The Tinbergen Hueting Approach in the Economics of Ecological Survival
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Munich Personal RePEc Archive The Tinbergen Hueting Approach in the Economics of Ecological Survival Colignatus, Thomas Samuel van Houten Genootschap 9 March 2009 Online at https://mpra.ub.uni-muenchen.de/63904/ MPRA Paper No. 63904, posted 27 Apr 2015 12:18 UTC THE TINBERGEN & HUETING APPROACH IN THE ECONOMICS OF ECOLOGICAL SURVIVAL 1 2 DRAFT The Tinbergen & Hueting Approach in the Economics of Ecological Survival Thomas Colignatus Samuel van Houten Genootschap 3 1st edition, 2015 ? Copyright © Thomas H.A.M. Cool http://thomascool.eu, cool @ dataweb.nl Colignatus is the preferred name of Thomas Cool in science. I thank Roefie Hueting, Bart de Boer and Thea Sigmond for their comments over some years now. All errors remain mine. Lawful exceptions excluded, nothing of this publication may be copied or published by means of print, photocopy, microfilm, electronics or otherwise, unless a written permit has been given by the lawful owners of the copyright, and this also holds for whole or partial reworkings. Behoudens uitzondering door de wet gesteld mag zonder schriftelijke toestemming van de rechthebbende(n) op het auteursrecht niets uit deze uitgave worden verveelvoudigd en/of openbaar gemaakt door middel van druk, fotokopie, microfilm, electronica of anderszins, hetgeen ook van toepassing is op gehele of gedeeltelijke bewerking. Supported by Samuel van Houten Genootschap Wetenschappelijk bureau van het Sociaal Liberaal Forum Scientific bureau of the Social Liberal Forum http://thomascool.eu/SvHG/SvHG.html Published by ISBN 90- JEL A00 Nederlandse unif rme genre indeling :NUGI) 6A1, 654 & 691 CIP-GEGEVENS CONINCLIJCE BIBLIOTHEEC DS-GRAVENHAGE 4 C ntents in Brief Introduction 11 Roefie Hueting and Sustainable National Income 15 The choice on sustainability: information or the meta SWF approach to a shift of preferences 19 The Old Man and the SNI. A review of advance and adversity in Hueting+s research in economic growth and the new scarcity from the environment and sustainable national income ,SNI- 2. The seminal contribution of Roefie Hueting to economic science: Theory and measurement of ,environmentally- Sustainable National Income 61 On the political economy of environmental survival versus collapse. 0larifying the wor1 done by Tinbergen 2 Hueting vis 3 vis Weit4man, Nordhaus and Stern 69 67enuine Savings8 at the World 9an1 89 Reaction to 9j<rn Lomborg 93 Environmentally sustainable national income: Wor1 in progress 99 0onclusions of this boo1 103 Appendices 105 5 Abstract Tinbergen & Hueting :1991) pr vide an appr ach t the ec n mics f ec l gical survival that still is unsurpassed. Vari us Egreen GDPsF have been pr p sed such as ISEW, Ec l gical F tprint, Genuine Savings and Genuine Pr gress Indicat r, and lately there is an increased interest in happiness as a re-interpretati n f ec n mic utility and s cial welfare. With respect t b th ec l gical survival and reGuirements f ec n mic the ry these alternatives h wever fail. The Tinbergen & Hueting :1991) appr ach is :1) r ted in the fundamentals f ec n mic analysis, :2) r ted in fundamentals f ec l gy, :3) applicable within the statistical framew r6 f nati nal acc unting and hencef rth fully practical, :4) demanding in ec n mic and envir nmental e7pertise but c ncerning the resulting indicat r f :envir nmentally) Sustainable Nati nal Inc me :eSNI) easy t understand by p licy ma6ers and the general public. Currently, statistical ffices and ec n mic advis ry agencies ver the w rld are implementing NAMEA systems f r nati nal acc unting and derived indicat rs b th f r statistical bservati n and pr 9ecti ns f r the future. P licy discussi ns n ec l gical survival will be much served when researchers study in detail what these great ec n mists have wr ught. When an ec n mist hasnIt read Tinbergen & Hueting :1991) and Hueting and De B er :2001) then an advice n ec n mic gr wth and ec l gical survival is at ris6 t be misguided J as indeed is sh wn in the vari us cases. It may be bserved that the main auth r f Tinbergen & Hueting :1991) was actually Hueting. The menti ning f Tinbergen as the first auth r derives fr m the imp rtance that he as recipient - 9 intly with Ragnar Frisch - f the N bel Pri8e in ec n mics 1969 fully supp rted the findings by Hueting. Tinbergen was als ne f the designers f the System f Nati nal Acc unts in the 1930s and thus in a firm p siti n t c llab rate with Hueting n this issue. 6 C ntents Introduction 11 The ec n mics f ec l gical survival 11 The Tinbergen & Hueting appr ach 11 The c ntents f this b 6 12 Limitati ns f this study 12 Caveat 14 Roefie Hueting and Sustainable National Income 15 Nati nal acc unts 15 Envir nmental functi ns 15 Demand and supply 16 Tw Guesti ns 16 Rev luti n in statistics 17 C nclusi n 17 The choice on sustainability: information or the meta SWF approach to a shift of preferences 19 Intr ducti n 19 The envir nmental issue 19 Basic c ncepts 20 M del 21 Graphs 22 Tables 22 Cl ser understanding 24 C nclusi n 25 Appendi72 Pr gram 25 The Old Man and the SNI. A review of advance and adversity in Hueting+s research in economic growth and the new scarcity from the environment and sustainable national income ,SNI- 2. 1. Intr ducti n 2A 1.1 A t pic in p litical ec n my 2A 1.2 Ma6ing a c mpass f r ec n mic p licy n the envir nment 30 1.3 A guiding diagram 31 1.4 Nati nal acc unting 33 1.5 A guiding table 35 1.6 A summary deducti n 37 2. The peri d up t ENew Scarcity and Ec n mic Gr wthF 1974 3A 3. S me c nclusi ns fr m ENew Scarcity and Ec n mic Gr wthF 1974 39 4. Recepti n f ENew Scarcity and Ec n mic Gr wthF 40 4.1 On the p sitive side 40 4.2 Si7 year delay in the publicati n f the English translati n 40 4.3 N ad pti n f the 6ey pr p sal 41 . 5. The peri d up t the Brundtland rep rt 19A7 41 5.1 SNI and eSNI 41 5.2 The n ti n f :envir nmentally) Sustainable Nati nal Inc me :eSNI) 42 5.3 Hueting n the Brundtland rep rt 42 6. The peri d up t the Hueting C ngress 1999 43 6.1 Tinbergen & Hueting 1991 43 6.2 CBS and CPB 43 6.3 Inside CBS Statistics Netherlands 1991-1999 44 6.4 eSNI and ec l gical ec n mics 51 6.5 The Hueting C ngress 1999 54 7. The peri d up t 200A 55 7.1 Retirement 55 7.2 Dutch eSNI trend 1990-2000 55 7.3 The Stern Review 2006 56 7.4 A missed chance f r Germany and Eur stat 56 7.5 A mysteri us disappearance f a crucial subsidy 56 A. C ncluding remar6s 57 The seminal contribution of Roefie Hueting to economic science: Theory and measurement of ,environmentally- Sustainable National Income 61 Intr ducti n 61 Setting 62 HuetingIs c ntributi n 64 C ncluding remar6s 66 Appendi72 C st f calculating eSNI 67 On the political economy of environmental survival versus collapse. 0larifying the wor1 done by Tinbergen 2 Hueting vis 3 vis Weit4man, Nordhaus and Stern 69 Intr ducti n 69 The tw appr aches 70 Rightly scaring pe ple 72 P ssibly entertaining pe ple 74 Definiti ns f uncertainty and ris6 74 A fat tail is n t needed t get scared 75 Facts, f the past and f reality 76 Scenari analysis and c st-benefit analysis 77 The Sterner & Perss n appr ach 7A A small n te n calculating the damage 7A Rate f disc unt 79 N rdhaus and sustainability 79 C nclusi n A1 Appendi7 A. P ssibly entertaining pe ple :c ntinued) A2 Appendi7 B. N rdhaus and sustainability :c ntinued) A3 Appendi7 C. N rdhaus :2007b) n the r le f federal statistical agencies A6 67enuine Savings8 at the World 9an1 89 Wea6 versus str ng sustainability A9 8 Genuine Savings versus eSNI 90 C sts f calculati n 91 C nclusi n 92 Reaction to 9j<rn Lomborg 93 :A) EThe s6eptical envir nmentalistF, CUP 2001 93 Intr ducti n 93 Three angles 93 P ints in m re detail 94 :B) EC l itF, Cn pf 2007 96 Environmentally sustainable national income: Wor1 in progress 99 Abstract 99 Intr ducti n 99 A relatively cheap c rrecti n 99 The need f r s me f cus 99 Distracting temptati ns 100 H w t d science 100 W r6 in pr gress 100 0onclusions of this boo1 103 Appendices 105 Literature 106 Inde7 114 9 10 Introduction The ec n mics f ec logical survival In this b 6, ec l gical survival is n t an issue f drama but f g vernance and ec n mics. The warnings by ec l gists, and bservati ns that every ne can read r see and hear in the newsmedia, here are n t c nsidered by themselves but are nly an inspirati n t c nsider ec n mics and preparati n f ec n mic p licy.