MbShea@PWP@English@UMCP

ABSTRACT: Robert Costanza, ecological economists argues that neo-classical economics are inherently unsustainable and are in need of immediate reform in his revolutionary 1992 publication. Economics are usually centered around maximizing growth. However, ecological economics offers an alternative where development is favored over growth. Natural capital is essential for producing goods and services for the market. However neo-classical economics does not place any direct value on natural capital or the ecosystem services they provide. Ecological economics provides a way of incorporating the externalities of natural capital into a workable economic system. There are many alternative approaches taken by different ecological economist to incorporate natural capital. Peter Barnes (entrepreneur) argues that natural capital should be assigned a value based on science, and entrusted into a commons wealth. Barnes envisions a system in which people collectively own natural capital, and paid a portion of the profits made off of the natural capital. In this way Barnes hopes to control excessive use and depletion of natural capital by large corporations seeking a profit. While many of these concepts of ecological economics have yet to be implemented on a large scale there are a few examples of ecological economics in practice. The Alaskan Permanent fund is one example of a commons trust that Barnes references in his book. Gretchen Daily (Bing Professor of Environmental Science) and her colleagues working with the Natural Capital Project offer a conceptual framework for advancing the vision of the Millennium Ecosystem Assessment in valuing natural capital.

READER’S RESPONSE: Hmmm. Skeptical that significant reform of neo-classical economics can be accomplished. Especially impractical in a system where corporations and the elite have the power to perpetuate their own capitals gains and maintain an unsustainable economic structure. In order to make the fundamentals of ecological economics a reality two changes need to be made. First, the science of ecosystem services needs to be advanced in order to support the assertions of ecological economists. Second, institutions need to be given incentives to incorporate ecological economics into the decision making process.

N,

Yes. You capture the mood of the country and of policy makers in your skeptical reader. Still, your environmentally-included audience will appreciate this sort of primer on ecological economics.

You might conclude by teaching them about these two places to stay current on ecological economics:
http://steadystate.org/discover/definition/

http://www.uvm.edu/giee/
(see their response here to the DT 100 day plan)