Article
FURTHER toward a neoclassical theory of sustainable consumption 3-14-18 (rev1).docx
Manuscript
(2018)
Abstract
While not known as a factual matter, it is easy to speculate that somewhere in the universe, and quite likely in our own galaxy, there exists a planetary civilization that has achieved indefinite sustainability.
By giving ourselves intellectual leave to contemplate this picture, we can more cleanly consider key questions: How does its planetary eco-economy function, and how do its human economy and natural economy components work together? Can this eco-economy function if its human component is a free-market, private ownership economy, or is that impossible?
A neoclassical framework that formally and rigorously encompasses both the human economy and the natural economy provides some answers.
First, economic growth is not a necessary condition for functioning of a free-market, private ownership economy. Further, it can in principle deliver a sustainable eco-economy that displays the following: indefinite sustainability of the planet’s natural capital; ongoing household satisfaction from consumption, leisure time, retirement savings, and directly from natural capital itself; persistent income equity between labor and capital; poverty elimination; and long-term intergenerational equity.
Provided, that is – and this is shown to be a crucial proviso – the human economy can honor certain fundamental biophysical limits imposed by its planet’s natural economy.
Keywords
- Sustainable consumption,
- neoclassical theory,
- eco-economy,
- ecological economics,
- natural capital,
- zero growth,
- collapse
Disciplines
Publication Date
2018
Citation Information
Harry D. Saunders. "FURTHER toward a neoclassical theory of sustainable consumption 3-14-18 (rev1).docx" Manuscript (2018) Available at: http://works.bepress.com/harry_saunders/42/