Ecological Macreconomics: Introduction and Review

The Great Recession of the past years has brought macroeconomics back. Many of the recession's phenomena, causes and consequences alike, cannot be understood using solely microeconomic decisionmaking. Over the past decades the economics profession has pursued the implications of rational choices and enshrined them in so-called "micro foundations" as a hallmark of modern economic theory. By focusing on the choices and actions of individual consumers, firms, or the government, however, one can easily miss important determinants of the economic system which only arise at the meso- or the macroeconomic levels where institutions, coordination, and complexity in general are important and sometimes even can take on a life of their own. To lesser extent, ecological economics has fallen prone to similar pitfalls by mostly focusing the unit of investigation on low-level, small-scale subsystems of the economy. There are, of course, notable exceptions including the early contributors Boulding and Georgescu-Roegen and the general interest of ecological economists in the field of (ecological) macroeconomics has been increasing. (authors' abstract)Series: Ecological Economic Paper

Ecological Macroeconomics: Introduction and Review

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Towards an operational measurement of socio-ecological performance

Questioning GDP as dominant indicator for economic performance has become commonplace. For economists economic policy always aims for a broader array of goals (like income, employment, price stability, trade balance) alongside income, with income being the priority objective. The Stiglitz-Sen-Fitoussi Commission argued for extending and adapting key variables of macroeconomic analysis. International organisations such as the EC, OECD, Eurostat and UN have proposed extended arrays of macroeconomic indicators (see 'Beyond GDP', 'Compendium of wellbeing indicators', 'GDP and Beyond', 'Green Economy', 'Green Growth', 'Measuring Progress of Societies'). Despite these high profile efforts, few wellbeing and environmental variables are in use in macroeconomic models. The reasons for the low uptake of socio-ecological indicators in macroeconomic models range from path dependencies in modelling, technical limitations, indicator lists being long and unworkable, choices of indicators appearing ad hoc and poor data availability. In this paper we review key approaches and identify a limited list of candidate variables and - as much as possible - offer data sources.Series: WWWforEurop

Understanding Peri-urban Sustainability: The role of the resilience approach

Resilience is a term that is widely used by scholars from different disciplines who promote action research between science and policy. This paper is largely concerned with how resilience approaches can be used as a practical tool in helping to understand complex dynamic socio-ecological systems in an urbanising world and, in particular, how resilience approaches can contribute to initiatives with normative development agendas to enhance environmental integrity and social justice. Some key debates around differing understandings and uses of the term resilience are summarised, and criticisms discussed. An initial case study demonstrates how the resilience approach can be a useful tool in understanding key interactions between social and ecological systems that impact on the management of protected areas. Further case studies examine how resilience approaches might help in understanding more complex peri-urban situations, characterised by increasing social exclusion and environmental degradation. A final case study from Varanasi India, examines relationships between water management in the peri-urban interface and urban food systems. It utilises a resilience framework to illustrate the lack of recognition by formal institutions of actual peri-urban water use practices and the many informal transactions that occur, and to highlight some implications in relation to urban food security, environmental policies and particular marginalised groups. These examples seek to demonstrate opportunities for the use of resilience approaches as an integral part of initiatives that seek to identify opportunities for enhancing sustainability (in relation to environmental integrity and social justice) in dynamic urbanising situations.ESR

Work-sharing for a sustainable economy

Achieving low unemployment in an environment of weak growth is a major policy challenge; a more egalitarian distribution of hours worked could be the key to solving it. Whether worksharing actually increases employment, however, has been debated controversially. In this article we present stylized facts on the distribution of hours worked and discuss the role of work-sharing for a sustainable economy. Building on recent developments in labor market theory we review the determinants of working long hours and its effect on well-being. Finally, we survey work-sharing reforms in the past. While there seems to be a consensus that worksharing in the Great Depression in the U.S. and in the Great Recession in Europe was successful in reducing employment losses, perceptions of the work-sharing reforms implemented between the 1980s and early 2000s are more ambivalent. However, even the most critical evaluations of these reforms provide no credible evidence of negative employment effects; instead, the overall success of the policy seems to depend on the economic and institutional setting, as well as the specific details of its implementation. (authors' abstract)Series: Ecological Economic Paper

List of well-being indicators

This milestone presents a pool of available indicators and indicator systems which go beyond the narrow concepts of national economic accounts as well as a structuring of the indicators and indices according to central areas of well-being. The milestone builds the basis for Task 202.2, where a subset of indicators will be selected based on different theoretical frameworks, e.g. services / functionings, needs. Some of the indicators will be included in the macro-economic models in order to account for key dimensions of sustainability.Series: WWWforEurop

The future of circular environmental impact indicators for cultural heritage buildings in Europe

Background: The European building and construction sector is extremely resource-intensive. This makes the renovation of existing buildings, including the adaptive reuse of cultural heritage buildings (ARCH), important for reducing the materials and energy intensity of the sector. Currently, Europe is embarking on a Circular Economy (CE) strategy that directly affects the environmental indicators for buildings and landscapes, including ARCH. However, there is a misalignment between macro-level European CE policy goals and micro-level renovation and management of existing buildings and ARCH. The analysis shows that macro European Union-level indicators are too narrowly defined to effectively guide the implementation of CE at the micro-project level for ARCH. Results: This policy study develops a comprehensive ARCH Circular Environmental Impact Indicator Framework to close this gap by: (1) defining the research question; (2) identifying the causal network; and (3) selecting the best indicators. The study compares Circular Environmental Indicators for ARCH projects to current and developing European management schemes. Best practices in environmental impact assessment at the project level are highlighted for the building and construction sector in Europe. Conclusions: The proposed new framework is a comprehensive and suitable list of explicitly circular environmental indicators for ARCH. The framework has immediate practical applications for practitioners and policymakers interested in the CE regime for buildings in Europe