What is a Paradigm?	is a distinct set of concepts or thought patterns, a set of answers to a specific question.
What is meant by “Social Sciences are multi-paradigmatic”?	Social sciences can apply different sets of answers to the same question.
What are the main conceptual and methodological features of Market Idealism (Neoclassical Economics)	Market Idealism "The market solves it's own problems" 1)It assumes that consumers are independent, full empowered, and act by agency 2) perfect substitution, 3) that prices transmit perfect information. 4)Technological optimism or decopupling Methods: Prices and markets ensure efficent allocation of resources Distribution does not matter No conflict of interest between producers and consumers, because producers act in the interests of consumers And no conflict between capital and labour
What are the main concleptual features of Embedded Markets (Critical Institutional Economics)?	Embedded markets assume markets are a result of society, and thus affected by society morals, views and customs. Structure over agency. Keynesian economy says that state and fiscal policy are necesary to optimice markets. Perfect informaion is not possible, and therefore price and wages not necesarily transmit accurate information.
What was the Marginalist Revolution about?	Shift in the focus from classical economics, from acumulation and production. Neoclassical focus on allocation. Marginal utility of a good or service is the change in the utility from an increase in the consumption of that good or service. So, it puts consumer behavior and not only trade, at the main focus of study
Describe the economy according to the circular flow model.	Firms (Provide) >>>>>>Housholds (buy)
Describe important features of production in neoclassical economics	Capital (Fixed capital (machinery and facilities), working capital (stocks and resources), Financial capital (money), Technological progress, perfect substiotution Reversibility
What are the implications of neoclassical production technology for environmental policy?	No fundamental difference between renewable and non renewable resources, because natural resources can be substituted by other production factors. >Decoupling or Technological optimism
Describe important features of consumption in neoclassical economics (i.e. consumption technology)!	>Perfect substitution! So people can obtain the same marginal utility from other goods and services. > Marginal utility maximiced >Contingent valuation
What are the assumptions about human (or consumer) behavior in Market Idealism?	> Agency (Individuals are autonomous, fully informed, maximise utility take only rational choices) > Consumer sovereignity (Consumers have the power, and react to incentives) >Racional choice theory
What is the role of prices in the economy according to Market Idealism?	Information delivererers. They tell information about availability, supply issues and demand size.
What is meant by “Green Consumerism”? [Slide 26]	capacity of the consumer to purchase goods that (aparently) affect less the environment instead of others that are more harmful, and the set of market provided solutions that respond to that demand. A.k.a. Green washing
Why critics say that Market Idealism is a fantasy of economics as a self-sustaining system?	> to be self sustaining it relies on unrealistic assumptions, like the prices transmit perfect information about scarcity, that consumers are sovereign and that there is perfect substitution as well as reversibility. All of which is not true. Prices often do not transmit enough information, consumers are not well informed and take poor choices, goods and services are not interchangeable and specialy in the case of work, and natural resources, those often not reversible. So, it requires some type of external regulation, like a State.
What are general policy prescriptions in Market Idealism?	>"laissez-faire" or do not interfere with the price system that should provide efficient results if works without intrusion. >Perfect competition, and unrestricted markets cause that inputs (working hours and production factors) and outputs,( production) are at the optimal level, and that utility is maximized.
Are there any reasons for an active state in Market Idealism?	Usually only to enforce contracts, and protect private property. ALso to correct market failures as in the case of Public goods provision ("natural" monopolies) and externalities, and control monopolies
What are externalities?	Positive or negative efects of goods and/or services, that are not reflected in the price.
Which solutions have been proposed to internalize externalities?	>Environmental regulations, or liability laws >Pigouvian tax > Coase theorem (property rights assignment)
What are pigouvian taxes?	Overhead of a price (Like a VAT), to correct prices and charge the "real cost" of a product, including the mitigation of the environmental impact that the product has douring its life cycle. (Polluter pays principle)
Coase Theorem	The definitions of clear property rights on both sides of externalities (causing party and recieving party), so both parties can negociate and compensate the aected party. (Polluter pays principle)
Environmental liability laws	Regulations definig under which circumstances a polluter has to compensate someone (Polluter pays principle). Usualy, precautionary principle used to PREVENT externality.
What is the role of the environment in Market Idealism?	It is a resource (or a production factor) lika any other. Asuming perfect substitution and reversibility of course.
What is Environmental Economics about?	Conserns itself with the economy's insertions into the environment. F.e. pollution. Tries to valuate monetarily the ecosystem services, in an effort to calculate prices more acurately and internalize environmental costs. Defines use value and non-use value (contingent valuation)
What is Natural Resource Economics about?	Concerns itself with the extraction of resources out of the environment, deals with the allocation of this resources, and with the intertemporal allocation of non renewables.
Why do critics argue that the circular flow model of the economy is flawed?	It ignores basicaly the biophysical reality, this means, that it doesn't consider the energy and matter flows defined in the laws of thermodynamics. It describes an isolated system where there are no exchanges of materials or energy with its surroundings.
. What are the main flaws of Market Idealism according to Market Relativism?	>Markets circular flow cause cycles of shrinking (crisis) and growth, and there is no control of this without external stabilizers. > Markets can be in equilibrium with high unemployments, and this is undesirable.
. What are the main flaws of Market Idealism according to Embedded Markets?	Market Idealism is disembedded from culture and reciprocity. It pictures a simplistic view of individuals, without human relations, and without a culture that to some extent shapes trade, utility functions and allocation. There are social relationships, cultural values, moral concerns and even religion that participate, together with economical institutions in the building of the markets. Meaning exchange take place withing a society regulated by a complicated set of factors, not in "vacum" as the idealistic view of markets assume.
. What are the implications of the first and second law of thermodynamics for economics?	1st (mass law), in every transformation process, parts of the energy are wasted, so many transformations mean a lot of energy is lost. 2d (entropy) energy looses quality after each transformation, so, the more natural resources are used in production, the faster the nature looses its utility, the more garbage is produced, etc. So, there is no possibility of continous growth
What triggered the Keynesian Revolution?	The great depression in 1929, as well as the high unemployment rates. THe post I WW scenario and the new deal, served as inspiration tho criticism the current economic theory.
Why do Critical Institutional Economists (i.e. Embedded Markets) criticize that Neoclassical Economics is static?	Because their models don't take into account any dinamic process. The world has constant changing conditions, and Competitive Advantages are not the same over time, but this is hardly aknowledged in neoclassical economy. The economic man
What does it imply that the economy is embedded in society and the environment? Compare the concept of embeddedness with the three pillars approach	That there are dynamical social proceses that participate in the economic process, because humans share and need a sence of meaning and belonging, and take decisions based on structures as well, (they are not only rational). So, economic desicions are collectively taken, not only individual, and the role a person plays in the society, also determines their behavior.... And, there are also environmental factors limiting. So.... it compares to the 3 pillar model: Economy has a social, environmental, and economic component.
What are the roles of institutions in society?	Institution shape society, as they are a product of collective work, and they do the choosing of economic desicions in a macro level, they regulate society and individual behavior
Which categories of institutions do you know and what is their purpose?	> Guiding principles of behavior social conventions, norms and sanctioned rules > Organizations Frims, universities.... > Coordination mechanisms Markets, reciprocity, command, ethics > Democratic institutions Electoral systems, parlaments, etc.
Explain the relevance of conventions as behavioral institutions.	Not writen and simple rules to support a behavioral act in a given context. For example, dress codes, tipping customs etc. S
Explain the relevance of norms as behavioral institutions	Raise the issue o values and what is considered right or appropiate, how do you greet people in different stages of the hierarchiy, deal with bodilyt funcionts, handling of waste going into the environmant, what is "right" for children, for man and woman, etc.
What are formally sanctioned rules?	Rules enforced by a third party, and that rely by institutions made for the purpose of sanctioning, executing or enforcing rules.
. What is meant by “structure and agency are co-evolutionary”?	Institutions are subject to change and social and cultural evolution, and also provide a framework in which behavior is controlled or at least monitored, so people shape institutions and institutions shape people, thats why they are co-evolutionary.
What types of rationality did we discuss and what motivates these different types of rationality?	>Institutions as rationality contexts, the institutilan structure influences the logic or meaning of a certain context or situation. >Individual rationality "I" rationality What is best for you? >Social rationality, What is the best for us?
What kinds of coordination mechanisms are distinguished in the embedded markets approach, and how do these mechanism influence other institutions like values and behavior?	Three kinds of coordination mechanisms: > Trade >Reciprocity (community, returning the favor) >Command (order)
What is “a market” from the perspective of an embedded markets approach?	A coordination mechanism, that serves to organize exchange. It has certain features: self-interest behavior, realm of monetary incentives, and it requires a structure of rights and obligations. Markets are always politically shaped. THere are no perfectly competitive free markets.
Why is power an important concept in the embedded markets approach?	Power influences institutional settings and social relations. It creates distributional conflicts, an, and development conflicts because of disequal power relationships that conflict with consumer sovereignity.
. What is the role of Government and the state in the embedded markets approach?	Regulate and mediate conflicts of itnerest between differrent groups, Support values and motivations that comply with social and environmental requirements Support social cohesion Restrict unlimited expansion of markets and trades (and prevent autodestruction of markets)
Which institutional changes do advocates of the embedded markets approach demand, in order to meet environmental challenges?	Reorientation of institutions thowards solving environmental problems. INstitutions have to develop more ethicals
. What are basic views in Ecological Economics and how do they differ from Natural Resource Economics and Environmental Economics?	Human economy and ecological system are intertwinned and interconnected. (No environmental economics, or natural resource economics, it is more inclusive and holistic) Human economy part of nature> Thermodynamics is included in the system
What are basic features of Ecological Economics?	Limit to growth (termidinamics) Wants a steady state economy Transdisciplinary researchi field evolutionary approach Intra and intergenerational equilty Mantainance of natural capital stock (hard sustainability= Shift of paradign from growth to sustainability
The origins of the concept of sustainable development are closely linked to a publications entitled “The Limits to Growth”. What are the main claims of this publication?	> Constant economic growth is not possible on the long term >There are environmental limits to the system, that will eventually cause it to collapse > Concern is raiced about overuse of resources Changes were verified 30 years later, and the predictions were proven true
According to the definition in the Brundtland Report, what does sustainable development try to achieve?	Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future...
Briefly describe the two models of sustainable development, often found in the literature.	>Three PIllars model Sustainability is achieved when the desirable state is achived in three areas> Economy, jobs are created, there is investment, and wealth is created< Environmental, the nature and resources are protected and kept, and the society is beter off too. > Types of capital model Recongnices the diferent capital inputs required> Natural capital, man made capital, human capital and social capital a
Weak and strong sustainability	nd defines weak sustaiability, a model in which sustainability is achieved when there is gain in the net sum of all capitals, and strong sustainability is when the natural capital remains the same or grows, and also the man/made capital, and natural capital is not replaceable by human.
What is the “feasibility problem” of sustainable development?	To question if it is possible for the economy to attain a state in which production and consumption still grow, over time in the presence of limited natural resources and limiting environmental processes.
What are critical assumptions of neoclassical growth models when it comes to the “feasibility problem”?	There are 3 main asumptions . That resources are indeed substituable or can get substituted , because there will be enough technical progress, and makes prediction about population growth And.... therefore it is easy to get optimistic results with custom made assumptions
Why is the degree of resource sustainability a critical issue around feasibility?	Because some capitals can be accumulated over time, like human capitals and social capitals, but man/made capital growth requires to take out natural capital, and get depleted. so the question is to what extent can those resurces wich can be acumulated can be a substitution for the ones that can not , and can get depleted
Why is inter- and intra-generational justice a critical issue around feasibility?	It sets as criteria to achieve sustainability, that the resources of future generations should not be compromiced to achieve development goals today, no impoverishment of the future humans in favor of the current ones...
Why is the rate of technical progress a critical issue around feasibility?	Because this progress implise to get more output from given quantities of inputs, shrinking the natural resources available or reducing the input of the resources required.... so it can be a cause and solution dpending on the progress type, and affect resource substituatability
Why is the degree of ecosystem stability and resilience a critical issue around feasibility	Because there are treshholds oand critical levels for operation in all ecosystems, which if reached will eventually make the ecosystem disappear. And when biodiversity declines below a certain point, the sistem may simply collapse, but determining this is dificult
When and why environmental concerns have arisen in the industrially developed world?	Specially during the 1960s to 1980s > DDT bioaccumulation > Radioactive fallout from nuclear esting > OPEC oil shock price rice >Ozone depletion
Mention some main aspects of the declaration of the UN Conference on the Human Environment (in Stockholm, 1972).	Discussed the need to protect the environment > Mix of social, and environmental concerns > Environment linked to human well-being > There was not effective action plan but UNEP was established and Projects on long range transport of air
What were the outcomes of the UN Conference on the Human Environment	>Economic development priority (Assuming that in development countries most of the problems are caused by under development >Techno-Optimism and Scientism: Along with social progress science was suposed to improve the environment > So scientific research and development should be promoted >Stribg stats are wanted, but in the frames of international law >
What were the outcomes of the UN Conference in Rio 1992?	> International cooperation for global agreements > development of global partnership in planning for environmental protection and social and economic development > Environmental protection is actually good for the environment
What were the main topics and concerns of the 4th World Summit on Environment and Development in Rio 2012?	>Green economy in the context of sustainable development >Institutional framework for sustainable development > ENviroonment subordinated to concerns over economic system stability and growth
Give an overview how concerns over sustainability changed in international discourse and power from 1972 (Stockholm) to 2012 (Rio)	Stockholm >Government main actor, > Language of rights and responsibilites >Human needs need to be met > Environments to be safeguarded >Strong state 1992 Rio >Government and NGO as main actor >Language of participation and multilateralism > Environment in need of management >Local action and citizen empowerment 2012 Rio >FInanciers and corporations main actors > Language o markets, pricin and trading > Environment in need of exploitation and value capture > Humans to benefit from economic growth >COmpetition and unilateralism
Who are the main actors in each of the “three discourses on problem solving”?	> Administrative rationalism Experts solve problems >Participatory governance Let the people solve the problems >Market utopianism Economic actors sovlve the problems
What is the role of experts for problem solving in “Administrative Rationalism”?	Administrative responses therefore associated to environmental problems with a major > Listen to the expert, and they give us advice but there is not actual dialog Churchill: 5 experts and 5 different solutions
What are the limits and concerns over “Technocentric Governance” (i.e. Administrative Rationalism)?	There is no dialog, unilateral taking of the calls > No representation, no societal dialoge > Very strong in france and germany >COmplex technical discourse > Premature closure of debate >Exclusion of plural values and perspectives > Ignoring lay knowledge
Which kinds of group participatory approaches exist, to achieve involvement of citizens in problem solving?	.Advisory committees Citizen groups or councils, jurys Focus groups Mediation Referendums Public survey Public hearings direct voting
What is the role of markets and prices for problem solving in “Market Utopianism”?	Market liberalisms says: Market incentives will change behaviour > If we get prices right >Hostile to government regulation (government as waste or resources) Rhetoric is anti government and pro business >>> Privatize everything
. Why do advocates of “Market Utopianism” advocate privatization as a common strategy of problem solving?	Big problem with "common" goods, so the solution is to make them private > Market trading is eficient allocation, so equated to maximising social welfare > Legal system needed to enforce private property rights to land and water Coase theorem
Why does the stabilization of atmospheric temperatures require to leave most remaining resources of fossil fuels untouched?	Because 80% reduction on 1990 levels is needed in order to stabilize atmospheric concentrations
How has the strategy of the UNFCCC to deal with climate change has changed from the 1990 to 2010?	Prevention to risk management: 1994First, to stabilice greenhouse hgas concentration to prevent dangerous human intereference 2015 Paris: To reduce the risks and impacts of climate change as it is not feasible to avoid it or prevent it
. If carbon emissions are considered as externalities, what are the implications for the necessity to correct prices (i.e. internalize externalities)?	That all consumer goods will get more expensive at first, and many marginal consumer will have to avoid consuming a certain product, afecting millions of people, specially if the prices in food or medicine go high.
What does Gross Domestic Product (GDP) measure?	Measures total market value of all final goods and services in a geographic area, during a period of time Measures lows, not stocks
Describe the historical development of world GDP per capita from A.D. 1500 until 2000.	It has increased dramatically after the industrial revolution. Before the 19th century, it was not really diferent from the begginig of the enlightment. But since the 1900 it has skyrocketed. Going from the equivalent of less than 500 USD/Person/Year to more than 6000...
. Which economic factors does GDP not measure?	>"Shadow economy" or informal sector > The domestic labor.... > and "Idyll time", nor productive or consumptive time
Which ecological factors does GDP not measure?	> Externalities: damages on the ecosystem > Depletion of non renewable resources > Reparing ecological damage by technologie
5. Which social factors does GDP not measure?	> NO reflection on who beneits from production and consumption > No measures of equity, social capital, or imaterial goods but education > No measuremments of healt (only in case of deseases) > No measurement of peace, only of war expenditure
What is GDP growth and what are necessary preconditions for it?	Growth is the rise in GDP value over time Precondition for it is the availability of productive assets And increases in the stocks of productive assets
What are the determinants of GDP growth according to the Neoclassical growth model?	On the input factors: labor, capital and technical progress and under the assumptions of > Constant rate of population growth, savings, and technical change
What are sustainable innovations and why they might be part of the problem rather than a solution to environmental degradation?	Innovations that somehow reduce or substitute less sustainable goods: for example renewable energy vs fossil. Danger of stabilization of unsustainable habits instead of change: More electtric cars instead of public transport > Rebound effect
What is the role of technological innovations for GDP Growth?	It induces creates new products and services, so market expands, people have new neeeds. Or process innovation: GDP grows via improved productive capacity
According to which approaches are GDP growth and environmental protection compatible? What is the main reason for this compatibility?	Ecological Modernization Environmental Kuznetz Green growth They come from the mainstream economics and rely on the market
. According to which approach are GDP growth and environmental protection NOT compatible? What are the main implications?	Industrial ecology, degrowh, ecological economics, they aproach economy differently, trying to change economic models and behavior, not compatible with our current market system.
What are the fundamental tenets of “Ecological Modernization”?	>It relies to a large extend on market idealism > No change of growth paradign necessary > Decoupling of economic growth from negative environmental consequences > Solutions can be found in the context of capitalism (Pressures from consumers, legislators and also environmental groups)
What question tries the Environmental Kuznets Curve to answer?	Does higher income and growth lad to more pollution?
. Explain the Environmental Kuznets Curve.	THe environmetnal degradation curve has 3 stages, rising for pre industrial economies, high and turning for industrial economies, and the degradation is going back down for post industrial services economy, stating that the more advanced economies would suffer from less environmental degradation
What has the Environmental Kuznets Curve been criticized for?	>weak empirical evidence >low hanging fruits already been picked (easy to achieve improvements) > Absence of institutional frameworks for changing quality of growth (regulations taxation, subsidies) >idealized view of technology
Mention and explain key concepts of Green Growth.	Decoupling> Cutting the link between economic growth and environmental degradation Dematerialization> Contribution to decopling using less imputs > Eco efficiency, production of commodities of beter quality with less EI Substitution, change consumption behavior to less environmentally harmful
How do you assess the possibility for decoupling of GDP growth and energy use, according to the case study about energy?	There is no absolute decouplinc of gdp growth and energy use > Increased energy efficiency only postpones resource scarcity with the growth requirements of the market > Rebound efect is an important restriction Current energy use is no longer affordable due to climate change
What are elements of a sustainable energy system?	> Less energy comsumption and a lo of REnewables!
What are Rebound Effects?	Decrease in thhe price due to more efficiency also leads to more consumption, so at the end no environmentla improvement...
How is the “Energy Return on Investment” (EROI) defined?	Ratio of the energy delviered by a process to the energy used directly and indirectly in that process.
Give examples for EROIs (Energy Return on Investment) of various energy sources and their historical development	for example of oil, at the beggining 100:1 with shallow easy accesible deposits in texas, now, 15:1 or 10:1 are good ROEI..... with solar it is geting better
Given the current sources of energy supply, how do you consider the feasibility to switch to renewable energy sources within a short period of time?	The ROEI if oil is still better than some emerging technologies like solar, even though they are getting better very fast.... so in the short term it is unlikely, but they are fastly catching up, so in the middle term, yes
Which measures do you consider necessary in order to achieve the targets of sustainable energy use?	Drastic reduction s of nenergy necessary, improvement of efficiency, regulation on energy prices so rebound effects are not drastic....
In 2014 the Global Commission on the Economy and Climate published a report entitled “Better Growth, Better Climate”. What are their fundamental tenets and what do you think about them?	> Tackling climate change is a pro-growth strategy, as well as internalizing externalities and trading like in the carbon market > environmental crisis as an opportunity to build lasting economic growth >Competitive markets are vital
. What is the role of GDP growth in recent international debates and documents about the environment?	GDP growth is seen as key to achieve prosperity and welfare and to help humanity to be better off... so lots are seeng to do grow in a better and more sustainable way instead of trying not to grow.
. What are important myths about the role of GDP growth for addressing income inequality and happiness?	That only with growth we well achive wellbeeing and welfare.... Income inequity is addressed by economic growth: not, because of the fifth most rich keep the richness. Once basic needs are met, more growh come to improve happyness.
Summarize the critique of Green Growth.	> Greenwashing > Business as usual with its problems >>rising inequality >> investments in capital intensiv projects >> Capital interests dominates >> socil cost not important >> Profit more important than environment > Delay of problems > Desplacement of problems (biofuel or gas= > Rich countries shift contamination to global south
What is “Industrial Ecology”?	The study of material and energy flows through industry systems, instead of monetary stocks and flows. >> Focused on material and energy and its itneraction with the biosphere
. What is research in the field of “Industrial Ecology” about?	. What is research in the field of “Industrial Ecology” about? > Maerial and energy flow studies > life cycle analycis (LCA) > Technological change and environment
. What are the origins of the “Degrowth” movement?	Decroissance, > Concern over flows of natural resources, and not of goods > The aplication of thermodynamics to economy and
What is meant by “Degrowth”?	Political slogan that tries to separate the concepts of growth and wellfare and economical succes. Implies It hast anti consumerist and anti-capitalist ideas. It is a set of ideals responding to the limits.-to growth dilemma.
Degrowth has been described as a scientific, political and social movement. What are the main concerns in these different branches?	> Scientificly, check alternative paths to prosperity > Politics: democracy, equality, justice aimed at a society more democratic > Social, includes numerous social groups with alternatives to the current growth based economic model.
Necessary changes, economical political and social	Ecologycal >Recognizing GDP growth is unsustainable > Acknowledging that GDP trtransforms low entropy stocks into high entropy heat and emissions Political Democratization of society and people, more autonomy, re-politization of science and technology Economical Less materials, less consumption, community currencies, private property not so important
Implications of degrowth for ecosystem economy and society?	> No overuse of resources, operate within tlimits > Focus on all ecosystem > environmental justice > Limits to extraction > Institutional changes, social changes thowards sustainability "common property" > less consumption

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