Earthsky

Private: Economics in the 21st century

12-08-2005 - Human World

_DB:_ This is Earth and Sky, speaking with Nobel prize winning economist “Kenneth J. Arrow”:interviews.php?id=42983 of Stanford.

_JB:_ Arrow told us that some 21st century economists are beginning to see a need to re-frame some classic economic issues. For example, he said, there’s the need to look forward.

_Kenneth Arrow:_ Another thing is what I call the forward-looking thing, where what you do today, may not be so serious today, but it affects tomorrow. And of course, the typical situation is using up fossil resources, oil and coal, degradation of farmland. . .

_DB:_ Those things are profitable today, he said, but don’t take into account the fact that in the future there are going to be some scarcity problems.

_JB:_ Arrow called this a dynamic effect – an effect over time – that some 21st century economists are taking into account.

_Kenneth Arrow:_ One more specific thing would be what they call “ecosystem services”:quotes.php?id=44514 If you have a forest, not only do you have wood, but it also tends to control the flow of water. When you start deforesting, you start to get erosion, you start to get floods, becaue the forest actis like a big xsponge. These things are very indirect. You think of forests, you think of the wood. And of course there are a lot of subtle things. Of c ourse, the forest is a habitat for many species, and so forth. And those are just a few topics that are rather hot on the agenda.

_JB:_ That’s today’s show. For “more”:interviews.php?id=42983 come to earthsky.org. We’re Block and Byrd for Earth and Sky.

Read the complete transcript of our “interview”:interviews.php?id=42983 with Kenneth Arrow.

Arrow and other prominent economists authored a paper entitled “Are We Consuming Too Much?”:http://fsi.stanford.edu/publications/20397/ published in 2004 by the Journal of Economic Perspectives

Our thanks to:
“Kenneth Arrow “:http://cepa.newschool.edu/het/profiles/arrow.htm
Department of Economics
Stanford University
1972 Nobel Laureate in Economics

Written by EarthSky

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