Herman Daly explains how we can use prices now as tools for rationing a fixed predetermined flow of resources, rather than determining the volume of resources taken from nature, or the physical scale of the economic subsystem.
Author Archive for: Herman Daly
About Herman Daly
Herman Daly is a U.S. economist who began researching the fusion of economics and ecology in the 1970s, highlighting the necessity to consider the laws of nature when structuring an economic system. His work supports the idea that for the human economy to subsist, it must function at a steady state within the productive and assimilative capacity of the earth’s ecosystem.
He is a professor at the University of Maryland, School of Public Affairs. From 1988 to 1994 he was senior economist in the environment department of the World Bank. Prior to 1988 he was the Alumni Professor of Economics at Louisiana State University, where he taught for twenty years. He is a co-founder and associate editor of the journal, Ecological Economics.
He is co-author with theologian John B. Cobb, Jr. of For the Common Good (1989; 1994) which received the Grawemeyer Award for ideas for improving World Order. His other books include Steady-State Economics (Freeman, 1977; second edition, Island Press, 1991); Valuing the Earth (MIT, 1993) and Beyond Growth (Beacon, 1996). In 1996, he received the Heineken Prize for Environmental Science awarded by the Royal Netherlands Academy of Arts and Sciences, and the Right Livelihood Award, Sweden's alternative to the Nobel Prize. In 1999 he was awarded the Sophie Prize (Norway) for contributions in the area of Environment and Development; in 2001 the Leontief Prize for contributions to economic thought, and in 2002 the Medal of the Presidency of the Italian Republic for his work in steady state economics.
Entries by Herman Daly
Our current economic policy goal is not fit for a finite and entropic world. But what would our economic policy goal be in a steady state economy?
Our economy faces a futility limit, ecological catastrophe limit, and an economic limit. Fortunately, the economic limit will likely be the first we encounter; hopefully we can implement a steady state economy before the others are reached!
Daly challenges the assertion that a steady-state economy is inherently capitalistic and must be instead be based on a socialist system.
What is the best strategy for incorporating limits to growth into economics?
Does Paul Krugman believe GDP growth is making us richer or poorer?
How is the depletion of morality effecting the environment and economic growth?
What can leprosy and its treatment teach us about ourselves and how to manage our environmental crises?
The next nonsensical strategy for maintaining the dream of endless GDP expansion? Negative interest rates!
Herman Daly analyzes the philosophies of Frederick Soddy, a well known pioneer of chemistry, but also an insightful pioneer of economics.