Neo-Malthusian: non-renewable resources are finite and therefore exhaustible, population growth will reduce resources
Malthus
l 1798: “Essay on the Principle of Population”
l belief: a finite optimum population size in relation to food supply. And that any increase in population beyond this point would lead to decline in the standard of living = resource is limited as population increases
à population increases at a geometric/exponential rate
àfood supply increases at a arithmetic rate
Paul Enrlich: relationship between population size and resource consumption
Belief: limited resources keep populations in check and reduce economic growth à population growth should be controlled
l 1968: published “The Population Bomb” = famine due to lack of resources
l Even it happens, there will be new ways to find new resources/new ways of getting existing resources more cheaply
l did not happen because 1970’s Green Revolution (genetically modified food/ higher yields)
Club of Rome – headed by Dennis Meadows
l 1972: published “The Limits of Growth” = combination of population growth and finite natural resources creates mass misery
Anti-Malthusians:
Julian Simon (used statistics and historical examples to support his ideas)
l 1996: “The Ultimate Resource 2” = true measure of scarcity is not the physical quantity of a resource but price EX: petrol prices rise if it becomes scarcer
à the price of natural resources is decreasing, which shows resources are abundant
l 1996: only living standards would improve
Harold Hotelling
l 1931: real price of oil and resources would rise as the amount left on earth decreased
àHOWEVER the price of petrol has declined steadily in the long-term
l because of a combination of new discoveries, recycling, new technology
l the prices of natural resources have declined over time, indicating greater abundance
1980: A bet between Julian Simon and Paul Enrlich
Julian Simon’s view: the prices of natural resources would become cheaper rather than more expensive over the next years
l if natural resources were to become scarcer, the prices should rise
Julian Simon won the bet
l 1980-1990: the prices of all five minerals fell
Bjorn Lomborg
l 2001: “The Sceptical Environmentalist” = the world’s environmental situation and resource use are getting worse
l Selective and misleading use of scientific data to influence decisions about the allocation of limited resources à his idea is controversial
l The cost of dealing with global warming is so high and benefits so limited
à more effective spend directly to improve the standard of living in LEDCs.
Boserup (1901-1999)
l Belief: people know ways to increase food production because of the resources of knowledge and technology EX: fish farming, growing crops in greehouses, high-yield varieties of plants etc