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19 - Linking multiple capitals in a changing world

Published online by Cambridge University Press:  21 March 2011

Graham Harris
Affiliation:
University of Tasmania
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Summary

Finding ways to understand and manage the interactions of the many forms of capital that together lead to sustainability.

The linkage of economic and ecological concepts and models requires us to be more realistic. Ecological systems are not linear, equilibrium systems; somehow we must find a way to link economic activity to the dynamics and resilience of natural systems. Deutsch and her collaborators wrote

We envision that the development of indicators of ecosystem performance to capture critical natural capital in the context of resilience will become an increasingly important area for both research and policy in the coming years.

Of course, there is a changing view that economies and societies are also non-equilibrium CAS and have similarly dynamic properties – so the challenge is to find ways to link the environmental–socioeconomic systems-of-systems. Science will play a role in this linkage as a generator of new knowledge, but it must do so in a much more engaged and interactive form and with the recognition of complexity. Whatever form sustainability science takes, a form of ‘postnormal’ science will be involved. Orthodox economics assumes at least short-term equilibrium and the applicability of concepts of marginal utility and essentially instrumental values. Economic models assume ‘well-behaved’ linear dynamics around equilibria. We are going to need a heterodox economics and a set of governance arrangements that does not use outdated physics-based assumptions.

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Publisher: Cambridge University Press
Print publication year: 2007

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