Ecological Economics: Principles and Applications

by Herman E. Daly, Joshua Farley

In its first edition, this book helped to define the emerging field of ecological economics. This new edition surveys the field today. It incorporates all of the latest research findings and grounds economic inquiry in a more robust understanding of human needs and behavior. Humans and ecological systems, it argues, are inextricably bound together in complex and long-misunderstood ways.
 
According to ecological economists, conventional economics does not reflect adequately the value of essential factors like clean air and water, species diversity, and social and generational equity. By excluding biophysical and social systems from their analyses, many conventional economists have overlooked problems of the increasing scale of human impacts and the inequitable distribution of resources.
 
This introductory-level textbook is designed specifically to address this significant flaw in economic thought. The book describes a relatively new “transdiscipline” that incorporates insights from the biological, physical, and social sciences. It provides students with a foundation in traditional neoclassical economic thought, but places that foundation within an interdisciplinary framework that embraces the linkages among economic growth, environmental degradation, and social inequity. In doing so, it presents a revolutionary way of viewing the world.
 
The second edition of Ecological Economics provides a clear, readable, and easy-to-understand overview of a field of study that continues to grow in importance. It remains the only stand-alone textbook that offers a complete explanation of theory and practice in the discipline.

Genres: Economics, Environment, Ecology, Sustainability, Nonfiction, Politics, Philosophy

544 pages, Hardcover

Published October 18, 2010

About the author

Dr. Herman Edward Daly is an American ecological economist and professor at the School of Public Policy of University of Maryland, College Park in the United States. He was Senior Economist in the Environment Department of the World Bank, where he helped to develop policy guidelines related to sustainable development. While there, he was engaged in environmental operations work in Latin America. He is closely associated with theories of a Steady state economy.

Before joining the World Bank, Daly was Alumni Professor of Economics at Louisiana State University. He was a co-founder and associate editor of the journal, Ecological Economics.

He is also a recipient of an Honorary Right Livelihood Award, the Heineken Prize for Environmental Science from the Royal Netherlands Academy of Arts and Sciences, the Sophie Prize (Norway), the Leontief Prize from the Global Development and Environment Institute and was chosen as Man of the Year 2008 by Adbusters magazine.

He is widely credited with having originated the idea of uneconomic growth, though some credit this to Marilyn Waring who developed it more completely in her study of the UN System of National Accounts.

Reviews

[stinaz · Rating 3 out of 5]

A good 101 for ecological economics. Has some great theories, and some good analysis of how neoclassical economics works and how to adapt it to consider markets within a finite world and its ecosystems.

The pros: I really liked how Daly took you through the classical approach and adapted it to fit within ecological constraints. The premises were explained well however I had read better and more in depth information in many other places about sustainability theory - which did not necessarily detract from the book. It was also great to see some broad policy options to solve the issues with classical economic theory on sustainability.

The cons: I found the basic economic theory tough to get through and comprehend (and I studied Economics at university!). Also, the solutions to adapt current economic policy to create a sustainable ecological economics were only given in brief. However, as it was a 101 this again was not a big deal. I would expect to explore these policies and issues further in another text or course.

Overall a good starting point to explain exactly what ecological economics is and how it relates to classical and environmental economics. (Ecological economics addresses the interdependence and coevolution of human economies and natural ecosystems over time and space. It treats the economy as a subsystem of the ecosystem and emphasises preserving natural capital in order to create a sustainable economy and society.)

[Yannick · Rating 5 out of 5]

Really good book. It is accessible for undergraduates as well as the layman but still teaches fundamental modelling and thinking skills. In my view it gives a good appreciation of what (neo-) classical economics has previously achieved without seeing the devil in everything but still succinctly points out the fundamental flaws in previous models.

Good book for teaching and learning yourself.

[Keith Akers · Rating 5 out of 5]

This is an excellent textbook. The hardest part for me was when he talks about traditional economics, which was new to me, but it was clearly explained and did not require a lot of math. There are, however, a LOT of new concepts.

[Rebecca · Rating 3 out of 5]

Required reading for my ecological economics course, good overview of ecological economics.

[Atika · Rating 4 out of 5]

Manages to capture complex and critical topics in simple terms with no maths and minimum graphs. The bits of roasting of neoclassical economics here and there was fun, and like a treat.

[Elizabeth]

from the library




from the library computer:

Choice Reviews

For environmental economists, this book is must reading. For more than 30 years Daly (Univ. of Maryland) has been known as a Cassandra among economists for his writing on the imperative of no-growth economies. Coauthor Farley (Univ. of Vermont) is newer to the scene and brings to bear on ecological economics a diverse and relevant education, with degrees in biology (BA), international affairs (MA), and agriculture (PhD). Two refrains pervade the book. The first is that infinite economic growth is impossible in a finite world. This raises the question of scale: just what are the limits to human economic activity in a finite world? Environmental economics neglects this issue. Ecological economics addresses scale as a central issue, thereby delineating itself from environmental economics. The second refrain is that neoclassical economics fails to properly value and account for the services that the natural world provides. Therefore, humankind is blithely exceeding the sustainability of natural systems. Fundamental principles and controversial policies are clearly presented. Moral questions, such as intergenerational equity, are raised and remain open to debate. This is an important book because of the challenges it presents, not the answers it gives. Summing Up: Highly recommended. Upper-division undergraduate through professional collections. Copyright 2004 American Library Association.

[Jennifer · Rating 4 out of 5]

A VERY, VERY important book. A call to all of the people who lost hope in the field of economics to tackle the problems and move forth in making the free market a better place. Daly manifests many issues that he sees as endemic in neoclassical economics. He distinguishes Ecological Economics from Neoclassical Economics and Environmental Economics and gives us hope that there is an answer within the current system of things if we address certain issues before it is too late. As it serves as a text book there was a lot to be desired. A good micro and macro text would be a great complement to this text, because he often fails to explain basic principles in the ways in which have proven successful in other forms. Many great and important theories are in this book. A must read for anyone interested in ¨saving this world¨.

[Debbie is on Storygraph · Rating 5 out of 5]

I read this for my class Ecological Economics, actually taught by Herman Daly who is considered to be the godfather of the field. This was a fascinating book that criticizes the current neoclassical economic theory and thought for existing in a vacuum. Daly and Farley's basic premise is that economic systems do not exist independently but exist within a finite and limiting ecosystem. There is a need to move away from the idea of perpetual growth (which is not the same thing as development) which does not take into account the ecological damage being done. We live in a full world and the economic principles that currently guide us were based in an empty world. Unfortunately, I can't see this paradigm shift occurring anytime soon.

[Nick · Rating 4 out of 5]

This text was assigned reading for my Economics of Sustainability course. The field of Ecological Economics has three goals: 1) A sustainable level of consumption, 2) Just distribution, and 3) Efficient allocation.
Make no mistake, this is a textbook. I will say that the ideas presented in the text are conveyed with concrete examples very frequently. That understood, I did have to read, and reread some sections.

Considering the current events, political and economic, shouldn't we at least understand the options available? Rejecting several key ideals of neoclassical economics is essential to global sustainability. Unlimited growth cannot exist driven primarily by materialism.

[Leeann]

This was the textbook for my Ecological Economics class. It reads like a textbook, too, in ways that are sometimes painful, but the ideas presented are extremely important. I'd recommend it to anyone with any interest in the field of economics; it will challenge much of what you've learned before and provide a whole different (and, I think, more sane) way of looking at things.

[Kate Lawrence · Rating 3 out of 5]

This was the text for a discussion course I just finished. Definitely academic, but gave a good overview of what an economic system that includes the value of environmental resources would look like. Now when someone tosses around words like "scale," "allocation," and "distribution," I'll have some clue what they're talking about.

[Faye · Rating 3 out of 5]

Textbook explaining ecological economics, studying this topic helped to answer many of the questions I have had for a very long time about humans and the environment. Contemplating our future on Planet Earth ... at least google the topic and learn as much as you can.

[Elinor Hurst · Rating 5 out of 5]

I am giving this book five stars because I learned a huge amount from it, and it has opened my eyes to an exciting new discipline which integrates ecological, ethical and economic understandings together and produces concrete policy recommendations for a sustainable world.

[Kstn · Rating 4 out of 5]

i'm not so great with science, so this is a bit of a stretch, but still an exciting development in economic discourse.

[Deusse]

An excellent book, and a must for anyone interested in sustainable development.

[Libby · Rating 4 out of 5]

A textbook, excellent.