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Ecological Economics and Sustainable Development, Selected Essays of Herman Daly ADVANCES in ECOLOGICAL ECONOMICS Series Editor:Jeroen C.J.M Ecological Economics and Sustainable Development, Selected Essays of Herman Daly ADVANCES IN ECOLOGICAL ECONOMICS Series Editor:Jeroen C.J.M. van den Bergh, ICREA Professor, Universitat Autònoma de Barcelona, Spain and Professor of Environmental and Resource Economics, Vrije Universiteit, Amsterdam, The Netherlands Founding Editor:Robert Costanza, Director, University of Maryland Institute for Ecological Economics and Professor, Center for Environmental and Estuarine Studies and Zoology Department, USA This important series makes a significant contribution to the development of the principles and practices of ecological economics, a field which has expanded dra- matically in recent years. The series provides an invaluable forum for the publica- tion of high quality work and shows how ecological economic analysis can make a contribution to understanding and resolving important problems. The main emphasis of the series is on the development and application of new original ideas in ecological economics. International in its approach, it includes some of the best theoretical and empirical work in the field with contributions to funda- mental principles, rigorous evaluations of existing concepts, historical surveys and future visions. It seeks to address some of the most important theoretical questions and gives policy solutions for the ecological problems confronting the global village as we move into the twenty-first century. Titles in the series include: Economic Growth, Material Flows and the Environment New Applications of Structural Decomposition Analysis and Physical Input–Output Tables Rutger Hoekstra Joint Production and Responsibility in Ecological Economics On the Foundations of Environmental Policy Stefan Baumgärtner, Malte Faber and Johannes Schiller Frontiers in Ecological Economic Theory and Application Edited by Jon D. Erickson and John M. Gowdy Socioecological Transitions and Global Change Trajectories of Social Metabolism and Land Use Edited by Marina Fischer-Kowalski and Helmut Haberl Conflict, Cooperation and Institutions in International Water Management An Economic Analysis Ines Dombrowsky Ecological Economics and Sustainable Development, Selected Essays of Herman Daly Herman E. Daly Ecological Economics and Sustainable Development, Selected Essays of Herman Daly Herman E. Daly Professor, School of Public Policy, University of Maryland, USA ADVANCES IN ECOLOGICAL ECONOMICS Edward Elgar Cheltenham, UK • Northampton, MA, USA © Herman E. Daly, 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Daly, Herman E. [Selections, 2007] Ecological economics and sustainable development, selected essays of Herman Daly/Herman E. Daly. p. cm. — (Advances in ecological economics) Includes bibliographical references and index. 1. Environmental economics. 2. Sustainable development. I. Title. HC79.E5D3242 2007 338.9’27—dc22 2007001391 ISBN 978 1 84720 101 0 (cased) Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Contents List of figures and boxes vii Acknowledgments viii Introduction 1 PART 1 BASIC CONCEPTS AND IDEAS 5 1. Limits to growth 9 2. Economics in a full world 12 3. The challenge of ecological economics: historical context and some specific issues 25 PART 2 ISSUES WITH THE WORLD BANK 33 4. Sustainable development: definitions, principles, policies 36 5. The illth of nations: comments on World Bank World Development Report, 2003 50 6. Can we grow our way to an environmentally sustainable world? 55 PART 3 ISSUES IN ECOLOGICAL ECONOMICS AND SUSTAINABLE DEVELOPMENT 61 7. Consumption and welfare: two views of value added 64 8. Ecological economics: the concept of scale and its relation to allocation, distribution, and uneconomic growth 82 9. Sustaining our commonwealth of nature and knowledge 104 10. The steady-state economy and peak oil 117 11. How long can neoclassical economists ignore the contributions of Georgescu-Roegen? 125 v vi Contents PART 4 TESTIMONY AND OPINION 139 12. Off-shoring in the context of globalization 143 13. Invited testimony to Russian Duma on resource taxation 146 14. Involuntary displacement: efficient reallocation or unjust redistribution? 149 15. Sustainable development and OPEC 156 PART 5 REVIEWS AND CRITIQUES 169 16. Can Nineveh repent again? 172 17. Beck’s Case Against Immigration 176 18. Hardly green 179 19. The return of Lauderdale’s paradox 184 20. When smart people make dumb mistakes 188 PART 6 GLOBALIZATION 191 21. Globalization versus internationalization, and four reasons why internationalization is better 194 22. Population, migration, and globalization 204 PART 7 PHILOSOPHY AND POLICY 211 23. Policy, possibility, and purpose 215 24. Feynman’s unanswered question 228 25. Roefie Hueting’s perpendicular “demand curve” and the issue of objective value 237 26. Conclusions 251 Index 257 Figures and boxes FIGURES 2.1 When growth is bad 16 2.2 Entropy hourglasses (based on Georgescu-Roegen) 18 15.1 A “macro” view of the macroeconomy 158 BOXES 2.1 Crossroads for the economy 14 2.2 Natural capital as limiting factor 16 2.3 When to stop 17 2.4 Thermodynamic basis of the economy 19 2.5 Measuring well-being 21 vii Acknowledgments The author and publisher wish to thank the copyright holders who have kindly given their permission for the use of copyright material: Chapter 1. “Limits to Growth”, Encyclopedia of Population,Paul Demeny and Geoffrey McNicoll, eds, Macmillan Co., 2003, pp. 602–3. Chapter 2. “Economics in a Full World”, Scientific American, September 2005. Chapter 3. “The Challenge of Ecological Economics: Historical Context and Some Specific Issues”, Heineken Prize Lecture, Amsterdam, September 30, 1996. Chapter 4. Invited Address, World Bank, April 30, 2002, Washington, DC. Previously published in Marco Keiner, ed., The Future of Sustainability, Springer, Dordrecht, The Netherlands, 2006. Chapter 5. Previously published as “The Illth of Nations: When Growth Becomes Uneconomic”, in Managing Sustainability World Bank-Style (An Evaluation of the World Development Report 2003), Heinrich Boell Foundation, Washington, DC, August 2002. Chapter 6. Invited Speech/Debate, World Bank, Washington, DC, March 2, 2004. Chapter 7. “Consumption and Welfare: Two Views of Value Added”, Review of Social Economy,Vol. LIII, No. 4 (Winter 1995), pp. 451–73. Chapter 8. “Ecological Economics: The Concept of Scale and Its Relation to Allocation, Distribution, and Uneconomic Growth”, Keynote address, Canadian Society for Ecological Economics, October 16–19, 2003, Jasper, Alberta, Canada. Chapter 9. “Sustaining Our Commonwealth of Nature and Knowledge”, originally presented in Forum on Social Wealth, University of viii Acknowledgments ix Massachusetts, Amherst, September 29, 2005. Published in International Journal of Ecodynamics,Vol. 1, No. 3, 2006, pp. 1–9. Chapter 10. “The Steady-State Economy and Peak Oil”, presented at Peak Oil Conference, George Washington University, Washington, DC, May 9, 2006, sponsored by the Program in Conservation Biology and Sustainable Development, University of Maryland. Chapter 11. “How Long Can Neoclassical Economists Ignore the Contributions of Georgescu-Roegen?”, in Kozo Mayumi and John Gowdy, eds, Bioeconomics and Sustainability: Essays in Honor of Nicholas Georgescu-Roegen,Edward Elgar, Cheltenham, UK, 1999, pp. 13–24. Chapter 12. Testimony before Senate Democratic Policy Committee, March 5, 2004, Washington, DC. Chapter 13. Invited Statement to Russian Duma, Committee on Natural Resources, SubCommittee on Land and Ecology, December 18, 1998. Chapter 14. Invited paper, “Economics and Involuntary Displacement”, National Academy of Sciences Workshop, September 23, 2004, Washington, DC, organized by Michael M. Cernea. Chapter 15. Invited paper for OPEC conference, “OPEC and the Global Energy Balance: Towards a Sustainable Energy Future”, September 2001, Vienna, Austria. Chapter 16. BioScience,Vol. 54, No. 10 (October 2004), pp. 956–7, review of Paul and Anne Ehrlich, One With Nineveh (Politics, Consumption, and the Human Future). Chapter 17. Ecological Economics,November 1997, review of Roy Beck, The Case Against Immigration (The Moral, Economic, Social, and Environmental Reasons for Reducing US Immigration Back to Traditional Levels). Chapter 18. American Prospect,April 24, 2000, review of Peter Huber, Hard Green: Saving the Environment from the Environmentalists (A Conservative Manifesto). Chapter 19. “The Return of Lauderdale’s Paradox”, Ecological Economics, Vol. 25, 1998, pp. 21–3. x Acknowledgments Chapter 20. “When Smart People Make Dumb Mistakes”, Ecological, Economics,Vol. 34, No. 1 (July 2000), pp. 1–3. Chapter 21. “Globalization versus Internationalization, and Four Reasons Why Internationalization is Better”, address at Southwestern University, Georgetown, Texas, February 21, 2002. Chapter 22. “Population, Migration, and Globalization”, Ecological Economics, special issue on immigration, Vol. 59, 2006, pp. 187–90. Chapter 23. “Policy, Possibility, and Purpose”, Worldviews (September 2002). Chapter 24. “Feynman’s Unanswered Question”,
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