Enough is Enough: a sustainable economy in world of finite resources

Definition A steady state economy is an economy of relatively stable size. It features stable population and stable consumption that remain at or below carrying capacity

Brief History Neoclassical economics view of a everlasting growing cycles of production and consumption

Something missing?

The I=PAT Formula Impact (environmental) = Population x Affluence (GDP per capita) x Technology (environmental impact per dollar of GDP) (Ehrlich and Holdren 1971)

Definition A steady state economy is an economy of relatively stable size. It features stable population and stable consumption that remain at or below carrying capacity

The I=PAT Formula Impact (environmental) = Population x Affluence (GDP per capita) x Technology (environmental impact per dollar of GDP) (Ehrlich and Holdren 1971)

However, it’s not perfect Impact (environmental) = Population x Affluence (GDP per capita) x Technology (environmental impact per dollar of GDP) (Ehrlich and Holdren 1971)

Solow’s substitutability all kinds of natural capital can be substituted by human-made capital

Czech and Daly’s steady- state economy

Any non-physical components of an economy (e.g., knowledge) can grow indefinitely. But the physical components (e.g. supplies of natural resources, human populations, and stocks of human-built capital) are constrained by the laws of physics and beholden to ecological relationships.

Czech and Daly’s steady- state economy

1 st Law of Thermodynamics: Conservation of Matter/Energy

Czech and Daly’s steady- state economy Closed System

Czech and Daly’s steady- state economy 2 nd Law of Thermodynamics: energy of all kinds in our material world disperses or dissipates if it is not hindered from doing so entropy is a quantitative measure of that kind of spontaneous process: how much energy flowed from being constricted or concentrated to being more widely spread

Czech and Daly’s steady- state economy Deduction: perpetual-motion machines is not ever possible

Czech and Daly’s steady- state economy Raw materials Waste Spontaneousenergy dissipation

Czech and Daly’s steady- state economy Objective: keep the throughput of raw materials (low entropy) and waste (high entropy) at levels within the regenerative and assimilative capacity of the ecosystem

Retrospect to our current economy What does continuous growth actually do and what will it lead to? THE DAY?

What do we do according to SSE? The constraint  high-quality, long-lasting, repairable goods

How to achieve SSE?  Apply substantial taxes on fossil fuels, especially petrol  Abolish subsidies encouraging fossil fuel use  Price water to reflect scarcity and encourage conservation  Halt immigration  Eliminate subsidies to industrial agriculture  Abandon globalization