52 Economic dimensions and socio-cultural patterns
most familiar case is ascribing monetary value, such as euros, yen, or dollars, to
things, a foundation of most economics. Converting everything to calorie equiv-
alents is another approach (Odum1973,Odum and Odum 1981 ). Yetanewer
approach spreading in both economics and the public is the ecological foot-
print. In footprint analyses things are converted to area, such as hectares or
acres, as a universal currency (Wackernagel and Rees1996,Costanza2000,Rees
2003,Lucket al.2001).Growth and regulatory economics
Urban regions cut across all the current economic systems worldwide
(World Bank2006). The 38 regions considered in detail in this book cover most
systems, varying, for example, from economics driven by strong market forces to
strong government controls. The formal constructs of industrialized economies
contrast with the informal financial networks and traditions of some developing
nations. Thus the current economic system of China applies poorly to France,
that of Honduras poorly to Japan, and that of the USA poorly to Chad. Urban
regions in all six of these countries are examined in later chapters.
Withroots in China, Europe, and elsewhere, economic growth emerged in
theearly 1940s as one of the ‘‘big ideas” of history (McNeill2000).Growth eco-
nomicsis the widespread familiar approach embodied in the phrase, ‘‘Let the free
market determine it.” Three characteristics are central (Dasgupta and Heal 1974 ,
Romer1990,Aghion and Howitt1998,Gomez-Ibanez1999,Jones2002). Human
consumers are the central players. Preferences and tastes are the predominant
determining force. And the resource base is essentially limitless, because substi-
tution or technology can overcome a limited resource.
Thus for society, the goal is to sustain economic growth, with the assumption
that this can continue forever. Success minimizes the ‘‘too high” and ‘‘too low”
ratesovertime. For individuals, the goal is often to attain happiness or a high
quality of life (Jacobs1992,Costanzaet al.1997a,Kasser2003,Easterlin2003,
Layard2005). Broad economic measures of individual success usually focus on
high economic status (wealth) or high consumption rate.
The essentially limitless resource base assumes that, if a resource becomes
scarce, another resource (a different type or trade from a different area) can be
substituted or technologically developed (Dasgupta and Heal 1974 ,Aghion and
Howitt1998,Pearceand Ulph1999,Jones2002). Indeed, human-made capital can
be substituted for natural resource inputs to production. Protecting or conserv-
ing natural resources reduces the need for substitution or technical progress.
But more importantly in growth economics, the limitless resource base means
that there is no essential need to protect a particular natural resource.