OCR Output

49

dimension, component,
aspect

Neoclassical
environmental economics
(NEO)

Ecological economics
(ECO)

PARADIGM

extended neoclassical

biophysical

main theory /
principle

market mechanism,
technological

change and substitution;
economic theory of the
mainstream

ecological balance. natural
laws; entropic nature of
economic activity;
Physiocratic and classical
theory, Mill’s steady-state
economy resuscitated by Daly

stress on thermodynamic
law

on the first law

on the first and (mainly) the
second

scale; distribution and

iii h allocation .
1 [ approac allocation
iv | worldview mechanic-reductionist evolutionary-holistic
knowledge-acquisition positivist and value-free subjectivist, concentrating on
V . .
process analysis values and ideology
ec . multidisciplinary; operation
monodisciplinary extension of .
. | - on the interface between
vi | character neoclassical economics to an |. . .
. biophysics, economics and
environmental system . :
other social sciences
ecosystem-economy;
. humans in symbiosis
economy-environment; .
. with nature
interdependence of humans .
.. . . capital and resources:
vii | relationships and nature;
. fundamentally
capital and resources: .
. complementary with very
near-perfect substitutes o.
limited
marginal substitutability
SCARCITY .
2 relative absolute
PERCEPTION
i | perspective economy contains biosphere | biosphere contains economy
ii | perception of decline not universally true universally true
maintenance of throughput
iii | economic growth clean-green growth as per
carrying capacity
iv | sustainability constraint on economic growth | security
v | desired equilibrium Pareto efficiency Boulding-optimum
. | view of future . . .
vi technological optimism prudent pessimism
PROBLEM-SOLVING
3 based on the market system | based on laws of nature
ORIENTATION y
i | pollution externality (market failure) resource depletion (social trap)
ii | therapy polluter/victim pays pollution prevention pays