Sin ttulo de diapositiva

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Module 4 Ecological economics
Meaning a new paradigm Transdisciplinarity Fundam
ents limits to physical growth, ignorance and
precautionary principle, multicriteria analysis
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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)
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...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
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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
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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, requires a
  fundamentally precautionary stance." (Getting
  Down to Earth, p.2)
• If we matter and then it doesnt matter, it
  doesnt matter if we dont matter, and then it
  matters, it matters (Human Ecology, Human
  Economy)

• Future generations how to discount the future?
  gti ? lt future value of the environment ? gt
  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)

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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. 466470 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 ONeill 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