ecological economics –

what is it, and what differs it from environmental economics?

Eva Friman 2011

the concept of economic growth as a paradigm shift in economic thought in the 1950s

classical economics neoclassical economics

ontology time- and space bound national wealth

wealth universal in time and space

epistemology/theory

economics as normative/contextualization

(concrete and specific)

economics as value-neutral/de-contextualization

(abstract and general)

conclusion on limits limited economic

expansionunlimited economic growth

Eva Friman 2011

modernist economic discourse

Eva Friman 2011

neoclassical economics

Eva Friman 2011

classical theoryinstitutional theory

Eva Friman 2011

basic assumptions

environmental economics ecological economic

one-dimensional human nature multi-dimensional human nature

insatiable needs satiable needs, insatiable wants

efficiency in focus;distribution and equity

secondary (if that)

distribution and equity in focus; efficiency secondary

nature as instrumental – value if value given nature as intrinsically valuable

scarcity as budget restrictions scarcity as physical restrictions

Eva Friman 2011

needs & wants

needs satiable, must besatisfied to survive

wants insatiable, must notbe satisfied to survive

Eva Friman 2011

basic assumptionsenvironmental economics ecological economics

economy as autonomous economy as subsystem to ecology

environment as choice of consumption environment as basis for consumption

optimizing allocation and externalities optimizing physical scale

environmental crisis as result of lack of clearly defined property rights and non-

priced externalitiesenvironmental crisis as result of a

free-floating economic system

Eva Friman 2011

weak and strong sustainability

natural capital

cultural capital

human made capital

– substitutes or complements?

Eva Friman 2011

weak and strong sustainability

substitutes complements

weak sustainability strong sustainability(priority to efficiency) (priority to sustainability)

keeping total capital intact keeping intact human made and natural capital separately, plus current situation means natural capital needs to grow

Eva Friman 2011

environmental

economicsecological economics

– pricing the environment – defining property rights

(i.e. reforming neoclassical theory)

– environmental investments– redistributing wealth

(global North/global South)

(investing in nature/natural capital, reducing through-put, i.e. GDP)

Eva Friman 2011

environ. econ. sustainability

ecol. econ.sustainability

weak sustainabilitysustainable economic growth

(change in high-income countries’ T; eco-modernism)

strong sustainabilitynon-growing through-put

(change in high-income countries’ T and A; eco-logism)

Eva Friman 2011

GDP and ISEW

Eva Friman 2011