Realizing an Alternative Political Economy of Sustainability

Arturo Hermann is a “Senior researcher” (“Primo ricercatore”) in economics at the Italian National Institute of Statistics (Istat), Rome, Italy.

"Revisiting the main contributions of heterodox economics and radical ecology is particularly stimulating because it is rapidly becoming clear that we are at a historical juncture where the nature of capitalism is radically changing along with the characteristics of democracy and the problems of environmental sustainability.The neoliberal order that emerged in America in the 1970s after the collapse of the Soviet Union promoted deregulation and globalization with the promise of greater prosperity for all. An indirect consequence of the expansion of this order was the rise of so-called neoclassical economic theories and the corresponding marginalization of alternative approaches, especially institutionalism.In the aftermath of the global financial crisis, it is no longer possible to believe that neoliberal promises have been kept. There are clearly losers as well as winners in the struggle for globalization; the growth of income inequality and the resulting increase in popular discontent have led to the disruption of traditional democratic balances, the growth of political polarization and the worsening of the environmental problems. Neoclassical views do not seem to be able to fully respond to the new challenges that are emerging. Therefore, an approach from different perspectives and different schools of economic thought may be helpful in addressing the current critical juncture.The contributions in this volume provide a critical reflection on the ongoing social and economic transformations, offering the reader stimulating and alternative perspectives on capitalism, democracy and sustainability." Massimo Egidi, Professor of Economics at Libera Università Internazionale degli Studi Sociali Guido Carli in Rome and former rector of the university."Climate emergency and ecological breakdown pose existential threats, and the inadequacy of mainstream economics (largely based on the unrealistic neoclassical notion of "weak sustainability") has been a contributing factor to this ominous state of affairs. This collection, built on constructive pluralism and dialogue, provides an opportunity to think and act differently."Jamie Morgan, Professor of Economics at Leeds Beckett University"Contemporary capitalism faces sustainability challenges on a number of fronts. The events of 2007–09 and the more recent descent into illiberalism question its financial and social sustainability, while the unfolding climate crisis questions its environmental sustainability. These challenges are easy to identify, but the pressing need is to formulate responses. By bringing together contributions from radical ecology and heterodox economics, this book takes important steps towards addressing the urgent need to reconcile economic activity with a finite planet."Mark Setterfield, New School For Social Research

• Introduction Part I : Ecofeminism, Social Ecological Economics, Bioeconomics, Steady State 1. Toward Ecofeminist Radical Political Economy in Action: Strategies for Sustainable Societal Transformations 2. Challenging the Economic Mainstreaming of Sustainability and Social-Ecological Crises 3. Hermans Daly’s Political Economy for Sustainability: The Steady-State and Other Policies for Ending Uneconomic Growth 4. The Bioeconomics of Nicholas Georgescu-Roegen: a new epistemological foundation for economic science 5. Bioeconomics and the approach to environmental sustainability. The ecological transition:a new “economic myth”? Part II: Heterodox Macroeconomics and Sustainability 6. Principles of post-Keynesian Ecological Economics 7. Green Finance 8. A Kaleckian-Schumpeterian Synthesis to Secure Sustainability 9. Economic Policy and Sustainability in a Monetary Economy: A Monetary Theory of Production Approach 10. The social role of central banking in promoting an equitable and sustainable society 11. Step by radical step: the macroeconomics of a degrowth transition Part III : Circular Economy, Civil Economy and Other Heterodox Contributions 12. Shifting to circular economy principles that could counter environmental changes and reduce inequalities 13. Circular Economy and Philosophy of Economics 14. From linear to circular model ESG criteria, EU policies and the new paradigm of civil economy 15. Radical Ecology and Original Institutional Economics