Environmental, Social and Economic Challenges to Sustainability OR The Litany of Problems: Their solutions as desired ends

Announcements Grading Grading Submitting PS 2 Submitting PS 2

The Issues Human capital Human capital Population growth Population growth Natural capital Natural capital Resource use Resource use Waste emissions Waste emissions Social capital and distribution Social capital and distribution Built and financial capital Built and financial capital Well being Well being

Exponential Growth

Exponential growth: human populations

Exponential growth: moderated

Exponential growth: resource use Past 100 years: population increase = 4X resource consumption = 36X

Exponential Growth of Any Kind is Unsustainable Lessons from Curitiba? Lessons from Curitiba? Lessons from Kerala? Lessons from Kerala?

Fossil Fuels

The Hubbert curve-discovery

The Hubbert curve-production

Waste Emissions

Lessons from Kerala and Curitiba?

Renewable resources

Renewables Source Source Depletion of raw materials Depletion of raw materials Water, Soil Water, Soil Services Services Loss of ecosystem functions Loss of ecosystem functions Climate stability, ozone layer Climate stability, ozone layer Sink Sink Loss of waste absorption capacity Loss of waste absorption capacity

Renewable resources

Renewables

Ecological footprint

Lessons?

The Myth of Upward Mobility? Is Horatio Algier Dead? Is Horatio Algier Dead? 1930s-40s: The great compression 1930s-40s: The great compression , CBO data: Average real income of bottom 90% fell by 7%, income of top.01% rose by 599% , CBO data: Average real income of bottom 90% fell by 7%, income of top.01% rose by 599% Business Week 2003: Waking Up from the American Dream: Meritocracy and Equal Opportunity Are Fading Fast “economy slowly stratifying along class lines” Business Week 2003: Waking Up from the American Dream: Meritocracy and Equal Opportunity Are Fading Fast “economy slowly stratifying along class lines” University of Chicago economics professor and Nobel laureate James J. Heckman: "the big finding in recent years is that the notion of America being a highly mobile society isn't as true as it used to be." University of Chicago economics professor and Nobel laureate James J. Heckman: "the big finding in recent years is that the notion of America being a highly mobile society isn't as true as it used to be." Federal Reserve Bank of Boston economists: the number of people who stayed stuck in the same income bracket -- be it at the bottom or at the top -- over the course of a decade actually increased in the 1990s. Federal Reserve Bank of Boston economists: the number of people who stayed stuck in the same income bracket -- be it at the bottom or at the top -- over the course of a decade actually increased in the 1990s.

Can we grow our way out of poverty? Real GNP doubles every generation Real GNP doubles every generation Poverty declined through most of US history, until 1970s Poverty declined through most of US history, until 1970s

How much growth would it take?

Income vs. Capital How much can we consume this year, and still have just as much to consume next year? How much can we consume this year, and still have just as much to consume next year? Are we consuming income or capital? Are we consuming income or capital? Strong vs. weak sustainability: does the accumulation of some capitals compensate for the loss of others? Strong vs. weak sustainability: does the accumulation of some capitals compensate for the loss of others?

Savings rate and capital accumulation: personal

Savings rate and capital accumulation: national

Federal deficit

If we’re using up the Earth’s resources, aren’t we obligated to be happy at the very least?

Is This Generation Better Off than the Last? Subjective Happiness Subjective Happiness ISEW ISEW

ISEW

Conclusion