Chapter 11 Biophysical Limits to Economic Growth: Malthusian perspectives Chapter Summary This chapter was about the intellectual legacies and the social and environmental movements that have been created by the various Malthusian and neo-Malthusian creeds. A common belief that unites the Malthusians of all stripes is the existence of biophysical limits to economic growth. As discussed thoroughly in this chapter, the variations in their worldviews are caused by the difference on what they considered to be the ‘principle’ causes (drivers) for limits to growth: overpopulation, effluence, the over reliance and inappropriate use of technology, energy (i.e. over reliance on fossil fuels), and loss of ecological resilience. According to the Malthusians worldviews, trespassing limits have dire consequences including mass starvation and irreversible ecological damages on a global scale. However, it is argued that this can be averted by implementing far farsighted and enforceable policy actions with primary focuses on population control, the use of appropriate production technologies, closed-loop material cycling, avoidance of toxic pollution, and full transition to the use renewable energy resources. Review and Discussion Questions 1. In your textbook the Malthusian worldviews on ‘limits to growth’ are studied by examining three different scholarly approaches that more or less reflect the progression of the Malthusian thought over time. Name these three approaches. 2. What are the three fundamental postulates that all scholars with a Malthusian perspective on resource scarcity and economic growth share? Be specific. 3. “Thomas Malthus developed a formal model of a dynamic growth process in which each country converged toward a stationary per capita income. According to this model, death rates fall and fertility rises when incomes exceed the equilibrium level, and the opposite occurs when incomes are less than that level. ” (Becker et al. 1990). Make sure you understand the discussion presented in your textbook using Figure 11.1 (p. 235) to capture the essence of the above quoted observation by a Chicago University Professor, Nobel laureate Gary Becker. 4. Explain the following: Growth that is characterized by ‘arithmetic’ versus ‘geometric’ progression ‘Preventive’ versus ‘positive’ checks in reference to population growth The law of diminishing marginal product The Malthusian trip (margin) Ricardian rent Jevons Paradox 5. In what specific way(s) do the following prominent classical economists support and/or reject Malthus’ gloomy prophecy of the future condition of human material progress: David Ricardo (1772—1823) John Stuart Mill (1806—1873) © 2014 Ahmed Hussen William Stanley Jevons (1835—1882) 6. Give an account of how the following four events that occurred in the 1960s and 1970s were responsible in shaping the evolution of the Neo-Malthusian theories on resource scarcity and economic growth: Unprecedented rate of growth of human population Prevalence of toxic waste pollution The beginning of the space age The 1970s energy crisis 7. The 1960s and 1970s are said to have ushered in the second movement of environmentalism in American history. During approximately what span of time did the first movement of environmentalism occur in the history of the United States of America? In what important respects are these two environmental movements similar and/or different. Be specific. 8. Section 11.3 of your textbook (pp. 239–245), presents what is considered to be the generalized theoretical model of the neo-Malthusian school of thought on emerging ‘general’ resource scarcity. If one carefully extracts the main arguments of this theoretical model, it is clear that there are three key variables important in understanding the total damages (impacts) that humans inflict on the environment: population, affluence, and technology. In this respect, the debates among the leading scholars with competing neo-Malthusians views appear to be on the relative importance of these three variables in explaining the total impacts (damages) humans have on the environment. Having read Section 11.3 carefully, who are the leading proponents for the three key variables identified above? In general, did you find these debates to be productive? If you have to take a position in this debate, which one will you support? Explain. 9. In Section 11.3, it was observed that the policy implications of neo-Malthusians are readily apparent from the theoretical model discussed in Question 8 above. (a) In general, it is recognized that the neo-Malthusian policy goals are oriented to achieve three specific ends. What are they? (b) It is also said that neo-Malthusians generally favor the ‘command-andcontrol’ approach to achieving their environmental goals because of their mistrust of marketbased policy instruments? Do you think this is a valid claim? Why or why not? Explain. 10. Provide a brief account of the major contributions of neo-Malthusians’ lead environmental movement of the 1960s and 1970s on the development of US environmental policy. 11. What are the major criticisms of the neo-Malthusian perspective to resource scarcity and economic growth, in general? Be specific. 12. Assuming that you have carefully read Section 11.4 (pp.248–52) and Appendix B (pp. 404–6): (a) In what specific ways are ecological economists’ uphold the Malthusian tradition of general resource scarcity and economic growth? (b) Is it fair to say that ecological economics simply represents a natural progression of its immediate predecessor—the neo-Malthusian school of thought? Explain. (c) In your view, what are the major contributions of ecological economics on the ongoing debate on scarcity and growth? Be specific. 13. This is an alternative to Question 12. The presence of biophysical limits to economics growth from the perspective of ecological economics is understood through the following three salient features: © 2014 Ahmed Hussen The scale effect (i.e. the sheer size of the human economy relative to the natural ecosystems) The complementarity of ‘human-made’ and ‘natural’ capital The special feature given to energy resources Explain how the above three features are used both independently and in combinations to advance the ecological economists’ perspective to biophysical limits to economic growth. 14. Read Exhibit 11.3 (p. 249) carefully. This exhibit is entitled ‘Has Malthus been discredited?’ and makes the point that it is quite difficult to reject Malthus’s prophecy of doom and gloom entirely. What do you make of this? Explain. 15. Identify the major contribution(s) to the limits to growth debates of the following scholars: Kenneth Boulding, Rachel Carson, Berry Commoner, Herman Daly, Alan Thein Durning, Paul Ehrlich, Garret Harden, Donella Meadows and Dennis Meadows, and Georgescu Roegen. © 2014 Ahmed Hussen