Graphical Presentation of the Steady-state Economy Model

Theodore Lianos

doi:10.3197/jps.63772239432389

Abstract

There are several theories claiming that their policies can save the planet from environmental catastrophe. This paper claims that it is only the Steady-State Economy model on which such reasonably effective expectations can be based. This is so for two reasons. First, the SSE is based on a clearly defined economic model which is presented graphically and briefly analysed. Second, it includes a policy proposal for reducing the size of global population. This is now approaching eight billion people and is expected to exceed nine billion in the next thirty years. The logic of the SSE suggests that stabilising population is not sufficient. The global population should actually be reduced if environmental balance is to be restored.

Highlights

Over the last fifty years, the increasing intensity of environmental problems faced by the global community has led to the development of several important ideas and proposals regarding systemic changes to reverse existing environmental tendencies
The purpose of this paper is to discuss briefly the steady-state economy and to give a graphical exposition in order to make clear that, unlike the other theories mentioned above, it is based on a well-defined basic macroeconomic model
I draw the conclusion that, assuming no important wars and no important increase in population, the economic problem may be solved, or be at least within sight of solution, within a 100 years. This means that the economic problem is not – if we look into the future – the permanent problem of the human race (4)

Summary

Introduction

Over the last fifty years, the increasing intensity of environmental problems faced by the global community has led to the development of several important ideas and proposals regarding systemic changes to reverse existing environmental tendencies. 1972, 1996), the Green Growth Economy or Green Economy (OECD, 2011, 2015; UN, 2012), the ideas of Degrowth (Kallis, 2011; Kallis, Kerschner and MartinezAlier, 2012; Hickel and Kallis, 2020), Ecosocialism (Kovel and Löwy, 1991; Angus et al, 2009; Löwy, 2018), and Ecomodernism (Asafu-Adjaye et al, 2015). These ideas and proposals are sometimes referred to as theories. These theories share the same objectives – i.e. ecological equilibrium and distributional justice – their analyses and policy suggestions differ widely

Objectives

Discussion

Conclusion