Economics

Planetary Boundaries We need of governance solutions to ecological crises that respect Planetary Boundaries. By re-embedding the economy into biophysical and social processes we can democratically promote degrowth that is both equitable and sustainable. We are faced with a growing ecological crisis, yet our anemic response fails to respect planetary boundaries (PBs), and this can augur tipping points from which we may not be able to recover. Researchers have proposed various approaches to address this issue including re-embedding the economy into biophysical and social processes, but it is unclear why they have not been implemented. I will review the literature and...

This paper explains, contrasts, and critiques ecological economics (EE) and classical economics (CE). It examines the normalized assumptions from CE and some of the ways that EE can address salient critiques. It concludes by suggesting that to be effective EE needs a theoretical orientation. EE focuses on the interconnectedness between nature, society, and the economy (Lundgren, 2022). Its origins are a reaction to the multiple failures of existing mainstream disciplines and its theoretical inspiration is derived from the laws of thermodynamics, specifically entropy or resource-based critiques of neoclassical economics (ibid, Martinez p. 3, 2015).  EE sees the economy as being...

What are the different economic systems and what is a sustainable economy? These are important questions that need to be asked in light of the fact that the prevailing economic systems are not working. It is becoming increasingly clear that we require a paradigm shift to address pressing social and environmental problems. The brown economy continues to dominate and it is driving many of the world's most pressing problems. There are however alternative economic systems like the green economy and the blue economy which are capable of meeting the needs of current generations without compromising the needs of future generations....

Sustainable economic systems are focused on sustainable development rather than economic growth. The four types of economic systems all have environmental implications as do the three types of economies reviewed in this post (brown, blue, and green). It should be stated at the outset that most modern economies are mixed but increasingly climate change, air pollution, and environmental degradation are driving efforts to transition away from the brown economy toward both the blue and the green economies. Brown Economy A brown economy is one in which economic growth is largely dependent on environmentally destructive forms of activity, especially fossil fuels...

When it comes to the economy there are many ways that we can categorize different approaches . One of the ways we can do this is through color-coding these different economic approaches. Here is a brief description of ten colors that can be used to describe different areas of economic focus:  Brown, green, blue, golden, purple, white, silver, red, gray, and black economies. Some of these color-coded economic systems have dual meanings so in several cases asterisks and brief footnotes have been added to briefly define alternate meanings. 1. The brown economy A brown economy is focused on economic growth that...

Major banks have been slow to act but it appears as thought they are moving away from dirty energy. Big lending institutions have have pledged to support emissions reductions consistent with the Paris Climate agreement, however, until recently their words have not matched their deeds.   Banks have been involved with sustainability for years and many have set sustainability investment goals. Almost ten years ago Bank of America and Wells Fargo each committed $50 billion for financing sustainable initiatives and green transport. In 2015 Citigroup announced that they would invest 150 billion in sustainability.  Valerie Smith, director of corporate sustainability at...

The COVID-19 pandemic has exposed fault lines that highlight weaknesses in our economic system. Unfettered capitalism imperils biodiversity and endangers the future of civilization. Julia Steinberger echoes these sentiments saying that confronting capitalism is the only way we can "avoid disaster". We will not be able to protect the natural world or combat global warming without changes in corporate governance and more specifically the fiduciary obligation to deliver profits. Even more fundamentally we need to challenge the business ethos that seeks profit at the expense of everything else. Our metrics must reflect the costs and the risks associated with environmental...

COVID-19 has caused massive energy job losses. Some sectors have been hit harder than others and while many energy jobs will return others may not. Our economies will be decimated by the coronavirus and millions of jobs have disappeared forever, however, there is an upside to this deadly pandemic that bodes well for employment opportunities in some sectors over the long term. This is the worst unemployment situation since the Great Depression. So far 36 million Americans have lost their jobs and according to Fed estimates, a total of 47 million jobs could be lost resulting in an unemployment rate...

  Technologies that draw down carbon represent a massive economic opportunity. The global carbon capture and sequestration market is projected to reach USD 8.05 billion by 2021, representing a compounded annual growth rate of 13.6 percent from 2016 to 2021.  According to FMI, the carbon capture and sequestration market will be valued at US$ 4.2 billion in 2024. The carbon capture and sequestration is predicted to rise at a staggering CAGR of 20.1% from 2024 to 2034. The global market is anticipated to reach US$ 26.1 billion by 2034. According to some estimates carbon capture and utilization (CCU)** alone will...

Cost is a commonly cited reason for resistance to climate action, however when we factor co-benefits and the real costs of inaction the logic for action is overwhelming  Research shows that when we include reduced death and disease as well as increased technological innovation and other co-benefits, the costs of climate action offer a  net economic benefit. When we add up the costs of action and compare them to the costs of inaction the value equation becomes clear.  The benefits of climate action far outweigh the costs.  This includes $160 trillion dollars worth of savings associated with climate action and...