Transcript 1. What is natural resource economics & why is it important?

14.
Ethical Issues
In Sustainability
of Agriculture & the Environment
Larry D. Sanders
Spring 2002
Dept. of Ag Economics
Oklahoma State University
1
INTRODUCTION


Purpose:
– to understand ethical issues related to agriculture and the
environment
Learning Objectives:
1. To review the concept of sustainability with respect to
agriculture & the environment.
2. To understand the alternative concepts of sustainability &
respective criticisms.
3. To understand the ethical issues related to sustainability.
4. The concept of sustainability with respect to poor developing
countries & the global system
5. The importance of long term thinking to avoid possibly
irreversible or very costly damage & loss of life
6.To understand the keys to sustainable economic development.
2
Spaceship Earth . . .
“We travel together, passengers on a little
spaceship, dependent on its vulnerable reserves of
air and soil; all committed for our safety to its’
security and peace; preserved from annihilation
only by the care, the work, and, I will say, the love
we give our fragile craft. We cannot maintain it
half fortunate, half miserable, half confident, half
despairing, half slave to the ancient enemies of
man, half free in a liberation of resources
undreamed of until this day. No craft, no crew can
travel safely with such vast contradictions. On
their resolution depends the survival of us all.”
--Adlai Stevenson, 195?
3
How to Boil a Frog:
“If you drop a frog in a pot of boiling water, it will
of course frantically try to clamber out. But if you
place it gently in a pot of tepid water and turn the
heat on low, it will float there quite placidly. As
the water gradually heats up, the frog will sink
into a tranquil stupor, exactly like one of us in a
hot bath, and before long, with a smile on its face,
it will unresistingly allow itself to be boiled to
death. . . . an example of the smiling-boiled-frog
phenomenon, is provided by our own culture.”
--”B” in The Story of B
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Sustainable Agriculture: the Ideal “to live in
harmony w/nature” or the Idea “to maintain
profitable operation”?
Pre-Mechanical
Revolution Farm
(1940s)
 Diversified family farm
 Relatively small
(200 ac?)
 Several farm
enterprises (livestock,
grain, vegetables, …)
 Self-sustaining, no offfarm income
Present-Day Farm (2000s)
 Fewer people farming more
acres fewer enterprises
 Many by managers, not
families
 Farm populations down
 Higher yields
 Capital-intensive
 Dependent on chemicals,
equipment, irrigation
 Off-farm income important
5
“Sustainable” Agriculture grew out of
concerns/claims with postwar US ag. . .
1.
2.
3.
4.
5.
6.
Human health & safety
The environment
Future availability of natural resources required for food
production
Policies/technologies favor capital-intensive farming
Decrease profitability of mid-sized, family farms
Unintended consequences:
1. Polluted water
2. Depleted soil/energy resources
3. Habitat destruction
4. Unsafe food
5. Depopulated rural areas
6. Concentration of capital
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Sustainable Ag as Alternative Assumes
no Undesirable Consequences
 Wes
Jackson, New Roots for Agriculture
– Ag failure part of broader spritual failure
» Dominant value: pursuit of wealth & ethic of self-interest
misses basic value of land
– “Farm as food factory” vs. “Farm as hearth”
– Soil as “placenta . . . living organism . . . is now dying. . . utterly
senseless, & portends our own. . .”
– “Alternative Agriculture”—perennial polyculture mimics natural
prairie
– Research to support perennialism, ag ecosystem, “domestic
prairies” (The Land Institute)
– Greed of conventional view vs. hearth as spiritual & technical
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alternative
Sustainable Ag as Alternative Assumes
no Undesirable Consequences (cont.)
 Miguel Altieri
& Agroecology
– Peasant farmers use sophisticated mix of
crops/practices, limit risks of pests, drought, other
natural disasters
– Regional variation, local adaptation w/in unique
ecosystems is “agroecology”
– Scientific emphasis upon universal laws, replicability
of experiments inappropriate for agriculture
» Leads to elimination of sources of variability
– Farms do better when crops adapt to unique local
ecosystems
.
8
Sustainable Ag as Alternative Assumes
no Undesirable Consequences (cont.)
 Miguel Altieri
& Agroecology (continued)
– Conventional practices profitable in short run lead to
dependence upon
» New science, technology
» Agribusiness firms
» Government support
Industrialized farming-friendly land/credit
policies
Subsidized inputs (fertilizer, feed, chemicals,
irrigation
Not internalizing environmental costs to society 9
Sustainable Ag as Alternative Assumes
no Undesirable Consequences (cont.)
 Miguel Altieri
& Agroecology (continued)
– Agroecology protects family farms
– Industrial agriculture serves needs of scientists &
agribusiness, not farmers
– Research needed to meet local conditions of specific
farms
Note from TMR: Marxist overtones in rejecting need
for introduced capital in production process
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Sustainable Ag as Alternative Assumes
no Undesirable Consequences (cont.)
 The
–
–
–
–
–
“Standard View”
Most involved in “Sustainable Agriculture”
movement not as systematic as Jackson, Altieri in
criticism
More pragmatic management perspective of “what
works”
Based on concept that exploitation of natural
resources must be sustainable (consider threshold
levels)
Empirical facts don’t consider sustainable judgments
Need for land, farms, farm families, rural
communities, banks, government to sustain certain
farm systems w/o disintegration/ collapse
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Sustainability Concept & the Questions
Continue to Evolve . . . (continued)
“ . . .sustainable development . . . meets the needs of the
present without compromising the ability of future
generations to meet their own needs.” 1987, Brundtland
Commission
 Which empirical views “right”?
–
–
–
–
–
Global Warming?
Conservation tillage?
Carbon sequestration?
Hazardous waste management?
Biodiversity?
 The
cost of “right” decision vs. “wrong” decision
– Economic restructuring/loss vs. irreversibility
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Sustainability Concept & the Questions
Continue to Evolve . . . (continued)
 R.
Carson’s Silent Spring (1962) dire predictions of
unsustainability w/chemical future vs. chemical company
claims & later scientific studies
 Economic development to sustain poor/hungry masses
(“make the pie bigger”) vs. claims of over-population
(Ehrlich, “spaceship Earth”), natural resource shortages
(Meadows) & environmental catastrophe
– Western, North, Developed, Industrialized, Wealthy countries vs.
Eastern, Southern, Less Developed, Peasant, Poor countries
– Progress & growth & development = Good & right?
– Growth is relative, qualitative, sometimes inappropriate?
13
Sustainability Concept & the Questions
Continue to Evolve . . . (continued)
 Goodwin
challenges GNP as appropriate measure of
well-being
– Measures wealth, not distributional equity
– Masks moral issues
– Utilitarian efficiency concept doesn’t answer critical questions
(morality? Current vs. future generations? Impacts on nature?)
 Technological
Fix & unlimited substitutability (J. Simon)
concepts allow optimistic view of exploitation of nature
 Goodin, Beckerman-Daly essays challenge w/questions of
“irreplaceability” & “irreversibility”; Should we trust
the market & technology to always have a solution?
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Sustainability Concept & the Questions
Continue to Evolve . . . (continued)
 Time
factor & who’s deciding are critical
– Human life spans necessarily relevant (even if
anthropocentric)
– Sustainability/alternative proponents (technological
pessimists) may be wrong in next 50-100 years, but right
in next 100-300 years
» Is that relevant? (“so far, so good”)
– “Tragedy of the Commons” vs. the “tyranny of private
greed” challenges extremes of public social control &
privatization
» Open access externality vs. property rights
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Sustainability Concept & the Questions
Continue to Evolve . . . (continued)
 VP:
How to make sustainability concept an
evaluation criterion?
– What can be sustained vs. what ought to be sustained
» Beckerman: because both fused together, “hopelessly
blurred”, but need to answer both questions
– Clarify what counts as relevant practice.
– Should the “maximizing assumption” be discarded
» Shiva: incompatible w/sustainability
» Instrumental vs. intrinsic value
– “Wrong jungle” vs. success of progress
16
TMR: Is sustainability the “right”
criterion to evaluate agriculture?
 If
“Yes”--Historic examples: Babylon (irrigation fails);
Chaco (over-population/weather change); Africa
(desertification)
 If “No—too strong”: some sustainable goals met while
others violated
– Example: Conservation tillage may cut soil erosion, but added
use of chemicals may pollute environment, have lower profits
 If
“No—too weak”: doesn’t provide evaluative criterion for
choices including ethical issues (“normative concept
masquerading as a descriptive one”)
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TMR: Evaluating Alternative
Agriculture (not sustainable ag)
 Alternative Ag
attempts to:
– Reduce use of purchased synthetic chemical inputs
– Include such farm practices as
» Crop rotations
» Integrated pest management
» Low-intensity animal production systems
» Tillage/planting practices to conserve soil/water & control
weeds
– Promotes diversified, multi-enterprise farming
– Promotes ag research needed to develop effective
alternative ag practices
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Some Anticipated Ethical Issues
w/Alternative Agriculture
 Costs
to consumers?
– Food costs may increase
– Distribution questions
 Food
security threatened?
 Land value changes?
– Increased: could accelerate concentration
– Decreased: could reduce wealth base for farmers
 More
labor in agriculture?
– Lower income in rural communities?
 More
livestock on farms?
– Competition with wildlife?
 More
regulation?
– Limits choices?
19
Sustainable Agriculture Adapted by
Commercial Agriculture . . .
“An integrated system of plant & animal production
practices having a site specific application that will, over
the long term: satisfy human food & fiber needs; enhance
environmental quality & the natural resource base upon
which the agricultural economy depends; make the most
efficient use of nonrenewable resources and on-farm
resources and integrate, where appropriate, natural
biological cycles & controls; sustain the economic viability
of farm farm operation; and enhance the quality of life for
farmers and society as a whole.”
--The Food, Agriculture, Conservation, & Trade Act of 1990
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Sustainable Development—USDA
Guiding Principles (2000):
 Sustainable Ag—USDA supports
economic,
environmental, & social sustainability of diverse
food, fiber, agriculture, forest, & range systems.
 Sustainable Forestry—USDA balances the goals of
improved production & profitability, stewardship of
natural resources & ecological systems, and
enhancement of the vitality of rural communities.
 Sustainable Rural Community Development—USDA
integrates these goals into its policies and programs,
particularly through interagency collaboration,
partnerships and outreach.
21
Imperatives for Sustainable Systems
Economy
(efficiency)
Environment
(maintain/
enhance)
From S. Hackett
Individual/
Community
(cohesion)
22
Sustainability:
 Normative
standard/social goal
 Vision of the future
 Iroquois Confederation
– Evaluate decisions based on well-being of tribe 7
generations into future
 More
inclusive/comprehensive view of economic
development/well-being
 Whatever it takes to maintain the lives &
livelihoods of people in the system
From S. Hackett
23
Sustainability as an Ethical Standard
 Individualism
vs. interdependence
 Need buy-in by key participants
 Crosses disciplines
 Concept of “multifunctionality” for
sustaining farms and the environment
24
Energy Trends--Sustainable?
(1990-2000 annual growth rates)
 Coal
(0%)
60
50
40
WORLD
OIL PRODUCTION
(mil.bls)
30
20
10
0
1990
 Nuclear Power (1%)
70
1970
Power (22%)
 Solar (16%)
 Geothermal (4%)
 Oil Production (2%)
 Hydro Power (2%)
1950
 Wind
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27
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Exponential Growth:
the 29th Day
“A French riddle for children illustrates another aspect of
exponential growth--the apparent suddenness with which
it approaches a fixed limit. Suppose you own a pond on
which a water lily is growing. The lily plant doubles in
size each day. If the lily were allowed to grow unchecked,
it would completely cover the pond in 30 days, choking off
other forms of life in the water. For a long time the lily
plant seems small, & so you decide not to worry about
cutting it back until it covers half the pond. On what day
will that be? On the 29th day, of course. You have one day
to save your pond.” (D. Meadows et al, 1972)
29
Exponential Growth & Doubling Time
Growth Rate (%)
0.1
0.5
1.0
4.0
7.0
10.0
Doubling Time (yrs)
700
140
70
18
10
7
30
Energy Reserves--Past Predictions
Reserves
 Meadows
et al estimates of
selected nonrenewable resource
reserves, static vs. exponential
(1972):
– Natural Gas--38-22 years
– Petroleum--31-20 years
– Coal--2300-111 years
 What did Meadows overlook or
underestimate?
OIL
NATURAL
GAS
COAL
1992
1994
2083
time
31
Energy--Policy & Environment to
achieve sustainability
 National
Energy Strategy
 How to achieve MCs = MBp?
– Market Pollution Permits
– Per unit Pollution Taxes
– Liability & Bonding Systems
for Large Stationary
Polluters
– Fuel Taxes, Options &
Impacts
– Research & Development
32
Agrarian Evolution & Long Term Thinking
 Process
of agricultural evolution has led to a small
percentage of large farms producing most of sales
in US
– displaced farm labor has moved into non-ag sector
either in rural communities becoming more diversified
or moving to urban areas
 Agricultural
evolution in developing countries
more rapid, more disruptive, more destructive &
harmful
– 40-50% world population lives in urban slums
33
Urban/environmental pressures
increasing
 Low-income
countries face water shortages,
water pollution, air pollution, minimal shelter
shortages, transportation stresses
 Industrialization that is needed to uplift
economies will result in greater stresses on
environment & natural resource base
 1.2-1.3 billion in absolute poverty
 2/3 of world population live on less than $2/day
34
“Market Myopia”?
 Biased
w/short term perspective
 Discount rates favor present & devalue long
term
 Tend to under-value cultural/social costs
35
Poor Countries less efficient in energy
use, thus more wasteful & polluting
 Developed
(relatively wealthy) countries have
decreased CO2/GDP$ emissions 50% in past 30
years
 Low-income countries produce about 5x more
emissions/GDP$ than rich countries
 Example:
1. US co2 emissions/person: 24x India
2. US co2 emissions/GDP$: 1/3 of India levels
36
Poor Countries’ access to clean air/water
result in severe health problems
 Over
1 billion people don’t have access to
safe drinking water
 2 billion don’t have adequate sanitation
 High rates of illness/disabilities
37
Economic Development Argument
 Raise
people out of poverty
 Lower fertility rates
 Increase use of cleaner, less resource-intensive
technologies
 Often destructive to culture
 More sustainable?
– No guarantee that technology will keep up
– tendency for multinational corporate exploitation
– failures of empowerment often occur (especially
w/women), leading to dependency, injustice,
corruption, more exploitation, political destabilization
38
Income Distribution increasingly skewed
 Wealthiest
20% of world population
accounts for 83% of world income
 Poorest 20% account for 1.4% of world
income
 Gap has more than doubled since 1960
 US: Top 1% have as much after tax income
as bottom 100 million people (60%+)
39
Arguments for failure of sustainable
environmental systems
 Rural
poor living in fragile ecosystems
 Ineffective property rights/lack of enforcement
 Concentration of power/lack of accountability
(especially w/multinationals, & non-democratic
governments)
 Trade in waste/toxics
 Trade agreements that weaken environmental
protection
40
Arguments for failure of sustainable
environmental systems (continued)
 Political
power controlling; lack of public access
 Government/corporate control of news media
 Market has a short term perspective
 Tax incentives distort environment/natural
resource management
 Lack of leadership in fostering ethical vision of
sustainability
 Cultural dysfunction may lead to social problems
41
Alternatives that may lead to sustainable
global situation
 Disaster(s)
cause rapid reduction in population?
 Government intervention?
– incentives
– command & control
– “new world order”
 Free
Market may work?
 Multinationals take over?
42
Sustainable Economic Development
(ch. 13 Hackett)
 Broadens
the traditional view of economic development
to include social & environmental factors
 Traditional economic development:
–
–
–
–
focus on income growth (real per-capita income)
sometimes also addresses distributional issues
tends to favor large-scale projects
aid thru technical/financial assistance, & loans
 Sustainable
–
–
–
–
development:
income growth
education
environmental regulations
information access/empowerment
-- local needs-based
--family planning
-- ecotourism
43
Alternate Theories in Sustainable
Economic Development
Weak Form
 “Technological fix”;
substitution ok
 Limitations
– weak on protecting
environment
Strong Form
 Natural capital is
unique; substitution
won’t work
 Limitations
– ignores new
technology &
substitution concept
44
Alternate Theories in Sustainable
Economic Development (continued)
Weak Form
 Arguments favoring
Strong Form
 Arguments favoring
– Less Costly in short-tomid-term
 Policy
– Uncertainty
– Irreversibility
– Scale (threshold
effects, etc.)
Implications
– counterbalancing effects
– environmental mitigation

Policy Implications
– safe minimum
standards
– preservation
45
“Hard Path” vs. “Soft Path”
 “Hard
Path”
– dependence on nonrenewable fossil fuels (&
polluting energy/production systems)
– regional/national energy grids
 “Soft
Path”
– government intervention to more efficient energy,
renewable & less-polluting energy/production
sources
– decentralized energy production (local & homebased)
46
Soft Path Alternative Energy Sources
 Solar
 Biomass
 Wind
 Hydrogen
 Methane
 Ocean
waves
47
The Challenge for Sustainable
Production Technology
 Create
firm-level profit opportunities
 Provide similar goods/services or alternative that
fill similar needs
 Be not much more expensive than conventional
alternative
 Educate producers/consumers on need for change
 Maintain competitiveness in the market
48
Product Life-cycle Analysis
 Evaluation
of environmental & natural resource
impacts of products/services throughout
lifecycle from extraction, production,
marketing/distribution, use & disposal
 European method for waste management policy
– responsibility for disposal of aluminum cans is with
the company that is selling the product in aluminum
cans (Coke, Pepsi, etc.)
49
Government Intervention Options
 EPR
(Extended Producer Responsibility)
Programs (life cycling)
 Tax/subsidize
 Eco-labelling
 Standards
 Fund research/development
 Education
50
References
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Altieri, M. Agroecology: The Scientific Basis of Alternative
Agriculture, Westview Press, Boulder, 1987.
Ehrlich, P. & R. Harriman. How to be a Survivor: A Plan to Save
Spaceship Earth, Ballantine Books, New York, 1971.
Hackett, S., Environmental & Natural Resources Economics,
M.E. Sharpe, 1998.
Jackson, W. New Roots for Agriculture, University of Nebraska
Press, Lincoln, 1985.
Quinn, D. The Story of B, Bantam Books, New York, 1996.
Sanders’ notes
TMR
UN World Commission on Environment & Development, “Our
Common Future” (Brundtland Report), 1987.
VP
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Something to think about . . .
“ Parents, teach your children. Children, teach
your parents. Teachers, teach your pupils.
Pupils, teach your teachers.
“Vision is the river, and we who have changed are
the flood.
“ . . . The world will not be saved by old minds
with new programs. If the world is saved, it will
be saved by new minds—with no programs.”
--Jared Osborne in The Story of B
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