Professional Documents
Culture Documents
Biehl’s essay falls within the Institute for Social Ecology’s campaign
against the anti-modernist, spiritualist wing of the green movement.
She recounts with relish the religious ideas of Henning Eichberg, the
founder of one neo-Nazi sect, the ‘National Revolutionaries’. Eichberg
advocates ‘a new religion that mixes together neopagan Germanic,
Celtic and Indian religions with old volkish-nationalistic ideas. It is to
be based on “the sensuality-physicality of dance and ritual, ceremony
and taboo, meditation, prayer, and ecstasy”’ (1994: 136). But a posi-
tion such as Biehl’s ignores the specific and uniquely Germanic condi-
tions that have made a destructive conjunction of nature mysticism and
192 • GREEN POLITICAL THOUGHT
Not all ecologically based ethicists are comfortable with ethical exten-
sionism, and Rodman himself became a prominent early critic. What
E N V I R O N M E N TA L L I B E R A L I S M S • 195
set aside a component of profit in this way has been termed ‘the logic
of capital accumulation’, or ‘the accumulation imperative’ (J.
O’Connor 1987). This accumulated capital is eventually reinvested in
new productive enterprises: that is to say, for enterprise growth. It fol-
lows that the motor driving the capitalist market is economic growth; that
growth is not a mere consequence of market activity, but is instead a
primary factor, a market essence. This insight recurs constantly within
environmental thought. For example, from perspectives within ecolog-
ical anarchism, Takis Fotopolous notes that ‘the growth objective and
the implied principles of economic organisation (efficiency, competi-
tiveness) derive from the logic and dynamics of the system itself’
(1994: 14), whilst Murray Bookchin decribes the ‘competitive
marketplace spirit’ as ‘“grow or die” — a maxim that identifies limit-
less growth with “progress” and the “mastery of Nature” with “civi-
lization”’ (1986b: 49). And John Dryzek, observing that ‘ecological
crisis’ is now ‘the most likely agent’ for upheaval on the scale necessary
to threaten the very existence of capitalism, says of the role of growth
within capitalism: ‘capitalism is a “grow or die” system. Capitalist
economies that do not grow automatically experience rising unem-
ployment, reduced investment — and therefore economic contraction
and all its associated political pathologies’ (1996a: 147; see also 1992:
19–20; McLaughlin 1993: 41).
Less dramatically, it can be argued that without growth there can
be no logic of capital accumulation. This is because there is then no
expansion of demand categories or increase in the level of demand
within existing demand categories and, thus, nothing to require future
investment. The motive that impels the system is missing.
Those who defend the paradigm based upon these assumptions —
overwhelmingly the majority of people in the western world — argue
its virtues in the following terms.
First, it is held to maximise human freedom. Freedom is primarily
an economic category. All other freedoms are dependent upon market
freedom, which provides people with a capacity to pursue material con-
ditions conducive to the sort of life they wish to lead unencumbered
by restrictions imposed by external parties presuming to decide what is
good for them. Only the sovereign individual is entitled, the argument
runs, to pronounce upon what is good for himself or herself.
Second, market transactions are just transactions. The market deliv-
ers justice by rewarding ability and effort, in the form of greater access
to market goods, precisely and unerringly.
And third, the market distributes resources rationally. It does so
because it is the sum of the multitude of rationally constructed indi-
vidual decisions. It is also the best mechanism for determining the use
of scarce resources, because these will receive a market value that
appropriately reflects that scarcity. As this will deter profligacy, the mar-
ket is the best conserver of the rare and the scarce.
E N V I R O N M E N TA L L I B E R A L I S M S • 203
Over the years the logic of classical market economics has been sub-
jected to sustained attack, yet it is probably in a more dominant posi-
tion now than at any other time in its history, mainly owing to the
eclipse of the socialist intellectual tradition in the 1980s. The major
opposition to the logic of classical (and neo-classical) economics now
comes, not from the declining socialist tradition, but from the bur-
geoning field of environmental thought.
Some there are on the edge of the environment movement who
accept the premises of classical economics and try to work within them.
Thus, one management tool that is often advocated as an appropriate
mechanism for preserving environmental goods — cost-benefit analy-
sis (for example, Kneese 1980; Markandya et al. 1990; Pearce 1983;
Pearce et al. 1989; Pearce et al. 1990) — is a tool based in the logic of
‘rational economic man’. It assumes that a money value can be assigned
to a wild area by (say) weighing the money-measured ecological impor-
tance of preservation against the greater, but short-term economic
gains accruing from intrusive activities (such as mining).
But most ecological analysis rejects the premises and the logic of clas-
sical economics. First, the ‘rational economic man’ model is rejected as
an ideological construct that does not accord with real consumer behav-
iour. Irrationality, rather than rationality, it is held, is every bit as charac-
teristic of consumer choice. Advertising gives the game away. Were
economic rationality governing consumer choice, advertising would be
much more focused upon the dissemination of factual data. Instead, it
concentrates upon image, upon spurious constructions of ‘style’, and on
subliminal rather than rational appeal. And it does so because advertisers
know that these are the factors that really govern consumer choice.
Second, the laws of supply and demand have irretrievably broken
down. Consumer sovereignty, it is held, is a myth. Again, by recourse
to the manipulative power of advertising, producers may now decide to
produce what is most technologically and economically convenient and
rely upon advertising to create the necessary demand.
And third, there is resistance to the notion of environmental
‘goods’ being ‘reduced’ to cyphers of the market. Some things, the
argument goes, are beyond value (Ehrenfeld 1988). To determine the
fate of a species in accordance with a notionally assigned money value
besmirches the meaning and status of life itself; it is less a process of
assigning value than it is a process of devaluation. It also does not
work. Wild areas are likely to be already doomed if they are not valued
204 • E N V I R O N M E N TA L L I B E R A L I S M S
highly until they become scarce, because too many ecological thresh-
olds will have been passed before the market assigns a high value. The
market cannot adequately value ecological goods, then, because it can-
not recognise ecological imperatives. (One school of thought, ‘envi-
ronmental economics’, argues a contrary logic: that it is precisely the
absence of a tangible valuation that leads to ecological degradation.) A
variation on this argument holds that the market cannot respect the
interests of other species, or even of humans as yet unborn, because it
is a register of human preferences in the here and now. Other species
and future generations of humans have no way of registering their
interests in the market, for neither have any buying power, and that is
the prerequisite for involvement in the capitalist market. Thus, only
humans, and only living humans, are represented by market decisions.
The argument that capitalism is impossible without growth, and
that growth occurs through the transformation and consumption of an
ever-increasing amount of ecological stock, seems to lead to the posi-
tion that capitalism as an economic system can never be ecologically
benign. This view predominates within ecoMarxist thought. For John
Bellamy Foster, ‘the absolute general law of environmental degradation
under capitalism’ is ‘the second contradiction of capitalism’; further-
more, this ‘second contradiction ... increasingly constitutes the most
obvious threat not only to capitalism’s existence but to the life of the
planet as a whole’ (1992: 78; see also J. O’Connor 1991b; 1994; M.
O’Connor 1994a: 54). For Jean-Paul Deleage, capitalism’s assumption
that nature’s bounty is endless ignores unavoidable entropic limits to
waste assimilation (1994: 37–45). And for Martin O’Connor, global
ecological crises constitute both a crisis of supply and a crisis of legiti-
mation for capitalism. Though Marx himself ‘contributed to the opti-
mistic view that these problems were resolvable technologically if only
the social relations of production were appropriately reformed’
(1994b: 3), capitalism is in crisis because of its tendency to ‘impair or
destroy its own social and environmental conditions and to retrieve
itself from self-induced crisis through mechanisms and measures that
cumulatively tend to worsen the damage’ (1994a: 54).
Though the gulf in first principles was apparent from the start, early
green analyses assumed economics to be redeemable and were not
uncompromisingly hostile to capitalism. Some of the first develop-
ments in environmental thought focused upon questions of economics
and it is to these we now turn.
three decades, but it, too, has its ‘classical’ school. Though the green
critique of conventional economics has since broadened, its classical
focus fell upon the linked factors of growth and scale.
It has been suggested that growth is fundamental to capitalist mar-
ket economics. Yet, neither the founders of classical economics nor the
founders of the environmentalist critique believed in the essentiality of
growth within capitalism.
In the seminal work of classical economics, The Wealth of Nations
(1776), Adam Smith argued that economic growth would deliver
improvements in the human condition, but that it would eventually
become impossible to sustain (O’Riordan 1981: 39–40). Profit and
incentive would fall away as production tapered off, as it inevitably
must. And for Smith a competitive free-market need not be an unreg-
ulated one, whilst his concept of improvement embraced ‘better social
and psychological conditions as well as monetary wealth’ (O’Riordan
1981: 40). Ricardo also saw endless growth as impossible (O’Riordan
1981: 45), whilst Thomas Malthus (1766–1834), having none of
Smith’s large-heartedness and little sympathy for the plight of the bur-
geoning industrial poor, built his thought around a growth-negating
law: ‘population, when unchecked, increases in a geometric ratio.
Subsistence only increases in an arithmetic ratio’ (1969: 7). The impos-
sibility of food supply keeping pace with population growth thus pre-
cluded an endlessly expanding economy.
Whilst there are echoes of Malthus in the doomsday environmen-
talism of the 1970s, the environment movement’s ‘classical’ economic
critique is less influenced by Malthus, though here, too, the possibility
of endless growth is rejected. An outline of ‘classical’ green economics
follows.
‘natural capital ... that yields the flow of natural resources’ (1994: 154)
— is being treated as interest on capital when it should be seen as the
capital itself. It is capital, not interest, that is being frittered away. This
insight is central to the environment movement’s economic critique: ‘it
is an obvious fact’, write Ekins et al., ‘that this “capital” is the precon-
dition not only of production but of life itself’ (1992: 50). A steady-
state economy, by contrast, ‘respects impossibilities, and does not
foolishly squander resources in a vain attempt to overcome them’ (Daly
1977: 6).
From the first law of thermodynamics ‘we know that matter-ener-
gy can neither be created nor destroyed’. For humans the contextual-
ising environment is, thus, ‘a source for its inputs of matter-energy and
a sink for its outputs. Everything has to come from somewhere and go
somewhere. “Somewhere” is the natural environment’ (Daly 1977: 15;
see also 1996: 65). Though economic actions proceed on the assump-
tion of infinite resources and boundless waste-assimilating capacities,
natural systems are actually closed loops. There is, moreover, a net
global gain of entropy (‘the energy unavailable for work’) in all human
transaction. Thus, the universe has a fixed store of energy (the first law
of thermodynamics), but the component available for useful work is
decreasing (the second law)’ (Merchant 1992: 38). Whilst we rely
upon finite fossil fuels for energy (on this, see Daly 1977: 129–46),
production today is reducing the capacity for production tomorrow.
‘While the rest of the biosphere lives off solar income’, writes
Merchant, ‘human beings, since the transition to an inorganic econo-
my, have been living off non-renewable geological capital. This means
that humans are no longer in equilibrium with the rest of nature, but
are depleting and polluting it, overloading the natural cycles’ (1992:
37).
In the steady state this would not be permitted. Throughput must
be contained within the coping capacity of the host ecosystem. The
economy is best seen, Daly argues, as a throughput that begins with
‘depletion of nature’s sources of useful low entropy and ends with the
pollution of nature’s sinks with high-entropy wastes’ (1977: 16). To
keep the capital intact it is necessary that throughput be regulated and
minimised.
This does not mean stasis. Knowledge, culture, the distribution of
income and the allocation of resources may undergo qualitative
improvement (Daly 1977: 16–17). But the ideal steady-state economy
is one in which the stock of artefacts and people remains relatively con-
stant. Artefacts — Daly also refers to ‘physical capital’ — ‘wear out and
must be replaced’, whilst people (human capital) inevitably die. This
outflow ‘is offset by an inflow of births and production’ and this, Daly
says, must be kept constant rather than be allowed to decline or grow
(1977: 15). In his later writings he distinguishes between ‘economic
growth’ and ‘economic development’, the latter being ‘development
208 • E N V I R O N M E N TA L L I B E R A L I S M S
ing things would transcend the narrow, market view and that most
dreadful reduction of human beings to a commodity called “labour”
could be replaced by the concept of “Good Work”’ (1988: 177). In his
essay, ‘Buddhist Economics’, Schumacher draws on the Buddhist
notion of ‘Right Livelihood’, wherein economic life would re-focus
upon the needs and growth capacities of people involved in fulfilling
work:
the Buddhist point of view takes the function of work to be at least three-
fold: to give man a chance to utilise and develop his faculties; to enable
him to overcome his egocentredness by joining with other people in a
common task; and to bring forth the goods and services needed for a
becoming existence ... To organise work in such a manner that it
becomes meaningless, boring, stultifying, or nerve-racking for the work-
er ... would indicate a greater concern with goods than with people, an
evil lack of compassion and soul-destroying degree of attachment to the
most primitive side of this worldly existence (1974: 45).
has come to mean whatever suits the particular advocacy of the individ-
ual concerned’ (1989: 1). Michael Jacobs notes ‘concern among some
environmentalists that the lack of clarity of the definitions allows any-
thing to be claimed as “sustainable” or as “promoting sustainable devel-
opment”’ (1999: 24). Jacobs well describes the range of misgivings:
for many years Greens have struggled to show how industrial expansion
causes environmental damage ... Now, just when the extent of damage
threatens to give them a conclusive case, the term sustainable develop-
ment appears like a magic wand to wave away such conflicts in a single
unifying goal. We can have our cake and eat it, it seems to say (1991: 59).
At its extreme, faith in the market can take the form of a defence of
capitalism as ‘ecological’ or ‘ordained by nature’, a view that removes
it from the realm of artefact and renders it organic (for example,
Rothchild 1992; critiqued by Birkeland 1992; for a discussion of the
social Darwinist position that the individualism, greed and competition
of capitalism replicates nature and hence is ‘natural’, see Hodgson
1993: 29–31). But mine is a book about the thought of the environ-
ment movement, and such contestations as Smith’s and Rothchild’s do
not emanate from the environment movement. I will pass on, though
the reader may wish to refer to the free-market environmentalism of
Anderson and Leal (1991) and Moran et al. (1991); and, though few
accord it sufficient credibility to warrant serious analysis, there are
some reasoned green ripostes to free-market environmentalism (for
example, Eckersley 1993a; 1993b; Rosewarne 1993). Eckersley’s
sketch of free-market environmentalism is succinct and quotable:
‘The task that environmental economics has set for itself’, writes
Hamilton, ‘is to develop analytical and practical means of internalising
environmental costs that fall outside the orbit of markets’ (1997:
46–47). The user should pay, then, and one way this might be done is
via the creation of ‘real’ markets for environmental services ‘so that pri-
vate decision makers determine prices through supply and demand’
(Hamilton 1997: 42). This is an emphasis within environmental eco-
nomics that points away from environmentalist imperatives and back
towards the vision of the market as prior and supreme. Consider a wet-
land that is breeding territory for many species of endangered water-
fowl but is coveted by a transnational oil company. The problem is
simply resolved. All the Outer Swampville Birdwatchers’ Group needs
to do is outbid Planetary Oil Corp in the market-place and the birds
will be saved. What could be fairer?
Yet, this is ultimately a minor emphasis within environmental eco-
nomics. Its main project is to assign a ‘true’ value to environmental
goods and services in the interests of sustainability. The person who has
contributed most to this project is undoubtedly David Pearce, particu-
larly via his co-authored Blueprint for a Green Economy (1989). We
have seen that Pearce’s personal adherence to environmentalist goals is
beyond dispute. He concedes, for example, the significance of the eth-
ical dimension to questions of resource utilisation (Pearce et al. 1990:
3), and in this he has rather more in common with the advocates of
ecological economics (considered below). Environmental economics
nevertheless remains somewhat marginalised both within environmen-
tal thought and academic economics, notwithstanding the inroads it
has made within real-world public policy.
Pearce’s key claim is that economic modelling has become such an
advanced procedure that it has placed an array of evaluation techniques
at the disposal of economists, such that the full costs of ‘free’ environ-
mental services and of environmental ‘externalities’ can be accurately
accounted for. The need for such accounting is crucially important: ‘if
development is to be sustainable it must encompass a full appreciation
of the value of the natural and built environment in terms of the direct
and indirect contributions that environments make to people’s wellbe-
ing’ (Pearce et al. 1989: 33). Such valuation is achieved primarily via a
process known as contingent valuation: assigning a notional monetary
value to goods not directly recognised by the market. This involves
extending consumer preference valuation through the allocation of a
‘willingness to pay’ value to goods with no directly assessable market
value (on the calculation of ‘willingness to pay’, see Pearce 1983: 9–10;
1993: 64–68; Turner et al. 1993: 94–96), and of ‘shadow prices’ to
goods whose true value has not been allocated owing to market dis-
tortions. These can then be factored with or against those preferences
which do have directly allocated, undistorted market value in a much-
enhanced application of cost-benefit analysis (hereafter CBA; on the
E N V I R O N M E N TA L L I B E R A L I S M S • 223
It can also count the ‘fuzzy’ values of non-use, what Pearce et al. refer
to as ‘existence’ values (1989: 61–63; 75–80), defined as ‘concern for,
sympathy with and respect for the rights or welfare of non-human
beings ... a value unrelated to use’ (1989: 61). And it can even take
cognisance of such important — though apparently intangible — eco-
logical values as irreversibility (see Pearce’s discussion of irreversibility
in his case study of the Gordon-below Franklin Dam in what is now
Tasmania’s World Heritage Area wetland wilderness; 1983: 98–102).
Though there is considerable debate over the validity of non-market
preference allocations, this line of criticism leaves Pearce unfazed:
224 • E N V I R O N M E N TA L L I B E R A L I S M S
‘whether there is an actual market in the asset or not is not of great rel-
evance. We can still find out what people would pay if only there were
a market’ (Pearce et al. 1990: 8).
CBA also enables a modelling of the preferences of people yet to
come, though there is much debate over appropriate rates of ‘discount’.
Discounting is explained thus: ‘future benefits and costs are discounted
— i.e. given a lower weight relative to a similar benefit or cost in the
present’ (Pearce et al. 1990: 3). By this mechanism ‘we can compare the
value of economic resources and services at different points in time’
(1990: 24). But why discount at all? Because people, being impatient,
exhibit a ‘time preference’ for an identical good here and now rather
than postponing gratification to the future (and individual preferences,
in the neo-classical paradigm, are sovereign). And because investment
now yields enhanced value upon a resource in the future — what econ-
omists call the ‘marginal productivity of capital’ (Pearce 1983: 37–40;
Pearce et al. 1989: 132–34; Pearce et al. 1990: 24–25; Turner et al.
1993: 99). Pearce et al. cautiously observe that in the past discount rates
may have been set too high: that is, the interests of the future have been
accorded insufficient weight (1990: 35). But high discount rates bring
mixed environmental results. Higher rates protect natural areas because
they make investment in such profits-for-the-future ventures as large
dams in wilderness areas less attractive. On the other hand, high dis-
count rates encourage more rapid development of non-renewable
resources despite the consequences of scarcity and depletion (1989:
135). In the 1989 Blueprint Pearce et al. noted the environmentalist
attack on discounting; after consideration (1989: 136–47; see also
Turner et al. 1993: 102–06), and the part-concession of some points,
they concluded that, rather than adjust discount rates, ‘it is better to
define the rights of future generations and use these to circumscribe the
over-all cost-benefit rule, leaving the choice of discount rate to fairly
conventional current-generation oriented considerations’ (1989: 150).
The cost-benefit calculation should, thus, take place within an ethically
bounded context, as established by the criteria for sustainability.
But environmental economics is not simply about valuation and
CBA is not the only device its practitioners advocate. ‘Environmental
economics’ also signifies an orientation to environmental policy. We
have noted that environmental economics works within a revised neo-
classical paradigm, but begins from the premise that markets fail. The
answer to market failure is not to turn away from the market. It is
rather to ‘modify market signals’ by ‘centrally deciding the value of
environmental services and ensuring that those values are incorporated
into the prices of goods and services’ (Turner et al. 1993: 144). Turner
and his co-authors refer to this type of regulatory regime as a ‘market-
based incentives approach’. They favourably contrast it with the more
common ‘direct (“command-and-control”) regulatory approach’ and
predict that their preferred approach will be increasingly favoured by
E N V I R O N M E N TA L L I B E R A L I S M S • 225
It will be clear how the valuation and market incentives aspects of envi-
ronmental economics fit together. It will also be clear that what is pro-
posed is still a regulated system. But the regulation takes the form of
establishing a framework within which enterprises work, providing
strategic flexibility within that framework, and placing more emphasis
upon incentives than sanctions. And, though environmental econom-
ics writings are not necessarily at one on this point, it may be that tra-
ditional ‘command and control’ mechanisms will not be entirely
supplanted. Pearce and his collaborators are at pains to point out that
‘the instruments for securing development include the traditional
“standard setting” regulatory approach and a panoply of measures
which make use of the marketplace’ (1991: 2).
Turner et al. provide a useful survey of incentive mechanisms
favoured by environmental economists. These include charges on pol-
lutant emissions and for recovery of treatment, disposal and adminis-
tration costs; charges on products ‘that are harmful to the
environment’; marketable permits; ‘deposit-refund systems’; and ‘per-
formance or assurance bonds’ that are forfeitable if practice fails to
meet agreed criteria for environmental performance (1993: 160–63).
‘Marketable permits’ are described thus: ‘these are environmental quo-
tas, allowances or ceilings on pollution levels. Initial allocation of the
permits is related to some ambient environmental target, but thereafter
permits may be traded subject to a set of prescribed rules’ (1993: 161).
Turner and his team are attracted to this mechanism’s potential. There
is no loss of environmental quality because the number of permits is set
by the relevant authority to ensure that end, but the polluter is accord-
ed flexibility in meeting the standard and compliance is achieved less
expensively because no cumbersome bureaucratic infrastructure is
required (1993: 188; see also Pearce et al. 1989: 165–66; Stavins
1989: 59–60; Zarsky 1990–91: 25).
Turner’s team also compares pollution taxes with regulation non-
226 • E N V I R O N M E N TA L L I B E R A L I S M S
ECOLOGIC AL MODERNISATION
‘Ecological modernisation’ has, since its introduction in the 1980s
writings of the Germans Joseph Huber and Martin Janicke, presented
a formidable challenge to environment movement calls for structural
social and economic change. Martin Hajer defines it as: ‘the discourse
that recognizes the structural character of the environmental prob-
lematique but nonetheless assumes that existing political, economic,
and social institutions can internalize care for the environment’ (1995:
25). It contrasts with ecosocialist views of natural limits as one of the
rocks upon which capitalism is destined to founder. Indeed, in one of
the most influential writings on ecological modernisation, Albert Weale
explicitly considers and finds unsatisfactory the ecoMarxist view that
environmental demands threaten the state’s symbiotic relationship
with capital, precipitating a legitimation crisis (1992: 47–51; 89). In
Weale’s view the state’s capacity to lead opinion can avert a legitima-
tion crisis. Insofar as such a crisis stems from conflict between envi-
ronmental imperatives and spiralling private desires, the state can help
restructure definitions of the good life by ‘ecologising the economy’ so
that people come to see an increase in environmental amenity at the
expense of private consumption as nevertheless an increase in overall
standard of living.
The concept was formulated in response to observed developments
in Germany and The Netherlands. Weale (1992), Hajer (1995) and
Dryzek (1997) note the replacement there, in the early 1980s, of ‘the
central dichotomy of 1970s environmental policy’ — the assumption
of a zero-sum relationship between environmental protection and cor-
porate sector costs (Boland 1994: 135–36) — with a regime in which
‘industry itself cooperates enthusiastically in the design and implemen-
tation of policy’ (Dryzek 1997: 142). Government and industry, then,
seek co-operative solutions to environmental problems, on the under-
standing that ‘high environmental standards create new markets in
environmental technologies’, and ‘these in turn offer significant poten-
tial for new specialist industries and sectors, with the possibility of sub-
E N V I R O N M E N TA L L I B E R A L I S M S • 229
This view is most fully developed by Weale. We have seen that he con-
structs ecological modernisation in opposition to ecosocialism; but he
is even more concerned to differentiate it from the anti-statist individ-
ualism of neo-liberalism. Focusing particularly on public/rational
choice theory (1992: 214–18), he argues that ‘ecological modernisa-
tion is mercantilism with a green twist; libertarian conservatism is its
antithesis’ (1992: 88). Weale does think that market-based mechanisms
(such as tradeable emission permits) can ‘supplement the traditional
forms of administrative regulation’ (1992: 167), but the thrust of his
argument is that the former cannot replace the latter (1992: 164–67;
see also Boland 1994: 139. Mol, by contrast, sees a reduced role for
the state; 1996: 314). In the corporatist marriage of state and capital
envisaged within ecological modernisation, then, Weale places more
faith in the adaptive state than in the instruments of the market.
PREC AUTION
Ecological modernisation institutionalises the precautionary principle.
This has significance when it comes to positioning ecological moderni-
sation within the complexity of environment–economy thought,
E N V I R O N M E N TA L L I B E R A L I S M S • 231
ECOLOGIC AL ECONOMICS/ALTERNATIVE
ECONOMICS
We come to the form of economic thought with which the environ-
ment movement, in its mainstream, is most comfortable. This is the
tradition that has built upon the pioneering work of Daly and
Schumacher (Daly, indeed, remains a key contributor to it). There are
quite distinct academic and semi-popular or ‘practitioner’ versions of
this thought. I have termed them (by no means originally) ecological
economics and alternative economics.
11–13), local, regional and global scale modelling (1991: 13–14), and
‘innovative instruments for environmental management’ (1991:
14–15). Policy recommendations include ‘fees, taxes and subsidies ...
to change the prices of activities that interfere with sustainability’
(1991: 17). Whilst market incentives may be used ‘where appropriate
in allocation decisions’, when it comes to questions of scale, ‘individ-
ual freedom of choice must yield to collective decision making by the
relevant community’ (1991: 17). The bottom line is ‘the maintenance
of the total natural capital stock at, or above the current level’, because,
‘given our uncertainty and the dire consequences of guessing wrong, it
is best to at least provisionally assume that we are at or below the range
of sustainable stock levels and allow no further decline in natural capi-
tal’ (1991: 16). Thus, mainstream and ecological economics differ
strikingly over consumption. Whereas conventional economics seeks to
guarantee ever-rising consumption, ecological economics demonstrates
its unsustainable consequences for natural capital.
Though ecological economics extends ideas already present in
Daly’s early work, there are interesting variations on the familiar
themes. For example, Martinez-Alier and Schlupmann (1987) develop
a Marxist ecological economics, whilst Richard Norgaard writes of
‘coevolutionary’ ecological economics. Martinez-Alier’s ecological
economics, like Daly’s, owes much to Georgescu-Rogen, and his
themes do not depart substantially from those of other ecological
economists, though he focuses more upon third world ‘development’,
and he places greater emphasis on distributional and equity questions.
Norgaard conjoins economic and ecological paradigms in a per-
spective that is not dialectical in the sense of a new fusion displacing its
constituent paradigms, but which draws simultaneously upon incon-
gruous models in a ‘co-evolutionary’ dynamism. Norgaard is critical of
the implicit faith economists and decision-makers hold in the assump-
tions of mechanistic science and modernist rationalism. The modern
scientific outlook sees the world as an agglomeration of atomised parts
which are integrated mechanistically and hence amenable to formal
modelling, and which disclose knowledge that is universal and usable
(1992: 77). Similarly, neo-classical economics views the economic sys-
tem as atomistic (‘land, labour and capital ... are like individual atoms.
They are combined but not changed during the production of goods
and services’; 1992: 78) and mechanistic (‘economic systems can oper-
ate in equilibrium at any position along a continuum and move back
and forth between positions. If more labour becomes available, the sys-
tem adjusts so that more labour intensive goods are produced’; 1992:
78). Thus, ‘the dominant vision of social organization stems from the
Newtonian model of systems consisting of mechanistically related
atomistic parts’ (1987: 107; see also 1994: 3–7; 61–74; 204–09).
Against the mechanism of neo-classical economics, Norgaard’s ‘co-
evolutionary perspective’ draws upon the following insight:
236 • E N V I R O N M E N TA L L I B E R A L I S M S
during the last few decades biologists have put even more emphasis on
how ecological relations between species affect evolution, how species
co-evolve. The shift from thinking of each species evolving in response to
a changing physical environment to thinking of species co-evolving
together has led to a new understanding of evolutionary dynamics (1987:
114).