1. GREEN ECONOMICS: Workshop 1: A Christian Perspective Christian Ecology Link conference End of the Age of Thorns: Surviving consumerism 5th March 2011 Tim Cooper

2. GREEN ECONOMICS: ORIGINS Development of Green political philosophy –Carson, Ward, Ehrlich, Schumacher, Capra, Porritt Scientific studies of global environmental trends –Club of Rome (Limits to Growth) Emerging critique of conventional economics –TOES (The Other Economic Summit) 1980s –Boulding, Daly, Pearce, Jacobs, Ekins, Costanza

3. DISSATISFACTION WITH NEOCLASSICAL ECONOMICS Rooted in scientific world view –Instrumentalist / utilitarian –Assumption of human rationality cf. ‘bounded rationality’ - cognitive limitations –Assumption that individuals are inherently materialistic and selfish Choices based on wanting more rather than less Decisions based on ‘utility maximisation’ i.e. personal benefit –Flawed quantitative bias –Unrealistic models Simplistic market structures Information not available to consumers

4. GREENING ECONOMICS Emergence of ‘heterodox’ forms of economics –New schools of thought (behavioural, institutional, ecological) Ecological starting point –Limits (critique of economic growth) –Biomimicry (cyclical) Intrinsically multidisciplinary –Sustainability’s three pillars (economic, environmental, social) Focus on quality of life –Happiness and income (Easterlin, Layard)

5. SUSTAINABILITY

6. HAPPINESS

7. PROSPERITY… …WITH A PURPOSE (CTBI report 2005) …WITHOUT GROWTH (SDC report 2009)

8. THE CHRISTIAN SOCIAL CONSCIENCE “The thinking of all the mainstream denominations…has converged around one key proposition: that under the right conditions, economic growth can serve God’s purposes.” CTBI, 2005

9. Building a Sustainable Macro-Economy - not dependent on growth and debt 1. Developing macro-economic capability 2. Investing in public assets and infrastructures 3. Increasing financial and fiscal prudence 4. Reforming macro-economic accounting Protecting Capabilities for Flourishing - freeing people from materialistic consumerism 5. Sharing the available work and improving the work-life balance 6. Tackling systemic inequality 7. Measuring capabilities and flourishing 8. Strengthening human and social capital 9. Reversing the culture of consumerism Respecting Ecological Limits - establishing clear resource and environmental limits on economic activity. 10. Imposing clearly defined resource/emissions caps 11. Implementing fiscal reform for sustainability 12. Promoting technology transfer and international ecosystem protection. SDC, 2009 12 STEPS TO A SUSTAINABLE ECONOMY

10. ECOLOGICAL / GREEN ECONOMICS Highlights interdependence and co-evolution of human economies and natural ecosystems –natural capital Based on ‘strong sustainability’ –limits to technology / material substitution Explicitly value-based (normative) –equity Distinct from environmental economics –application of conventional economic tools to environmental problems

11. UNRESOLVED TENSIONS Levels of growth –Is ‘recession’ necessarily good? Trade and the environment –Are localisation and internationalism in conflict? Policy impacts and the poor –Are higher energy prices ‘fair’?

12. THE CHRISTIAN GOD Where does He fit in? A view from the USA

13. CHRISTIAN ECONOMICS Does it exist? –Few notable scholars –Different methods, standards of evidence, types of knowledge A cross-disciplinary relationship between theology and economics? Application of Christian ethics to conventional economics? Use of economics in interpreting Biblical text? Would it take only one, distinctive form?

14. WHY IT’S IMPORTANT Daly and Cobb’s four principles –A check against idolatry –A perspective that transcends one’s own –Commitedness and directed commitment –Understanding our relation to the future

15. WHAT MIGHT IT MEAN –Identifying specific Biblical practices Keeping the Sabbath Opposing usury –Applying broad ethical principles Work Creation care Social justice Generosity/philanthropy

16. POLICY INSTRUMENTS Regulatory –Standards e.g. inefficient refrigeration Market-based –Taxes and subsidies e.g. landfill tax, renewables obligation certificate Voluntary –Informal agreements with industry e.g. green claims code

17. FOR DISCUSSION 1.What risks does the Government face if it addresses over-consumption in an ‘era of austerity’? 2.Should the Government introduce a price floor for energy prices and/or introduce a fuel tax escalator? 3.Is localisation an appropriate economic strategy or a form of dangerous insularity? 4.Would Christian economics inevitably be ‘green’?

18. RESOURCES New Economics Foundation Green Economics Institute Jubilee Centre Association of Christian Economists