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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
