Towards a low-carbon, socially just and high well-being

Towards a low-carbon,
socially just and high
well-being economy:
Putting the pieces
together
ISSR Sustainability Research
2nd May 2014
Tony Greenham
Head of Finance and Business
nef (the new economics foundation)
Four systemic challenges
1. Unsustainable
2. Unfair
3. Unstable
4. Unhappy
nef (the new economics foundation)
Why we need new economic
strategies to meet these challenges
1. Market prices are always wrong
2. We confuse ends with means
3. Odd view of human behaviour
4. Laws of thermodynamics
5. Systems oversimplified
6. Misunderstanding of money
nef (the new economics foundation)
Help is at hand….
1. Market prices are always wrong
Environmental / Social return
2. We confuse ends with means
Wellbeing / philosophy
3. Odd view of human behaviour
Behavioural / sociology
4. Laws of thermodynamics
Ecological economics
5. Systems oversimplified
Complexity economics
6. Misunderstanding of money
Monetary economics
nef (the new economics foundation)
Current framing of progress
Growth
Output
Inputs
Resources
nef (the new economics foundation)
Capital
Labour
Thinking differently about progress
Inputs
Outputs
Resources
Well-being
Social Justice
Intermediating systems
Socio-economic system
nef (the new economics foundation)
(1) Different goals: Happy Planet Index
What is the
measure of
economic
success?
Turning Natural Resources into Human Wellbeing
Long and
happy lives
that don’t cost
the earth
3 components
Life expectancy
Life satisfaction
Ecological
footprint
www.happyplanetindex.org
NEF (2012) ‘Happy Planet Index: 2012 Report’
nef (the new economics foundation)
(2) Rebalancing Time
In the 21st century a
15-hour week will suffice,
and “man will be faced
with his real, his
permanent problem - how
to use his freedom from
pressing economic cares,
how to … live wisely and
agreeably and well.”
NEF (2010) ‘21 Hours’
John Maynard Keynes, 1930,
“Economic possibilities for our grandchildren”
nef (the new economics foundation)
(3) Social return on investment
NEF (2014) ‘Royal Docks Revival’
nef (the new economics foundation)
• £1 invested in high-quality
residential care for
children generates a social
return of between £4 and
£6.10
• £1 invested in alternative,
non-prison based
sentencing for women
offenders generates a
social return of £14
(4) Monetary Reform
• Banks create new money
(bank deposits) when they
lend
• States can create money to
finance low-carbon transition
– Strategic Quantitative Easing
– Sovereign Money
NEF (2011) ‘Where Does Money Come From?’
nef (the new economics foundation)
(5) Complementary currencies
Social technology to match
unmet needs with unused
resources
Community Currencies in Action
www.ccia.eu
nef (the new economics foundation)
Innovative financing
instruments for low-carbon
transition
NEF (2012) ‘Energising Money’
(6) Long-term resource management
• Restoring 43 overfished
European stocks to MSY
– Increase annual catch from
6.2m to 3.5m tonnes
– additional £2.7 billion
annual revenues
– 100,000 new jobs created
NEF (2012) ‘No Catch Investment’
nef (the new economics foundation)
(7) Understanding systems
NEF (2014) ‘Model Behaviour’
IPCC carbon concentration
HMT net debt
IPCC temperature anomoly
IEA oil price projection
nef (the new economics foundation)
Thinking differently about progress
Inputs
Outputs
Resources
Well-being
Social Justice
Intermediating systems
Socio-economic system
nef (the new economics foundation)
Thank you!
ISSR Sustainability Research
2nd May 2014
Tony Greenham
Head of Finance and Business
www.neweconomics.org
@TonyGreenham
@nef
nef (the new economics foundation)

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