ECOLOGICAL ECONOMICS

ECOLOGICAL ECONOMICS

Membawa “ekologi” ke dalam “ekonomi”

Four ‘conditions of an imperilled environment’ Kirkpatrick Sale

1. Drawdown: the process by which the dominant species in an ecosystem uses up the surrounding resources faster than they can be replaced.

2. Overshoot: when the use of resources in an ecosystem exceeds its carrying capacity and there is no way to recover or replace what is lost.

3. Crash: a precipitate decline in species numbers.4. Die-off: the extinction of species that cannot

reorganize their ecological functioning following a crash.

Konsep Ekologis digunakan untuk Ekonomi

Assimilative capacity: the capacity of the natural environment to absorb wastes

Regenerative capacity: the ability of the ecosystem to replace resources that we use in our production systems

Renewable resources, such as wood or wind energy, are in continuous supply, although the rate at which they can be replenished will vary from resource to resource

Non-renewable resources, such as iron ore or fossil fuels, are in limited supply within the earth’s crust, and thus once they are used up they cannot be replaced.

Problem Ekologi-Ekonomi yg harus dijawab

First, establish the ecological limits of sustainable scale and establish policies that assure that the throughput of the economy stays within these

limits. Second, establish a fair and just distribution of resources using systems of property rights and

transfers. . . Third, once the scale and distribution problems are

solved, market-based mechanisms can be used to allocate resources efficiently.

Introduction to Ecological Economics Costanza et al. (1997: 83)

DAERAH ALIRAN SUNGAI (DAS)

The concept of human behaviour that each embodies: whether the economic actor is a ‘rational economic man’ or a person who lives in balance with the environment;

The way in which nature itself is valued, whether in monetary or biophysical terms;

Judgements about the relationship between sustainable development and growth;

The extent to which economics should be considered as a scientific study;

Differing emphasis on issues of distribution and justice.

Lahirnya “Disiplin” ini

Founded in the late 1980s Launch of the journal Ecological Economics in 1987 US and European have different emphasis Scathing about neoclassical economics: "The individualism of current economic theory is manifest in

the purely self-interested behavior it generally assumes. It has no real place for fairness, malevolence, and benevolence, nor for the preservation of human life or any other moral concern.“ Herman Daly

Herman Daly"The economy is a wholly

owned subsidiary of the environment, not the reverse."

Professor at the University of Maryland

Senior Economist in the Environment Department of the World Bank

Developed the concept of ‘sustainable development’ and also that of ‘uneconomic growth’

Un-economic growth; cf. John Ruskin’s ‘illth’

The rightward-sloping curve above the horizontal axis illustrates the benefits of

growth, while the broken curve represents the cost of that growth – the impact the

economic activity has on the ecosystem. Daly’s concept of uneconomic growth

arises when the costs of economic activity outweigh the benefit, any point beyond B on the horizontal axis, where ab = bc, or the costs and benefits of the economic

activity are equivalent.

Once an economy grows beyond that point, the extra economic growth is of less value

than the damage the activity has on the ecosystem. By the time you get to point E

you have reached what Daly calls the ‘futility limit’—you have so much stuff that

you no longer have time to enjoy it!

Point D represents ‘the catastrophe limit’, where an impressive new invention turns out to have terminally destructive impacts on the ecosystem—perhaps a genetically modified crop including a terminator gene

which spreads to all plants and thus destroys the process of photosynthesis and

all life on earth.

Most neoclassical economists assume that technological advance will outpace resource scarcity

over the long run and that ecological services can also be replaced by new technologies.

Ecological economists, on the other hand, assume that resource and ecological limits are critically important

and are much less confident that technological advances will arise in response to higher prices

generated by scarcities. This difference in worldview, however, does not prevent

neoclassical and ecological economists from sharing the same pattern of reasoning.(Costanza et al., 1997: 69).

Visi Ekologi-Ekonomi

The earth as a closed system: limits to material and energy throughputs and wastes

A future of material well-being with ourselves and other species while respecting the first point

Systems are complex and causal pathways uncertain, hence the need for a precautionary approach

Institutions should be proactive and should respond in spite of scientific uncertainties

SISTEM BUMI

Beragam Makna “Keberlanjutan”1. Neoclassical environmental

economists favour a goal of weak sustainability (technology will lead to physical capital substituting for natural capital) and sought to adopt an objective stance.

2. Ecological economists favour a goal of strong sustainability (physical capital cannot substitute for natural capital) and are less concerned to prevent their personal viewpoint from impinging on their analysis.

Kekuatan & Kelemahan “Keberlanjutan”

Weak sustainability: environmental sustainability should be balanced with the need to continue economic growth

Weak sustainability assumes that different forms of capital are substitutable with one another, therefore sustainability is achieved even if all natural capital is replaced with man-made capital

Strong sustainability considers natural capital to be primary and sacrosanct

Behind the notion of capitalism lies the notion of capital – which economists use to describe a stock of anything (physical or virtual) from which anyone can

extract a revenue or yield. . . . (as in any stock capable of generating a flow). . .

The Five Capitals Framework requires a more holistic understanding of all the different stocks of capital on

which our wealth depends . . . Sustainability can only be achieved if these stocks of

capital are kept intact or increased over time.

(Porritt, 2009: 30-1).

Lima Macam Kapital

We are facing a sustainability crisis

because we're consuming our stocks of natural, human and

social capital faster than they are being

produced.

Unless we control the rate of this

consumption, we can't sustain these vital

stocks in the long-term.

Forum for the Future

Modal Alam - Natural capital1. Any stock or flow of energy

and material that produces goods and services. It includes:

2. Resources - renewable and non-renewable materials

3. Sinks - that absorb, neutralise or recycle wastes

4. Processes - such as climate regulation

5. Natural capital is the basis not only of production but of life itself!

.... Hutan Tanaman Industri... Jati...

Modal Manusia & Modal Sosial

1. Human Capital consists of people's health, knowledge, skills and motivation. All these things are needed for productive work.

2. Enhancing human capital through education and training is central to a flourishing economy.

3. Social Capital concerns the institutions that help us maintain and develop human capital in partnership with others; e.g. families, communities, businesses, trade unions, schools, and voluntary organisations.

Modal Manufaktur & Modal Finansial

1. Manufactured Capital comprises material goods or fixed assets which contribute to the production process rather than being the output itself – e.g. tools, machines and buildings.

2. Financial Capital plays an important role in our economy, enabling the other types of Capital to be owned and traded. But unlike the other types, it has no real value itself but is representative of natural, human, social or manufactured capital; e.g. shares, bonds or banknotes.

Problematika ..............

Once capital is allowed to exist as a real entity in the economy, rather than as what Marx called an

‘epiphenomenon’, i.e. something that is superficial to the real machinery of the economy, it becomes possible to argue both that we can substitute one

form of capital for another, and that we can substitute consumption in one time-period for

consumption in another

Rationalita Manusia Ekonomi?

1. Individualist motivation

2. Rational decision-making

3. Clear definition of ‘utility’

4. Biologically determined, or culturally relative?

5. Is there a gender dimension?