ECOLOGICAL ECONOMICS IDARI TRAINING PROGRAMME

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ECOLOGICAL ECONOMICS IDARI TRAINING PROGRAMME School of the Environment Dr Sigrid Stagl University of Leeds Ph. 0113-343-6787 Leeds LS2 9JT, UK Fax. 0113-343-6716 21-25 July 2003 Email. sts@env.leeds.ac.uk Introduction The main areas covered in this course are: The basic assumptions of ecological economic analysis; analytical frameworks applied by ecological economists; and institutional arrangements suggested for sustainable development. The course draws on contemporary economic thought as well as material from such fields as evolutionary biology, ecology, nonequilibrium systems theory, social psychology and environmental ethics. You will undertake independent research within the overall structure of a reading list, seminar and lecture plan. Aims To understand the relationship between economic, social and biophysical systems; To appreciate the interdisciplinary approach for the analysis of environmental issues; To become familiar with the analysis of energy and material flows in the economy; To understand the ethical, social and behavioural foundations of human well-being; To have a critical awareness of the issues relating to environmental valuation (incl. role of discounting and incommensurability of values). Form of teaching 5 x 3 hours of integrated lectures and discussions and 5 x 2 hours exercises. You are expected to take an active part in the discussions and exercises. For this course you will write one individual essay (2,000-2,500 words) and contribute to a group project. The course leader will suggest topics for both tasks, but each student/group can make a case for other topics related to contents covered in this course. Day Time Topics Mo 21 July 9-10:30 History (and Meaning) of Ecological Economics 11-12:30 Ecological Principles 14-16 Exercise: Read an article critically and draw a mind map Tue 22 July 9-10:30 Transferring Ecological Concepts into Economics 11-12:30 Economic Growth and Thermodynamics 14-16 Exercise: Estimating Environmental Kuznets Curve Wed 23 July 9-10:30 Sustainable Development 11-12:30 Natural Capital 14-16 Exercise: Fish Bank Game Thu 24 July 9-10:30 Values and Behaviour 11-12:30 Uncertainty and Risk 14-16 Exercise: Multicriteria Evaluation Fri 25 July 9-10:30 Participation and Institutional Change 11-12:30 Ecological Economics and Integrated Rural Development 14-16 Exercise: Vensim modelling

Preparation and Participation You are asked to read the key texts and a choice of the other texts. For the latter, you can choose them according to your interests and background, but I encourage you to read as many of these texts as possible. When interacting with your readings you should maintain a journal in which you criticize the texts, develop questions and discussion ideas, and develop ideas for your essay and group project. For the critical review of the readings try to develop a structure, i.e. some questions which you ask yourself about each text. The following questions are indicative and you may want to refer to them when writing your journal. 1. What is the subject matter or focus of the readings? For example, is the focus substantive, theoretical, or some combination? Does the reading deal with a specific empirical problem or a conceptual issue? Integrating ideas from different disciplines? 2. What is the question, argument, theory or perspective of the readings? Is it vague or is it clear? Is it implicit or explicit? 3. What is the research method (or rather research design) used in the readings? Is the method appropriate? Is it well used? 4. What type of evidence is used? How appropriate and adequate is the evidence? 5. What are the findings and conclusions? Are they defensible in light of method and evidence? 6. What are the assumptions or preferences (explicit or implicit) on which the particular research is based? 7. In what ways could the research be improved (given its intellectual and political priorities)? 8. In what ways do these readings converge, differ or complement each other or other relevant material you are familiar with? Form of Assessment Students' performance will be evaluated through two elements 30% group exercises (10% each; deadline - tba) and 70% individually written essay (deadline tba). Main Books Bergh, J. C. J. M. v. d. and Straaten, J. v. d. 1997 Economy and Ecosystems in Change Analytical and Historical Approaches, Cheltenham, UK: Edward Elgar. Ecological Economics. Cleveland, C. J., Stern, D. I. and Costanza, R. 2001 The Economics of Nature and the Nature of Economics, Cheltenham: Edward Elgar. Daly, H. E. 1996 Beyond Growth: The Economics of Sustainable Development, Boston: Beacon Press. Faber, M. and Proops, J. (eds) 1996 Ecological Economics: Concepts and Methods, Cheltenham, UK: Edward Elgar. 2

Harris, J. M. 2002 Environmental and Natural Resource Economics: A Contemporary Approach, Boston; New York: Houghton Mifflin Company. Norgaard, R. B. 1994 Development Betrayed: The End of Progress and a Coevolutionary Revisioning of the Future, London; New York: Routledge. O'Connor, M. and Spash, C. 1999 Valuation and the Environment: Theory, Method, and Practice, Cheltenham, UK: E. Elgar Pub. Recommended Classic Books Costanza, R. 1991 Ecological Economics: The Science and Management of Sustainability, New York: Columbia University Press. Daly, H. E. and Cobb, J. B. J. 1989 For the Common Good. Redirecting the Economy Toward Community, the Environment, and a Sustainable Future, Boston, Massachusetts: Beacon Press. Daly, H. E. 1977 Steady-State Economics: The Economics of Biophysical Equilibrium and Moral Growth, San Francisco: W. H. Freeman. There are several journals, which you can refer to, especially for individual research. These include: Ecological Economics Environment and Planning (A) and (C) Environmental Politics Environmental Values (abstracts online http://www.erica.demon.co.uk/) Journal of Environmental Management Journal of Industrial Ecology International Journal of Environment and Pollution International Journal of Sustainable Development Land Economics Schedule and reading assignments Background: Environmental Economics (for non-economists) Harris, Jonathan M. (2002) Environmental and Natural Resource Economics: A Contemporary Approach. Boston: Houghton Mifflin Company (esp. Part Two: 35-118). Bergh, J. C. J. M. v. d., 2002. Environmental economics. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. 21 July 2003 History (and Meaning) of Ecological Economics Proops, J., 2002. Identification of ecological economics issues. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Harris, J. M. 2002 Environmental and Natural Resource Economics: A Contemporary Approach, Boston; New York: Houghton Mifflin Company: 3-16. Martínez Alier, J. 2000 'Ecological Economics' International Encyclopedia of the Social and Behavioral Sciences, Vol. Article 4.9. [http://www.h-economica.uab.es/unitat/papers/5-2001.pdf] 3

Spash, C. L. 1999 'The Development of Environmental Thinking in Economics', Environmental Values (8): 413-435. Ecological Economics, chapter 2.1. History of ecological economic thought Christensen, P. P. 2001 'Early links between sciences of nature and economics: historical perspectives for ecological and social economics', in C. J. Cleveland, D. I. Stern and R. Costanza (eds) The Economics of Nature and the Nature of Economics, Cheltenham, UK: Edward Elgar. Martínez Alier, J. and Schlüpmann, K. 1987 Ecological economics: energy, environment, and society, Oxford [Oxfordshire]; New York, NY, USA: Basil Blackwell. Key concerns Institute, W., 2003. State of the World 2003 - Progress Towards a Sustainable Society. Earthscan, London. United Nations Development Programme (UNDP), 2003. Human Development Report 2003 - Millennium Development Goals: A compact among nations to end human poverty. Oxford University Press, New York; Oxford. [http://hdr.undp.org/] European Environment Agency (EEA) 2002 'Environmental Signals 2002: Benchmarking the Millennium', Copenhagen. [http://www.eea.eu.int/] Worldwatch Institute (eds) 2002 Vital Signs: 2002-2003, The Trends That Are Shaping Our Future, London: Earthscan Publications. World Bank 2002 'World Development Report 2003: Sustainable Development in a Dynamic Economy', Washington, D.C. [http://www.worldbank.org/] World Resources Institute, United Nations Development Programme, United Nations Environment Programme and World Bank 2000 World Resources 2000-2001: People and Ecosystems the Fraying Web of Life, Washington, D.C.: World Resources Institute. Key concepts Munda, G. 1997 'Environmental economics, ecological economics, and the concept of sustainable development', Environmental Values 6(2): 213-233. Bergh, J. C. J. M. v. d. 2000 'Ecological Economics: Themes, Approaches, and Differences with Environmental Economics', Amsterdam: Tinbergen Institute Discussion Paper. [http://www.tinbergen.nl/] Faber, M. and Proops, J. (eds) 1996 Ecological Economics: Concepts and Methods, Cheltenham, UK: Edward Elgar, chapters 1-4. 21 July 2003 Ecological Principles Ecological Economics, chapter 3.2. Holland, A. 1996 'The use and abuse of ecological concepts in environmental ethics', in N. S. Cooper and R. C. J. Carling (eds) Ecologists and Ethical Judgements, London: Chapman and Hall. Jarvis, P. J. 2000 Ecological Principles and Environmental Issues, Harlow: Prentice Hall. 4

McIntosh 1986 The Background of Ecology: Concept and Theory, Cambridge: Cambridge University Press. "Insight review articles" in Nature (vol 405, May 2000), which cover biodiversity. They can be downloaded free of charge as.pdf files: http://www.nature.com/nature/insights/6783.html 22 July 2003 Transferring Ecological Concepts into Economics Ecological Economics, chapter 2.2 and 2.3. Mulder, P. and van den Bergh, J. C. J. M. 2001 'Evolutionary economic theories of sustainable development', Growth and Change 32 (Winter): 110-134. Sui, D. Z., 2002. Economy as ecosystems. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Holling, C. S., Schindler, D. W., Walker, B. W. and Roughgarden, J. 1995 'Biodiversity in the functioning of ecosystems: an ecological synthesis', in K.-G. M. C. Perrings, C. Folke, C. S. Holling and B.-O. Jansson (ed) Biodiversity Loss: Economics and Ecological Issues, Cambridge: Cambridge University Press. Faber, M. and Proops, J. (eds) 1996 Ecological Economics: Concepts and Methods, Cheltenham, UK: Edward Elgar, chapter 13: Co-evolution Gowdy, J. M. 1994 Coevolutionary economics: the economy, society, and the environment, Boston: Kluwer Academic Publishers. Hadfield, L. and Seaton, R. A. F. 1999 'A co-evolutionary model of change in environmental management', Futures 31(Aug): 577-592. Norgaard, R. 1988 'Sustainable development: A co-evolutionary view', Futures 20(Dec.): 606-620. Norgaard, R. B. 1994 Development Betrayed: The End of Progress and a Coevolutionary Revisioning of the Future, London; New York: Routledge. Functioning and Resilience Brock, W. A., Maler, K., Perrings, C. 2002 Resilience and sustainability: the economic analysis of nonlinear dynamic systems, in L. Gunderson and C. S. Holling (eds) Panarchy: Understanding Transformations in Human and Natural systems, Washington, D.C; London: Island Press: 261-289. Holling, C. S. and Gunderson, L. H. 2002 'Resilience and apative cycles', in L. Gunderson and C. S. Holling (eds) Panarchy: Understanding Transformations in Human and Natural systems, Washington, D.C; London: Island Press: 25-62. Safe Minimum Standard Bishop, R. C. 1978 'Endangered species and uncertainty: the economics of a safe minimum standard', American Journal of Agricultural Economics 60: 10-18. Bishop, R. C. 1979 'Endangered species and uncertainty: A reply', American Journal of Agricultural Economics 61: 376-379. 5

Ciriacy-Wantrup, S. 1952 Resource Conservation: Economics and Policies, Berkeley: University of California Press. Industrial Ecology Harris, J. M. 2002 Environmental and Natural Resource Economics: A Contemporary Approach, Boston; New York: Houghton Mifflin Company: 351-373. Deep Ecology Naess, A. 1989 Ecology, Community and Lifestyle: Outline of an Ecosophy, Cambridge: Cambridge University Press. Sessions, G., Ed. (1995) Deep Ecology for the 21 st Century. Boston, Massachusetts: Shambhala Publications. Land Ethic Leopold, A. (1960) A Sand County Almanac and Sketches Here and There. Oxford, England: Oxford University Press. 22 July 2003 Economic Growth and Thermodynamics Cleveland, C. J., 2002. Biophysical constraints to economic growth. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Harris, Jonathan M. (2002) Environmental and Natural Resource Economics: A Contemporary Approach. Boston; New York: Houghton Mifflin Company: 17-34. Stern, D. I. 2001 'The environmental Kuznets curve: a review', in C. J. Cleveland, D. I. Stern and R. Costanza (eds) The Economics of Nature and the Nature of Economics, Cheltenham, UK: Edward Elgar: 193-217. Hinterberger, F., Luks, F. and Stewen, M., 2002. Economics growth and sustainable development. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Funtowicz, S. O. and Ravetz, J. R. 1997 'The poetry of thermodynamics; Energy, entropy/exergy and quality', Futures 29(9): 791-810. Boulding, Kenneth E. (1997) 'The economics of the coming spaceship Earth' in Costanza, Robert, Perrings, Charles and Cleveland, Cutler J. (eds.) The Development of Ecological Economics. Brookfield, VT: Edward Elgar. Daly, Herman E. (1996) Beyond Growth: The Economics of Sustainable Development. Boston: Beacon Press. Faber, M. and Proops, J. (eds) 1996 Ecological Economics: Concepts and Methods, Cheltenham, UK: Edward Elgar, chapters 6 and 7. Thermodynamics and Entropy Ayres, R. U. 1998 'Eco-thermodynamics: economics and the second law', Ecological Economics 26(2): 189-209. Georgescu-Roegen, N. "Energy and Economic Myths." Southern Economic Journal 41, no.3 (January 1975). Selections reprinted in H.E. Daly (Editor) Economics, Ecology, Ethics: Essays Towards a Steady-State Economy. San Francisco: W.H. Freeman, 1980. Georgescu-Roegen, N. 1971 The Entropy Law and the Economic Process, Cambridge, Mass.,: Harvard University Press. 6

Gowdy, J. and Mesner, S. 1998 'The Evolution of Georgescu-Roegen's Bioeconomics', Review of Social Economy 56(2): 136-56. Khalil, E. L. 1990 'Entropy law and exhaustion of natural resources Is Nicholas Georgescu- Roegen's paradigm defensible?' Ecological Economics 2(2): 163-178. Khalil, E. L. 1991 'Entropy law and Nicholas Georgescu-Roegen's paradigm: A reply', Ecological Economics 3(2): 161-163. Lozada, G. A. 1991 'A defense of Nicholas Georgescu-Roegen's paradigm', Ecological Economics 3(2): 157-160. O'Connor, M. 1991 'Entropy, structure, and organisational change', Ecological Economics 3(2): 95-122. Young, J.T. 1991 Is the entropy law relevant to the economics of natural resource scarcity? Journal of Environmental Economics and Management. 21 (September):169-179. Environmental Kuznets Curve Ekins, P. 2000 Economic Growth and Environmental Sustainability: The Prospects for Green Growth, London: Routledge. Economic Growth Hirsch, F. 1976 Social Limits to Growth, Cambridge, Mass.: Harvard University Press. Meadows, D. H., Meadows, D. L., Randers, J. and Behrens III, W. W. 1972 The Limits to Growth. A report for the Club of Rome's Project on the Predicament of Mankind, New York,: Universe Books. Munasinghe, M., Sunkel, O. and Miguel, C. d. 2001 The Sustainability of Long-term Growth: Socioeconomic and Ecological perspectives, Cheltenham: Edward Elgar. 23 July 2003 Sustainable Development Bell, D. V. J. and Cheung, Y.-k. A., 2002. Introduction to sustainable development. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Gowdy, J. M. and Walton, M., 2002. Sustainability concepts in ecological economics. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Viederman, S., 2002. Sustainability. In: UNESCO (ed) Knowledge for Sustainable Development: An Insight into the Encyclopedia of Life Support Systems, Paris; London: Imprint. Beckerman, W. 1994 'Sustainable development: is it a useful concept?' Environmental Values 3(3): 191-209. Daly, H. E. 1995 'On Wilfred Beckerman's critique of sustainable development', Environmental Values 4: 50. Dobson, A. 1996 'Environmental Sustainabilities: An Analysis and a Typology', Environmental Politics 5(3): 401-428. Spash, C. L. 1993 'Economics, ethics, and long-term environmental damages', Environmental Ethics 15(2): 117-132. Ecological Economics, chapter 3.1., 3.3 and 3.4 7

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