Growth, regulatory, and ecological economics 55(6) Prudence based on uncertainty indicates that substitution and technol-
ogy cannot indefinitely remove resource constraints.The values of ecological economics and the contrast with growth economics
are striking (Romer 1990,Nordhaus1992,Aghion and Howitt 1998, Jones
2002).Growth economics highlights humans being central, consumption driv-
ing the system, intelligence being subservient to short-term market trends, and
substitution and technology eliminating resource scarcity. In ecological eco-
nomics, people understand, adapt and plan both long- and short-term for the
broader natural-and-human system (or urban region) of which they are a part.
Resources are finite and, in the face of uncertainty and expected surprises, pru-
dence dictates conservation of natural resources for a more secure economic
future.
Resources
Resource economics primarily addresses the many forms of natural
resources that represent input capital for an economy. From a broad perspec-
tive, land and water and even space in an urban region are resources. Specific
resources, of course, range from prime agricultural soil to a rare mineral, an
aquifer, a forest, or a recreational greenway.
Resources may be scarce. They may approach depletion. They may be nearly
all degraded. In each case no elegant economic model or ‘‘what if” exercise or
agony about what the market indicates is needed to know that resource con-
servation is important (Dasgupta and Heal 1974 ,Perrings 1991 ,ElSerafy 1991 ,
Millennium Ecosystem Assessment2005). With the resource lost the region is
inherently poorer. Although the valuation of natural resources is a complex
subject beyond the scope here (Costanzaet al.1997b,Patterson2002,National
ResearchCouncil2005), the value lost is partly the short-term reduction in cap-
ital. But more importantly the long-term loss is represented by the constantly
evolving physical/chemical/biological roles played by the resource. In this sense
some of the loss is immeasurable and irreversible.
Planning and resource conservation are among the key solutions in resource
economics. In market economics, usually a fair portion of the costs of resource
use and pollution are shifted asexternalitiesto the public, which pays taxes
and fees to cover some of these costs. Since the full cost is rarely calculated or
covered, resources and the environment degrade a little or a lot. In ecological
economics, more of the costs are shifted to the resource users and the pol-
luters. Consequently more resources are conserved and less of the environment
is degraded.