Sustainable Economics

society has limited resources and can't produce all goods and services people wish to have 

• how to use resources to satisfy different needs (tradeoff)
• shifts upwards if more resources / technology / skills 

• allocative efficiency: absence of wasted resources
• optimality: achieve objective under given constraints at least cost
• sustainability: concenr for posterity 

• adam smith
• dismal science: environment sets limits to expansion of economic activity 
• absolute scarcity 
• malthus: poor prospects of improving living standards in long run

• relative scarcity: depends on cost more than availability of resources
• resources replaced by human inputs
• growth is possible and dominant objective 
• 1970s
  • environment economics (focus on output)
  • natural economics (focus on input)

• economy as independent system
• aim social justice, fairness 

• neoclassical
  • study of economy-environment interaction is an optional extra
  • prioritize individual preferences and consumer sovereignty
  • efficiency is central
• ecological
  • study of economy-environment interaction is fundamental
  • proritize individual and social health
  • sustainability is central 
• both assume rationality and are anthropogenic, aim to maximize utility of homo oeconomicus 

• perfect: products are homogenous,
  • Buyers and sellers are numerous
  • Have no influence on price,
  • Perfect information
  • Adjust quickly
• monopoolies: one seller controls price 
• oligopoly: few sellers