, 1990) or “settled habits of thought common to the generality of men” (Veblen, 1909) – they are clearly socially constructed Governance: the process by which institutions guide / exert control (‘steering’) Institutions coevolve with technologies, social values etc. Institutions include orgs, laws, norms, ….from the RMA to CBA Difficult to see how firmly embedded the status quo is Institutions are vital to ensure the collective interest is articulated, and to resolve conflicts among individual interests
- Evolutionary Economics current human impact on the environment is far beyond the level that can be maintained without causing profound changes conventional ‘progress’ degrades human society into inequality Frameworks help understand change in complex socialecological system Gowdy: Coevolutionary ecol. economics Constanza: Evolution of Institutions (A theory of socio-ecological system change) Geels: Socio-economic transitions (reformist, revolutionary, reconfiguration)
- Strengths of Economics for Policy provides an ‘overview’ essential for policy basis for CBA, and for commensuration of advantages/disadvantages Utilitarianism: intuitive pragmatic philosophy for advancing the common interest while allowing individuals to further their own individual interests flexible, pragmatic and not wedded to growth as such supports the market as it is generally effective: delivers’ valued outputs & low costs of living
- Weaknesses of Economics for Policy the ‘overview’ essential for policy is illusory / exaggerated glosses over institutional failures reinforces a belief in unlimited econ growth reinforces problematic consumerism insufficient attention to ethics ill suited to the most serious envi problems
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