Max S. Dunn

Books: Ecological Economics

Posted by: Max Dunn on July 24, 2009 07:12:53

Ecological Economics: Principles And Applications
by Herman E. Daly and Joshua Farley

Is it weird to love a textbook? If so, then I am very weird because I LOVED this book! It is right up there with Natural Capitalism in explaining why sustainability is important and why our current systems are failing us and future generations.

How does ecological economics differ from neoclassical economics? Take the example of a ship. Neoclassical economics is concerned with efficiently distributing the load so the ship floats evenly on the water. Ecological economics, on the other hand, tries to make sure that the ship is not loaded with so much cargo that it sinks!

Daly and Joshua continue the metaphor (paraphrased): "Ecological economists look at the Earth as tha ship and gross material production of the economy as the cargo. The seaworthiness of the ship is determined by its ecological health, the abundance of its provisions, and its design. Evidence exists that the cargo hold is already too full for a safe voyage and many passengers have not been allowed the basic necessities for the voyage. To make room for an ever-growing cargo, we have ripped out components of the ship we deem unimportant (forests, fisheries, wetlands). Ecological economics also assumes that our goal is not simply to load the ship to the limit, but to preserve areas of the ship for our comfort and enjoyment and to maintain the ship in excellent condition for future generations."