The paper investigates the concept of sustainable development from the neoclassical and ecologica... more The paper investigates the concept of sustainable development from the neoclassical and ecological economics point of view. Different definitions of sustainability are considered and deep analysis is done in that area. Exactly what is it that is supposed to be sustained in "sustainable" development? Two broad answers have been given. First, utility should be sustained, say the neoclassical economists; that is, the utility of future generations is to be non-declining. The future should be at least as well off as the present in terms of its utility or happiness as experienced by itself. Second, physical throughput should be sustained say ecological economists. More exactly, the capacity of the ecosystem to sustain those flows is not to be run down. The future will be at least as well off as the present in terms of its access to biophysical resources and services supplied by the ecosystem. Author adopts the throughput definition and rejects the utility definition, for two reasons. First, utility is non-measurable. Second, and more importantly, even if utility were measurable it is still not something that we can bequeath to the future. Utility is an experience, not a thing. We cannot bequeath utility or happiness to future generations. We can leave them things, and to a lesser degree knowledge. Reducing poverty is indeed the basic goal of development, but it cannot be attained by growth for two reasons. First, because growth in GDP has begun to increase environmental and social costs faster than it increases production benefits. Such uneconomic growth makes us poorer, not richer.
The Journal of Population and Sustainability, 2018
There are two interacting types of argument for a steady-state economy: its biopyhsical necessity... more There are two interacting types of argument for a steady-state economy: its biopyhsical necessity, and its ethical desirability. The first argument is made in terms of the finitude, entropy, and physical maintenance requirements of “dissipative structures” (populations of human bodies and their exosomatic extensions). The second argument considers that the evolution of the human species is now purpose-driven, no longer random, if indeed it ever was. Purpose introduces value judgments of right and wrong regarding how our economy should relate to the rest of creation – judgments ignored by both neoclassical economics and neo-Darwinist naturalism.
Money can be understood from an individual perspective as an abstract form of wealth. From a comm... more Money can be understood from an individual perspective as an abstract form of wealth. From a communal perspective, however, money is better regarded as a debt, a biophysical liability, a lien on future real income of the community. Proper recognition of this dual nature raises concerns over modern, aggressive practices of money creation. It provokes a general reassessment of current institutional agreements surrounding money. In this contribution, said agreements are shown to endow money with an unnatural power to preserve its function despite structural decay. The origin of money interest derives from such institutionally given, unnatural power, where it should be noted that interest itself leads to a strong temptation among entities with money issuance rights to issue more and more. Ultimately, considered together, the dual nature of money and the biophysical origin of money interest provoke the need for a societal reappraisal of which entities should properly be given the right to create money, and which are functioning as "legal counterfeiters". If a transition towards a more sustainable, more equitable bioeconomy is to be realized one day, discussion over who those entities are and what their rightful role is must be reopened.
The global economy is now so large that society can no longer safely pretend it operates within a... more The global economy is now so large that society can no longer safely pretend it operates within a limitless ecosystem. Developing an economy that can be sustained within the finite biosphere requires new ways of thinking
The book under review is a timely contribution to the field of Ecological Economics at a time whe... more The book under review is a timely contribution to the field of Ecological Economics at a time when it has been trying to establish its transdisciplinarity from biology, physics, and social sciences. One of the two authors, Herman E. Daly, is the co-founder of the International Society for Ecological Economists (ISEE). Theories are explained through examples and images. In each chapter authors have raised some questions under the banner of "THINK ABOUT IT!" to help readers think practically. The book is divided into six parts. These six parts are distributed among 23 chapters: 3 chapters in Part I, 4 chapters in part II, 5 chapters in part III, 4 chapters in part IV, 3 chapters in part V and 4 chapters in part VI.
Josepha Stiglitza mediji cesto opisuju kao jednoga od rijetkih akademskih ekonomista koji ima vel... more Josepha Stiglitza mediji cesto opisuju kao jednoga od rijetkih akademskih ekonomista koji ima veliko iskustvo s problemima stvarnog svijeta. Kratak po- gled na njegovu biografiju otkriva i razloge za to. Nobelova nagrada, predavac na najistaknutijim americkim sveucilištima, ...
Money can be understood from an individual perspective as an abstract form of wealth. From a comm... more Money can be understood from an individual perspective as an abstract form of wealth. From a communal perspective, however, money is better regarded as a debt, a biophysical liability, a lien on future real income of the community. Proper recognition of this dual nature raises concerns over modern, aggressive practices of money creation. It provokes a general reassessment of current institutional agreements surrounding money. In this contribution, said agreements are shown to endow money with an unnatural power to preserve its function despite structural decay. The origin of money interest derives from such institutionally given, unnatural power, where it should be noted that interest itself leads to a strong temptation among entities with money issuance rights to issue more and more. Ultimately, considered together, the dual nature of money and the biophysical origin of money interest provoke the need for a societal reappraisal of which entities should properly be given the right to create money, and which are functioning as "legal counterfeiters". If a transition towards a more sustainable, more equitable bioeconomy is to be realized one day, discussion over who those entities are and what their rightful role is must be reopened.
The paper investigates the concept of sustainable development from the neoclassical and ecologica... more The paper investigates the concept of sustainable development from the neoclassical and ecological economics point of view. Different definitions of sustainability are considered and deep analysis is done in that area. Exactly what is it that is supposed to be sustained in "sustainable" development? Two broad answers have been given. First, utility should be sustained, say the neoclassical economists; that is, the utility of future generations is to be non-declining. The future should be at least as well off as the present in terms of its utility or happiness as experienced by itself. Second, physical throughput should be sustained say ecological economists. More exactly, the capacity of the ecosystem to sustain those flows is not to be run down. The future will be at least as well off as the present in terms of its access to biophysical resources and services supplied by the ecosystem. Author adopts the throughput definition and rejects the utility definition, for two reasons. First, utility is non-measurable. Second, and more importantly, even if utility were measurable it is still not something that we can bequeath to the future. Utility is an experience, not a thing. We cannot bequeath utility or happiness to future generations. We can leave them things, and to a lesser degree knowledge. Reducing poverty is indeed the basic goal of development, but it cannot be attained by growth for two reasons. First, because growth in GDP has begun to increase environmental and social costs faster than it increases production benefits. Such uneconomic growth makes us poorer, not richer.
The Journal of Population and Sustainability, 2018
There are two interacting types of argument for a steady-state economy: its biopyhsical necessity... more There are two interacting types of argument for a steady-state economy: its biopyhsical necessity, and its ethical desirability. The first argument is made in terms of the finitude, entropy, and physical maintenance requirements of “dissipative structures” (populations of human bodies and their exosomatic extensions). The second argument considers that the evolution of the human species is now purpose-driven, no longer random, if indeed it ever was. Purpose introduces value judgments of right and wrong regarding how our economy should relate to the rest of creation – judgments ignored by both neoclassical economics and neo-Darwinist naturalism.
Money can be understood from an individual perspective as an abstract form of wealth. From a comm... more Money can be understood from an individual perspective as an abstract form of wealth. From a communal perspective, however, money is better regarded as a debt, a biophysical liability, a lien on future real income of the community. Proper recognition of this dual nature raises concerns over modern, aggressive practices of money creation. It provokes a general reassessment of current institutional agreements surrounding money. In this contribution, said agreements are shown to endow money with an unnatural power to preserve its function despite structural decay. The origin of money interest derives from such institutionally given, unnatural power, where it should be noted that interest itself leads to a strong temptation among entities with money issuance rights to issue more and more. Ultimately, considered together, the dual nature of money and the biophysical origin of money interest provoke the need for a societal reappraisal of which entities should properly be given the right to create money, and which are functioning as "legal counterfeiters". If a transition towards a more sustainable, more equitable bioeconomy is to be realized one day, discussion over who those entities are and what their rightful role is must be reopened.
The global economy is now so large that society can no longer safely pretend it operates within a... more The global economy is now so large that society can no longer safely pretend it operates within a limitless ecosystem. Developing an economy that can be sustained within the finite biosphere requires new ways of thinking
The book under review is a timely contribution to the field of Ecological Economics at a time whe... more The book under review is a timely contribution to the field of Ecological Economics at a time when it has been trying to establish its transdisciplinarity from biology, physics, and social sciences. One of the two authors, Herman E. Daly, is the co-founder of the International Society for Ecological Economists (ISEE). Theories are explained through examples and images. In each chapter authors have raised some questions under the banner of "THINK ABOUT IT!" to help readers think practically. The book is divided into six parts. These six parts are distributed among 23 chapters: 3 chapters in Part I, 4 chapters in part II, 5 chapters in part III, 4 chapters in part IV, 3 chapters in part V and 4 chapters in part VI.
Josepha Stiglitza mediji cesto opisuju kao jednoga od rijetkih akademskih ekonomista koji ima vel... more Josepha Stiglitza mediji cesto opisuju kao jednoga od rijetkih akademskih ekonomista koji ima veliko iskustvo s problemima stvarnog svijeta. Kratak po- gled na njegovu biografiju otkriva i razloge za to. Nobelova nagrada, predavac na najistaknutijim americkim sveucilištima, ...
Money can be understood from an individual perspective as an abstract form of wealth. From a comm... more Money can be understood from an individual perspective as an abstract form of wealth. From a communal perspective, however, money is better regarded as a debt, a biophysical liability, a lien on future real income of the community. Proper recognition of this dual nature raises concerns over modern, aggressive practices of money creation. It provokes a general reassessment of current institutional agreements surrounding money. In this contribution, said agreements are shown to endow money with an unnatural power to preserve its function despite structural decay. The origin of money interest derives from such institutionally given, unnatural power, where it should be noted that interest itself leads to a strong temptation among entities with money issuance rights to issue more and more. Ultimately, considered together, the dual nature of money and the biophysical origin of money interest provoke the need for a societal reappraisal of which entities should properly be given the right to create money, and which are functioning as "legal counterfeiters". If a transition towards a more sustainable, more equitable bioeconomy is to be realized one day, discussion over who those entities are and what their rightful role is must be reopened.
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Papers by Herman E. Daly