I should begin by saying that there is apparently a newer edition of this book available (newer than the edition that I read and am going to review). I glanced at the table of contents and it looks like there are some brand new sections in the newer edition that are not in this edition so I would recommend that anyone thinking of reading this book attempt to get the newest addition if you can afford it.
This book really needs to be read by anyone with even a passing interest in economics. Economic theory is like quick sand and it is easy to get lost in interminable debates about really esoteric aspects of theory. These debates are extremely important since even the most esoteric aspects of economic theory can have huge consequences in terms of policy and peoples real lives. But, in my opinion, there are some practical questions facing us today that are so urgent we cannot really wait for definitive solutions to these esoteric theoretical debates before deciding to act. Of course we need some theory on which to base our practical policies but it is not always necessary to delve into the very depths of theory in order to know which policies are likely to be effective in producing desirable results. At this level there is likely to be a possibility for more general agreement even between theorists working in differing frameworks. This book will convince most readers that the ecological problems we are facing as a species are very urgent indeed and that there are some very workable policies which would most likely be extremely effective in meeting those challenges. And I am not just talking about global warming. In fact the problem of global warming is just one of the many, many issues that are discussed in this book so it really is not necessary to engage in endless discussions about whether global warming is a hoax or not (an absurd hypothesis in my opinion) since even if it were a hoax there are still plenty of other problems that are awaiting solutions. That the human species is beginning to have a real and serious effect on the biosphere and on the earth's stocks of non-renewable resources is undeniable whatever your opinion about global warming.
I know that textbooks are not usually the most exciting reading. After the 2008 crash I decided I wanted to learn a little bit more about economics in order to become a more informed citizen so I purchased and read a number of economics textbooks (as well as many other books). I can honestly say that out of all the textbooks I read this was the only one that I actually looked forward to picking up and reading. It is well written and extremely informative.
The book begins by explaining why the circular flow diagram which is presented at the beginning of every intermediate economics textbook is guilty of what the philosopher Alfred North Whitehead called "misplaced concreteness". The circular flow diagram is a diagram which charts the flow of value through the economy and since value is an abstract entity there is no reason this flow cannot continue to grow to infinity. The problem is that this circular flow of value is dependent on a physical flow of what the authors call 'throughput' which is the transformation of low-entropy energy into high-entropy waste. This flow cannot grow to infinity. It is limited by the finite stock of non-renewable resources on the earth and by the finite flow of energy from the sun. This principle is a fundamental law of the universe so in a field like economics where even the most basic principles are open to disagreement (the source of value for example) this particular principle is a paragon of certainty. The economy simply cannot continue to grow forever. To deny this would be tantamount to denying the second law of thermodynamics. The only question is whether we are close to reaching a point where growth is uneconomic and unsustainable or whether that point is still in the distant future. The authors do an excellent job of presenting the case that we are near or perhaps beyond that point.
The authors present a detailed portrait of the various natural resources the economy relies upon in order to sustain its circular flow of value and divides them up in terms of whether they are excludable or rival. They explain in detail all the various market failures in determining a sustainable level of resource use (to take one example: it is often argued that the price of oil will rise as the stocks of oil become depleted which will reduce oil consumption. As the authors point out, however, price is not an adequate measure of scarcity in this case because price measures the scarcity of flow rather than the scarcity of stock and we can extract oil at virtually any rate we want which will keep the price artificially low even as the stocks are dwindling, pg113). The authors also do a good job arguing that economics is unavoidably a normative science and cannot, therefore, ignore questions of justice in regard to distribution through recourse to supposedly objective measures such as Pareto optimality (even the Pareto optimum implies the normative judgement that envy at another's good fortune is a moral failing rather than a welfare loss for example). The authors also take very seriously the ethical problem of intertemporal distribution. I find it interesting that conservatives seem obsessed with the ethical implications of bequeathing financial debt to future generations but pay very little attention to the ethical problems relating to the intertemporal distribution of natural resources (which seems to me a much more important problem).
One of the most important ideas in this book is the idea that natural resource depletion is NOT a linear process at least when dealing with ecosystems or natural species like fish populations. Ecosystems and species populations generally have a certain critical point of self-sustainability beyond which they will collapse on their own. An ecosystem is a complex, self-sustaining system but it cannot continue to be self-sustaining if it is depleted beyond a certain point. Similarly with species populations. If we deplete a species to the point where its birthrate is less than its death rate the species will go extinct even if human beings immediately refrained from continued harvesting. The really important point to be made about this is that the critical point beyond which ecosystems or species populations are no longer self-sustaining is, in general, very difficult if not practically impossible for us to calculate. This gives us a very powerful reason to err on the side of caution when determining limits to our harvesting of natural resources. We cannot simply assume that when things start to go bad we can pull back and the ecosystem or species population will regenerate. If we have already gone beyond the critical point beyond which ecosystems or species are no longer self-sustaining it will already be too late.
And finally the authors present a really excellent final section outlining policies they believe would be effective in addressing all of the issues raised in the book. I will not attempt to summarize them here but this is probably the most interesting and important part of the book.
I will end how I began: this book needs to be read!
Download the free Kindle app and start reading Kindle books instantly on your smartphone, tablet, or computer - no Kindle device required.
Read instantly on your browser with Kindle for Web.
Using your mobile phone camera - scan the code below and download the Kindle app.
There is a newer edition of this item:
Ecological Economics, Second Edition: Principles and Applications
$68.30
(51)
Only 1 left in stock - order soon.
$68.30
(51)
Only 1 left in stock - order soon.
Discover the latest buzz-worthy books, from mysteries and romance to humor and nonfiction. Explore more
Customers who viewed this item also viewed
Page 1 of 1 Start overPage 1 of 1
- Ecological Economics, Second Edition: Principles and ApplicationsHardcoverFREE ShippingOnly 1 left in stock - order soon.
- Herman Daly’s Economics for a Full WorldPaperbackFREE Shipping by AmazonGet it as soon as Friday, Jan 3
About the author
Related products with free delivery on eligible orders
Page 1 of 1Start overPage 1 of 1
Sponsored | Try Prime for unlimited fast, free shipping
