HL.bF Concepts of ecological economics Notes

Ecological Economics and the Need for Degrowth

1. Ecological economics challenges the traditional focus on continuous economic growth, arguing that infinite growth on a finite planet is unsustainable.
2. Instead, it advocates for degrowth, zero growth, or slow growth, particularly in high-income countries, to achieve a balance between human consumption and the Earth's biocapacity.
3. The goal is to ensure that economic activities do not exceed the planet's ecological limits, promoting long-term sustainability.

Key Concepts in Ecological Economics

Degrowth

1. Degrowth is a planned reduction in consumption and production to reduce environmental pressures and promote well-being.
2. Focuses on reducing material throughput, shifting to local economies, and promoting non-market activities such as community engagement and shared resources.

Zero Growth (Steady-State Economy)

1. Advocates for an economy that maintains a stable size, where resource use does not exceed the Earth's regenerative capacity.
2. Prioritizes quality of life, redistribution of wealth, and sustainable living standards over GDP growth.

Slow Growth (Post-Growth Economy)

1. Suggests that economic growth should be gradual, sustainable, and within ecological limits.
2. Supports technological advancements and efficiency improvements to minimize environmental harm.

Balancing the Ecological Footprint with Biocapacity

1. Ecological Footprint: Measures the demand placed on Earth's ecosystems by human activities, including carbon emissions, land use, and resource consumption.
2. Biocapacity: The Earth’s ability to regenerate resources and absorb waste sustainably.
3. Overshoot: When a country’s ecological footprint exceeds its biocapacity, leading to resource depletion, biodiversity loss, and climate change.

Strategies to Align with Biocapacity

Reducing Overconsumption

Encouraging minimalism, sustainable lifestyles, and eco-friendly choices to lower ecological footprints.

Shifting to Renewable Energy

Investing in solar, wind, and hydropower to replace fossil fuels and reduce carbon footprints.

Sustainable Agriculture and Circular Economy

Moving away from industrial farming and excessive waste production toward regenerative agriculture and closed-loop production cycles.

Challenges and Criticisms of Degrowth

Economic and Social Resistance

Many governments and businesses prioritize economic expansion, fearing job losses and economic instability.

Global Inequality

Developing nations still require growth to improve living standards, while high-income countries should focus on reducing excess consumption.

Political and Policy Barriers

Current economic systems are designed around growth, making systemic change difficult.

Ecological Economics and Alternative Growth Models

1. Ecological economists advocate for slow, no, or zero growth models as alternatives to traditional GDP-driven economic expansion.
2. They argue that continuous growth is unsustainable due to finite natural resources and the ecological limits of the planet.
3. Instead, they emphasize a balance between human economic activities and the Earth's biocapacity to achieve long-term sustainability.

Alternative Growth Models in Ecological Economics

Slow Growth (Sustainable Growth Model)

1. Encourages gradual economic development while prioritizing environmental sustainability and social equity.
2. Supports investment in green technology, renewable energy, and circular economies.

Zero Growth (Steady-State Economy)

1. Aims for an economy that maintains a stable level of production and consumption without exceeding ecological limits.
2. Advocates wealth redistribution instead of wealth accumulation.

Degrowth (Planned Economic Contraction)

1. Calls for a deliberate reduction in production and consumption, especially in high-income nations, to reduce environmental pressures.
2. Promotes local economies, shared resources, and cooperative ownership.

Challenges in Implementing Alternative Economic Models

Dismantling Deeply Embedded Economic Systems

1. Capitalist economies are structured around continuous growth, making a shift to zero growth politically and economically difficult.
2. Governments depend on economic expansion for employment, public services, and debt repayment.

Measuring Social and Environmental Well-Being Objectively

1. Unlike GDP, social and ecological indicators are harder to quantify and may vary across cultures.
2. Alternative measures like the Human Development Index (HDI), Genuine Progress Indicator (GPI), and Ecological Footprint attempt to assess well-being but lack universal adoption.

Balancing the Ecological Footprint and Biocapacity

1. Ecological Footprint: The amount of natural resources and waste absorption capacity required to support economic activities.
2. Biocapacity: The planet’s ability to regenerate resources and absorb waste sustainably.
3. Sustainability Goal: Achieve a balance where human activities do not exceed Earth’s regenerative capacity.

Policies to Reduce the Ecological Footprint

Transitioning to a Circular Economy

Reducing waste and maximizing resource reuse to minimize environmental degradation.

Promoting Sustainable Consumption & Production

Encouraging minimalism, shared economies, and responsible consumption to lower material throughput.

Investing in Renewable Energy & Green Infrastructure

Shifting away from fossil fuels toward solar, wind, and hydroelectric energy to limit environmental harm.

Circular Economy and Doughnut Economics as Applications of Ecological Economics

1. Ecological economics promotes sustainable economic models that balance resource use and environmental limits.
2. Two prominent frameworks inspired by this approach are the circular economy and doughnut economics, both of which attempt to redefine economic success beyond traditional GDP measures.

Circular Economy: Redefining Resource Use

Concept

The circular economy is a system designed to eliminate waste and continuously reuse resources, in contrast to the linear "take-make-dispose" model.

It promotes:

1. Product Stewardship: Manufacturers, sellers, and consumers share responsibility for a product’s entire lifecycle.
2. Reuse, Repair, and Recycling: Materials are kept in circulation instead of being discarded as waste.
3. Renewable Energy and Efficiency: Production relies on clean energy and efficient resource use.

Challenges in Implementation

1. High Initial Costs: Transitioning industries to circular models requires substantial investment.
2. Consumer Behavior: People are still inclined towards convenience-driven, disposable culture.
3. Lack of Global Standards: Different countries define and enforce circular economy practices differently.

Doughnut Economics: Balancing Social and Environmental Needs

Concept

Developed by Kate Raworth, Doughnut Economics is a visual framework for sustainable development that seeks to balance:

1. The Social Foundation (Inner Circle): Ensuring basic human needs like food, water, education, healthcare, and political inclusion.
2. The Ecological Ceiling (Outer Circle): Avoiding environmental degradation such as climate change, biodiversity loss, and pollution.

Challenges in Implementation

1. Difficulty in Quantification: While attempts have been made to quantify doughnut economics for different countries, measuring both social and environmental well-being remains complex.
2. Political Resistance: Governments focused on GDP growth may resist policies that limit economic expansion.
3. Economic Inequality: Wealthier nations consume more than their share, making global implementation uneven.