Sin ttulo de diapositiva

1
Module (3) Open system versus closed system
economics
System theory Entropy law Economic
paradigms Technological perceptions Environmental
perceptions
2
A bit of system theory applied to material end
energy flows....

• 3 types of systems
• Isolated systems
• Closed systems
• Open systems

3
The economic system in the ecological economic
system
4
Empty world and full world economics
Daly overhead
5
Defining ecological economics from its meaning
Eco - nomics Oikonomia management of the
house
Eco- logy Knowledge of the house
Ecological economics management of the house
where you know your house (limits, behaviour,
coevolution)
Study of price formation for gaining money
Crematistics (Aristoteles)
6
The economic system in the ecological economic
system
Pag 64 wuppertal report
7
Laws of thermodynamics in ecological economics
The first law says that energy and matter
conserve neither you can create them, neither
you can destroy them. So, what does the economic
prcess? i.e wealth creation? The secod law
tells us energy and matter change their state,
from useful to useless, increasing the disorder,
in an irreversible way. This is a natural process
and the economc process accelerates it by
absorbing and expelling energy and matter in its
metabolism. Example from the universe. "The earth
is a thermodynamically closed and
non-materially-growing system, with the economy
as a subsystem of the global ecosystem. This
implies that there are limits to biophysical
throughput through the economic subsystem."
(Getting Down to Earth, p. 2) We can look at the
economic system as part of a closed system that
works according to the entropy law. Example from
natural resources. The point of view of energy
studies how to look at the economic system in
terms of energy. The concept of Emergy embodied
energy (Odum).The point of view of metabolism
8
Laws of thermodynamics in ecological economics
Ecological economics is trans-disciplinary (see
module 4) historically its foundations are in
the work of Georgescu-Roegen, and have a base in
physics, from the second law of
thermodynamics Multidisciplinary divisions
between disciplines are respected (EIA
report) Interdisciplinary individual experts
know also the other discipline (env. econ. of
greenhouse gas emissions)...but maintaining their
first disciplines mental frame Transdisciplinary
generates new concepts and mental structures
9
economic growth paradigms
Open system versus closed system economics
(Daly) Can we achieve infinite economic
growth? The issue quantitative growth
(impossible in a closed system) versus
qualitative growth (possible in a closed
system) Daly steady state economics see
overhead Dematerialization is the
solution.... The theory behind Environmental
Kuznet Curve and dematerialization The facts
while environmental awarness is increasing in
richer countries (See module 7),
dematerialization is not happening. Emergy of new
technologies
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technological perceptions
Is technology the solution to environmental
problems? Technological optimism versus prudent
pessimism (Costanza What is ecological
economics?) The cosmological perception of the
western culture 1 the idea of progress Example
of climate change and iron fertylization of the
oceans (Gli apprendisti stregoni del clima, Le
Monde Diplomatique, July 2002)
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environmental perceptions
Is nature a problem or the solution? The
cosmological perception of the western culture 2
alienation and protection from the natural world
(example from Hollywood films) Other cultures
have a different concept. No split. Nature
home The complexity within natural systems (see
Module 8) Technological improvements, emergy and
the environment physical problems
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Readings
Ecological Economics (electronic journal)
September 1997 special issue on the work of
Georgescu Roegen (especially pag. 261 to
273) Boulding, K. The economics of the coming
spaceship Earth Costanza, R. What is ecological
economics? In Ecological Economics, vol 1 issue
1 Daly, H Ecological economics and the ecology
of economics essays in criticism (Introduction
and chapters 1 and 2) (chapters 10-11-12) Daly,
H The economic growth debate what some
economists have learnt but many have not