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Abstract. Natural capital models attempt to remediate the relationship between economics and
ecology either by conjoining models and theories from each discipline or by finding a type of phenomena that can be meaningfully measured by both fields. The development of a widely accepted
model that integrates economics and ecology has eluded researchers since the early 1970s. This paper
offers an historical and philosophical perspective on some of the conceptual problems or obstacles
that hinder the development of natural capital models. In particular, the disciplinary assumptions
of economic science and ecological science are examined and it is argued that these assumptions
are antithetical. Hence, the development of an effective and accepted natural capital model will
require that economics and ecology reconsider their self-conceptions as sciences. For the purposes
of theoretical research and practical policy, the paper cautions against confusing the issue of whether
or not economic models accord with ecological models with the issue of whether or not economic
activities accord with ecological realities.
Keywords: ecology, economics, history, human science, natural capital, natural science, philosophy
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domain of the idea of natural capital, while answers to the second question consider
how natural capital is to be measured or tracked. Answers to the third question help
provide a means of evaluating the relative effectiveness of proposed natural capital
models.
Of course, these may be considered fairly simple questions, which in a general
form should be answered in any research proposal in order to clarify the scope and
content of the research. However, the apparent simplicity of these questions belies
their complexity at two levels. First, these three questions are intimately related.
It would seem difficult if not impossible to begin developing a model of natural
capital without some clear understanding of what natural capital is and the purposes
for which natural capital is being modeled. Second, answers to any one question
tend to limit potential answers to the other questions. That is, the application of
a particular set of modeling techniques or methods will have implications for the
definition of natural capital as well as its potential usefulness. Similarly, if natural
capital models are to be used in particular contexts, then this will limit and constrict the modeling techniques available and this in turn will affect the definition.
Answers to basic or simple questions posed at the beginning of research carry long
term repercussions for both the structure of research and the end results or products
of research. In the long run, it seems likely that there will be several interpretations
of the idea of natural capital which will accord with several different models of
natural capital each of which may be effective in a different context. What will
ultimately distinguish different approaches to understanding natural capital is not
necessarily different research findings, but different answers to the basic questions
established at the outset of research.
The objective of this paper is not to advocate particular answers to any of these
basic questions, for each question probably has many reasonable and cogent answers. Nor will this paper advocate any single definition of natural capital or any
single approach to modeling natural capital, for what constitutes a good definition
and model is as intimated very much dependent on research objectives. The intention of this paper is to help contribute to the formation of natural capital models by
clarifying some of the conceptual difficulties that obstruct the formation of such a
model. The first part of the paper will offer a brief survey of some of the historical
sympathies and antipathies between ecological science and economic science and
explore the implications of these for the idea of natural capital. The second part of
the paper will inspect some of the basic assumptions and definitions that underwrite
economics and ecology in order to assess exactly what a natural capital model will
need to undertake in order to successfully mediate between ecological science and
economic science. On these foundations, the conclusion will assess what might
and might not be reasonably expected from natural capital models. The hope of
the paper is that a clearer understanding of the relationship between nature and
capital, and between economic science and ecological science, will contribute to
the development of more robust and more clearly defined models.
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problems. In the early 1970s, Howard Odum began offering an energy circuit
model for understanding relationships between the social and the ecological and
proposed an energy unit as a common measure. Later efforts by Odum, and elsewhere B. Hannon, R. Costanza and R. A. Herendeen, to refine the original work has
been met with interest, but without widespread adoption. Through the 1980s and
1990s, these early efforts to develop an integrated model have been continued by
many others, among them Robert Constanza, Herman E. Daly, William Nordhaus
and David Pearce. But as yet there exists no model or group of models that serve
to integrate the concerns of economics with the concerns of ecology. The absence
of any significant consensus after some three decades of time, effort and expertise
leads to the question: what is it about economic science and ecological science that
makes them so difficult to integrate?
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At political and policy levels, recurring interest in natural capital and other
similar ideas is probably a consequence of problems inherent in the process of
building political consensus on environmental issues as well as the difficulties
inherent in evaluating the effectiveness of existing environmental programs. Not
unsurprisingly, there are enormous difficulties in creating consensus among political participants with different interests and aspirations. And so, in the political
arena, there is little agreement about the extent of environmental problems, the
ecologically most sound policies for ameliorating environmental degradation, and
the most effective and efficient means of implementing these policies. A natural
capital model, mandated by both economic science and ecological science, could
be a powerful force assisting the creation of political consensus so that corrective
policy could be implemented. In every respect, an accepted and robust natural capital model would seem to be a panacea for the problems of modern environmental
politics.
From this perspective, the principal barrier to political agreement and action
would appear to be the lack of an agreed upon common measure or indicator. A
useful natural capital model would provide a measure or indicator which could
describe or give a snap shot of the present state of affairs in both the economy
and ecology. A refined version of this model might be able to provide a framework
for monitoring the effectiveness of policy initiatives, or might provide a means of
anticipating or evaluating the consequences of proposed policies. However useful
this model, it would be a mistake to believe that even the best model could promise
that future economic activities will be ecologically sustainable. A natural capital
model only makes economic models accord with ecological models it makes
descriptions of economic activity line up with descriptions of natural relationships.
The issue of whether or not economic models are in accord with ecological models
is very different than the issue of whether or not economic activities are in accord
with ecological realities. Making economic activities accord with ecological realities will probably be the work of politicians and policy makers rather than model
builders. Insofar as a natural capital model is to be useful rather than merely interesting, the primary objective of the model is to provide a groundwork of scientific
consensus between economics and ecology so that consensus about political and
policy actions and objectives might follow.
On these terms, a natural capital model would be a scientifically mandated
means of establishing which environmental issues need to be addressed and a
means of evaluating how adequately they are addressed. But the further belief that
a natural capital model might be able to compel political consensus is based on a
confusion. Scientific models describe the way the world is while political agendas
and policy are descriptions of the way the world ought to be. In logic, the inability
to derive claims about what ought or should be the case directly from statements
about what is the case is often called the is-ought dichotomy. One implication of
the dichotomy is that scientific models which describe states of affairs, and might
even predict future states of affairs, are not by themselves imperatives for action. In
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other words, it is not possible to leverage prescriptions for action off descriptions of
states of affairs, because there is no necessary or required connection between the
two different kinds of claims or statements. This is not to deny that people often act
on the basis of scientific models and evidence, but they do this only when a belief
about interests, needs, wants or desires has been added to the scientific description.
In the case of a natural capital model, an ideal model might encapsulate much of
the descriptive content of ecology and economics and provide a robust measure of
the present state of the ecology and the economy. But, from that description alone
no political or policy action necessarily follows.
This may seem to pose no problem because a natural capital model is intended
to provide an objective or value-neutral measure or indicator of economic and environmental well-being. The apparent objectivity or value-neutrality of the model
is what would make it persuasive in a world of political disagreement. But, this is a
problem because a natural capital model will only compel action if there is already
agreement that economic activities are at odds with ecological realities, because
a pure description by itself will not and cannot compel action. Thus, deploying
natural capital models at the political and policy level shall require consensus
that environmental problems are beyond the reach of conventional economic and
ecological sciences. Paradoxically, it is this very consensus that the idea of natural
capital is supposed to create in the first place. Perhaps then, the problems that
continue to beset the formation a practical natural capital model may have less to
do with the scientific issues inherent in developing the model and more to do with
the problems of creating a moral and political consensus about the nature and extent
of environmental problems. In short, scientific expertise cannot act as a surrogate
for political will and moral commitment.
Notes
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12 This may not be a new or unique problem. The French philosopher Bruno Latour has suggested
that from the inception of modern science, science practitioners promised a demarcation between the
natural world and the human world within the scientific enterprise. Latour suggests that science has
always failed to maintain this demarcation. See Latour, 1991.
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