Category Archives: Steady state economy

An economic growth FAQ from the Center for the Advancement of the Steady State Economy

[Update: Since this was posted, the CASSE site, including the FAQ, has been revamped. I encourage you to go there and have a look around!]

Administrator’s note: Though lots of actions play around the edges of helping address our environmental problems, very few get to the heart of the matter. One that does is the promotion of economic policy which rejects the notion of endless economic growth. In that vein, the “steady state economy” is a key alternative model, having grown out of the work of those in the field of ecological economics.

And no one works harder or more effectively to promote the steady state economy than Brian Czech, Ph.D. (and team!) and the Center for the Advancement of the Steady State Economy (CASSE). Trained as a conservation biologist, Brian is today an important contributor to our understanding of ecological economics, which he teaches as a visiting assistant professor at Virginia Tech. He is the author of Shoveling Fuel for a Runaway Train.

Here then, is the CASSE FAQ on economic growth. In few words, it says a great deal, touching on key points involved in the fundamental conflict between economic growth and environmental protection. My thanks to Brian for making it available! Find previous posts on Brian and CASSE here. In a related vein is this recent piece on ecological/steady state economics at Trinifar and this one at The Natural Patriot. — JF
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By Brian Czech:

What is economic growth?

Economic growth is simply an increase in the production and consumption of goods and services. It entails increasing population and/or per capita production and consumption. It is measured or indicated by increasing GDP, or gross domestic product.

Why is economic growth a threat to the environment?

The economy exists within the ecosystem. This fact is overlooked in business and economics textbooks, where the economy is portrayed as a circular flow of money between firms and households:

Economy

The production of goods and services entails the conversion of natural resources, or “natural capital,” into consumer goods and manufactured capital. This explains why there is a fundamental conflict between economic growth and biodiversity conservation (pdf). Furthermore, pollution is an inevitable byproduct of economic production. The degradation of the environment as a result of economic growth occurs in many ways, but in general, economic growth leaves a larger ecological footprint.

Why is economic growth a threat to economic sustainability, national security, and international stability?

To grow, an economy requires more natural capital, including soil, water, minerals, timber, other raw materials and renewable energy sources. When the economy grows too fast or gets too big, this natural capital is depleted, or “liquidated.” To function smoothly, the economy also requires an environment that can absorb and recycle pollutants. When natural capital stocks are depleted, and/or the capacity of the environment to absorb pollutants is exceeded, the economy is forced to shrink. (more…)

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Humanity is the greatest challenge

The article quoted and linked to below came out of an idea I submitted to the BBC News’s Green Room. I was lucky enough to contact a wonderfully helpful and supportive editor (Thanks, MK!) and the piece was posted last night. It’s exciting to be able to present the ideas we discuss here and around the Web to the BBC’s worldwide audience! — JF
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The growth in human population and rising consumption have exceeded the planet’s ability to support us, argues John Feeney. In this week’s Green Room, he says it is time to ring the alarm bells and take radical action in order to avert unspeakable consequences.

We humans face two problems of desperate importance. The first is our global ecological plight. The second is our difficulty acknowledging the first.

Despite increasing climate change coverage, environmental writers remain reluctant to discuss the full scope and severity of the global dilemma we’ve created. Many fear sounding alarmist, but there is an alarm to sound and the time for reticence is over.

Read the rest…


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Can we grow our way to an environmentally sustainable world?¹

Administrator’s note: I’m honored to feature on GIM an essay by Herman Daly. Dr. Daly teaches at the School of Public Policy at the University of Maryland. Previously, he was a Senior Economist in the Environment Department at the World Bank where he helped develop policy guidelines pertaining to sustainable development. He is a co-founder of the journal, Ecological Economics, and author of many books including Steady-State Economics, Valuing the Earth, and Beyond Growth. He’s received numerous awards including an Honorary Right Livelihood Award, commonly known as the “Alternative Nobel Prize.”

Dr. Daly has often been called the “founding father of ecological economics.” And rightly so.

The following essay is a preview from his forthcoming book, Ecological Economics and Sustainable Development: Selected Essays of Herman Daly. It appears in the section of the book titled, “Issues with the World Bank.” My thanks to Dr. Daly for his permission to post it here on GIM. — JF
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Ecological Economics and Sustainable DevelopmentBy Herman Daly:

I have a short answer and a long answer.

Short answer: My short answer is “No.”

But suppose some of you think the short answer should be “Yes.” My question to you then would be—After you grow your way to an environmentally sustainable world, then what? Would you then be willing to stop growing? Or would you want to keep on growing? Is it a state of the world, or the process of economic growth, that you want to sustain? I think the World Bank wants to sustain growth—that is, a process, not a state of the world. I would like to sustain that subsystem of the world called the “economy” in a state compatible with human well-being. I contend that the attempt to sustain growth will be inimical to that end.

When the economy grows it does not grow into the void, displacing nothing and incurring no opportunity costs. Rather it grows into the finite, non-growing ecosystem and incurs the opportunity cost of displaced natural capital and ecological services. Beyond some point growth in production and population will begin to increase social and environmental costs faster than it increases production benefits, thereby ushering in an era of uneconomic growth—growth that on balance makes us poorer rather than richer, that increases “illth” faster than wealth, and that is likely to be ecologically unsustainable. There is evidence that the US has already reached such a point.

That is my short answer. But it would be more productive to debate the longer, more nuanced, answer. (more…)

Impressions of The 11th Hour

The 11th HourBy John Feeney:

I had the chance last night to see an advance screening of Leonardo DiCaprio’s new film, The 11th Hour, a documentary about our environmental crisis and what we can do about it. I had the good fortune of going with Dave Gardner, founder of Save The Springs, one of the most progressive urban growth control groups in the US. Dave is also a film maker by profession, and is working on his own related documentary, Choking on Growth: Our Misguided Quest for Prosperity.

Not great, but…

The 11th Hour uses snippets of interviews with a variety of experts to highlight several of the key facets of the ecological decline with which we’re faced. It also provides a vision of an ideal, waste free, renewable energy future, and some consideration of the mindset which got us into this mess.

It’s a good, but not great documentary, in part because it lacks the intellectual honesty to touch more than momentarily on population growth despite the scientific consensus concerning its central role in our ecological plight. This is no surprise; it’s in line with most environmental discussion in today’s media. (more…)

The steady state revolution

Brian Czech

A few weeks ago I reported on conservation and other groups adopting official positions on the fundamental conflict between economic growth and environmental protection. I mentioned that Brian Czech and the Center for the Advancement of the Steady State Economy have been instrumental in helping to bring about this awareness and activism.

As an update, on June 9th, at their annual meeting, the American Society of Mammalogists adopted a similar resolution. From the press release:

The ASM described a “fundamental conflict between economic growth and the conservation of ecosystems” based upon scientifically established principles. The ASM noted that an economy has an “optimal size” and that growth beyond the optimum reduces human welfare in addition to threatening other species…. (more…)

Conservation groups speak out on problem of economic growth, and you can too!

Carried away with economic growth
This press release came to me via email:

British Columbia Field Ornithologists take a position on the fundamental conflict between economic growth and biodiversity conservation

At their Annual General Meeting in Lillooet on 26 May 2007, the BC Field Ornithologists (BCFO) adopted a position on the fundamental conflict between economic growth and biodiversity conservation. The BCFO addresses the study and enjoyment of wild birds in British Columbia through research and conservation efforts to preserve birds and their habitats.

The timing of the vote was opportune as Birdlife International announced the previous week that 22% of the planet’s birds are now at increased risk of extinction. A total of 1,221 bird species are presently considered threatened with extinction and an additional 812 species are considered Near Threatened, an increase of 28 species from last year….

The British Columbia Field Ornithologists group is one of a growing number of conservation groups, ecological economics groups, and others which have adopted official positions stating that economic growth is fundamentally incompatible with environmental protection. They include the United States Society for Ecological Economics and the Society for Conservation Biology, North America Section. (more…)

Brian Czech and the logic of the steady state economy

Steady state Our physical growth will have to stop. It’s unsustainable. The earth is finite after all. That’s indisputable, isn’t it? Listen to Brian Czech talk about it in this radio interview. (You’ll need either to download it as an mp3, or to listen to it as a RealAudio file. For the latter, if you don’t have the RealOne player, just download Media Player Classic which is less problematic anyway and plays the same files.) Czech is the president of the Center for the Advancement of the Steady State Economy and author of Shoveling Fuel for a Runaway Train. He has established himself as an important figure in ecological economics, taking on the neoclassical economic model and macroeconomic theorists and their propaganda advocating limitless economic growth. (more…)