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Definition and vision

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Herman Daly defines his concept of a steady-state economy as an economic system made up of a constant stock of physical wealth (capital) and a constant stock of people (population), both stocks to be maintained by a flow of natural resources through the system. The first component, the constant stocks, is similar to the concept of the stationary state, earlier used in classical economics; the second component, the flow of natural resources, is a new ecological feature, presently also used in the academic discipline of ecological economics. The durability of both of the constant stocks is to be maximized: The more durable the stock of capital is, the smaller the flow of natural resources is needed to maintain the stock; likewise, a 'durable' population means a population enjoying a high life expectancy – something desirable by itself – maintained by a low birth rate and an equally low death rate. Taken together, higher durability translates into better ecology in the system as a whole.[1]: 14–19 

Daly's concept of a steady-state economy is based on the vision that man's economy is an open subsystem embedded in a finite natural environment of scarce resources and fragile ecosystems. The economy is maintained by importing valuable natural resources from the input end and exporting valueless waste and pollution at the output end in a constant and irreversible flow. Any subsystem of a finite nongrowing system must itself at some point also become nongrowing and start maintaining itself in a steady-state as far as possible. This vision is opposed to mainstream neoclassical economics, where the economy is represented by an isolated and circular model with goods and services exchanging endlessly between companies and households, without exhibiting any physical contact to the natural environment.[2]: xiii 

In the early 2010s, reviewers sympathetic towards Daly's concept of a steady-state economy have passed the concurrent judgement that although his concept remains beyond what is politically feasible at present, there is room for mainstream thinking and collective action to approach the concept in the future.[3]: 549  [4]: 84  [5]: 83 

Ecological economics
[6] [7] [8] [9] [10] [11]

Herman Daly's concept
[4]: 81f  [2] [1] [12]: 117–124  [13] [3]: 549  [5]: 146–148  [2]: xiii  [2]: 21f  [2]: 23  [2]: 36  [2]: 41  [2]: 69  [2]: xvi  [14]: 366–369  [15]: 165–167  [1]: 369  [1]: 370  [16]: 105–107  [17]: 270  [18]: 37 

Criticisms and rebuttals thereof
[19] [20] [21] [22] [23]: chap. 5  [24] [23]: 111  [25]

References

  1. ^ a b c d Daly, Herman E. (1980). Economics, Ecology, Ethics. Essays Towards a Steady-State Economy (PDF contains only the introductory chapter of the book) (2nd ed.). San Francisco: W.H. Freeman and Company. ISBN 0716711788.
  2. ^ a b c d e f g h i Daly, Herman E. (1991). Steady-state economics (2nd ed.). Washington, D.C.: Island Press. ISBN 1559630728.
  3. ^ a b Kerschner, Christian (2010). "Economic de-growth vs. steady-state economy" (PDF). Journal of Cleaner Production. 18 (6): 544–551. doi:10.1016/j.jclepro.2009.10.019.
  4. ^ a b Anderson, Mark W. (2012). "Economics, Steady State" (PDF). The Berkshire Encyclopedia of Sustainability: The Future of Sustainability. Great Barrington: Berkshire Publishing Group.
  5. ^ a b Perez-Carmona, Alexander (2013). "Growth: A Discussion of the Margins of Economic and Ecological Thought". In Meuleman, Louis, ed. (ed.). Transgovernance. Advancing Sustainability Governance. Heidelberg: Springer. pp. 83–161. doi:10.1007/978-3-642-28009-2_3. ISBN 9783642280085. {{cite book}}: |editor-first= has generic name (help); |format= requires |url= (help)CS1 maint: multiple names: editors list (link)
  6. ^ Georgescu-Roegen, Nicholas (1971). The Entropy Law and the Economic Process (Full book accessible in three parts at SlideShare). Cambridge, Massachusetts: Harvard University Press. ISBN 0674257804.
  7. ^ Schumacher, E. F. (1973). Small Is Beautiful: Economics As If People Mattered (PDF contains full book). New York: Harper and Row Publishers. ISBN 0061317780.
  8. ^ Boulding, Kenneth E. (1966). "The Economics of the Coming Spaceship Earth" (PDF). In Jarrett, Henry, ed. (ed.). Environmental Quality in a Growing Economy. Baltimore, Maryland: Johns Hopkins University Press. {{cite book}}: |editor-first= has generic name (help)CS1 maint: multiple names: editors list (link)
  9. ^ Røpke, Inge (2004). "The early history of modern ecological economics" (PDF). Ecological Economics. 50 (3–4). Amsterdam: Elsevier: 293–314. doi:10.1016/j.ecolecon.2004.02.012.
  10. ^ Daly, Herman E.; Farley, Joshua (2011). Ecological Economics. Principles and Applications (PDF contains full textbook) (2nd ed.). Washington, D.C.: Island Press. ISBN 9781597266819.
  11. ^ Common, Michael; Stagl, Sigrid (2005). Ecological Economics: An Introduction (PDF contains full textbook). Cambridge: Cambridge University Press. ISBN 9780521816458.
  12. ^ Daly, Herman E. (2006). "The steady-state economy and peak oil". In Daly, Herman E. (2007) (ed.). Ecological Economics and Sustainable Development. Selected Essays of Herman Daly (PDF contains full book). Cheltenham: Edward Elgar. ISBN 9781847201010.{{cite book}}: CS1 maint: numeric names: editors list (link)
  13. ^ "CASSE, Center for the Advancement of the Steady State Economy".
  14. ^ Georgescu-Roegen, Nicholas (1975). "Energy and Economic Myths" (PDF). Southern Economic Journal. 41 (3). doi:10.2307/1056148. JSTOR 1056148.
  15. ^ Boulding, Kenneth E. (1981). Evolutionary Economics. Beverly Hills: Sage Publications. ISBN 0803916485.
  16. ^ Faber, Malte [in German]; et al. (1996). "Entropy: A Unifying Concept for Ecological Economics". In Faber, Malte, eds. [in German]; et al. (eds.). Ecological Economics: Concepts and Methods. Cheltenham: Edward Elgar. ISBN 1858982839. {{cite book}}: |editor-first= has generic name (help)CS1 maint: multiple names: editors list (link)
  17. ^ Bonaiuti, Mauro (2008). "Searching for a Shared Imaginary — A Systemic Approach to Degrowth and Politics". In Flipo, Fabrice; Schneider, François, eds. [in French] (eds.). Proceedings of the First International Conference on Economic De-Growth for Ecological Sustainability and Social Equity (PDF contains all conference proceedings). Paris. {{cite book}}: |editor2-first= has generic name (help)CS1 maint: location missing publisher (link) CS1 maint: multiple names: editors list (link)
  18. ^ Valero Capilla, Antonio; Valero Delgado, Alicia (2014). Thanatia: The Destiny of the Earth's Mineral Resources. A Thermodynamic Cradle-to-Cradle Assessment (PDF contains only the introductory chapter of the book). Singapore: World Scientific Publishing. doi:10.1142/7323. ISBN 9789814273930.
  19. ^ von Weizsäcker, Ernst; et al. (1998). Factor Four: Doubling Wealth, Halving Resource Use (PDF contains only an extract of the book). London: Earthscan. doi:10.1007/978-3-319-03662-5_11. ISBN 9781853834066.
  20. ^ von Weizsäcker, Ernst; et al. (2009). "Factor Five: Transforming the Global Economy Through 80 % Improvements in Resource Productivity". Factor Five: Transforming the Global Economy through 80% Improvements in Resource Productivity (Book info website). SpringerBriefs on Pioneers in Science and Practice. Vol. 28. London: Routledge. pp. 192–213. doi:10.1007/978-3-319-03662-5_17. ISBN 9781844075911. {{cite book}}: |website= ignored (help)
  21. ^ Jackson, Tim (2009). Prosperity without Growth. Economics for a Finite Planet (PDF contains full book). London: Earthscan. ISBN 9781844078943.
  22. ^ Czech, Brian (2000). Shoveling Fuel for a Runaway Train: Errant Economists, Shameful Spenders, and a Plan to Stop Them All (Book info page at publisher's site). Berkeley, CA: University of California Press. ISBN 9780520225145.
  23. ^ a b Huesemann, Michael H.; Huesemann, Joyce A. (2011). Techno-Fix: Why Technology Won't Save Us or the Environment (Book info website). Gabriola Island: New Society Publishers. ISBN 9780865717046.
  24. ^ Cleveland, Cutler J.; Ruth, Matthias (1998). "Indicators of Dematerialization and the Materials Intensity of Use". Journal of Industrial Ecology. 2 (3). Hoboken, NJ: John Wiley & Sons: 15–50. doi:10.1162/jiec.1998.2.3.15. S2CID 153936260.
  25. ^ Trainer, Ted (2011). "The radical implications of a zero growth economy" (PDF). real-world economics review (57). Bristol: World Economics Association: 71–82.
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