by Graeme » Wed 02 Apr 2014, 20:14:58
I'd like to review briefly what a steady state economy means according to
wiki.
$this->bbcode_second_pass_quote('', 'A') steady state economy is an economy of relatively stable size. It features stable population and stable consumption that remain at or below carrying capacity. The term typically refers to a national economy, but it can also be applied to the economic system of a city, a region, or the entire planet. Note that Robert Solow and Trevor Swan applied the term steady state a bit differently in their economic growth model. Their steady state occurs when investment equals depreciation, and the economy reaches equilibrium, which may occur during a period of growth.
The steady state economy is an entirely physical concept. Any non-physical components of an economy (e.g., knowledge) can grow indefinitely. But the physical components (e.g. supplies of natural resources, human populations, and stocks of human-built capital) are constrained and endogenously given. An economy could reach a steady state after a period of growth or after a period of downsizing or degrowth. The objective is to establish it at a sustainable scale that does not exceed ecological limits.
Economists use gross domestic product or GDP to measure the size of an economy in dollars or some other monetary unit. Real GDP – that is, GDP adjusted for inflation – in a steady state economy remains reasonably stable, neither growing nor contracting from year to year. Herman Daly, one of the founders of the field of ecological economics and a critic of neoclassical economics,[1] defines a steady state economy as
...an economy with constant stocks of people and artifacts, maintained at some desired, sufficient levels by low rates of maintenance "throughput", that is, by the lowest feasible flows of matter and energy from the first stage of production to the last stage of consumption."[2]
A steady state economy, therefore, aims for stable or mildly fluctuating levels in population and consumption of energy and materials. Birth rates equal death rates, and saving/investment equals depreciation.
I guess as long as NZ is connected to the global economy, we can never achieve a steady state. Our natural resources will be consumed not only by NZers but those overseas willing to buy our products, oil and gas in particular. Our National government is unlikely to change this policy of offering o/g leases to foreign nationals unless all of them lose interest or until the last drop is sucked out of the ground. Even our opposition Labour party wants to sell oil too but they view the governments current policy as a "fire sale".
Labour pummels oil offer$this->bbcode_second_pass_quote('', '&')quot;But we don't expect to see all that area, or even most of it, go to permits," Energy Minister Simon Bridges said in Wellington yesterday.
Last year just 13.5 per cent of the total area offered was actually awarded for exploration permits and the areas likely to be explored would be a "pinprick".
Bridges said there was "good momentum" in the sector, with "strong continued interest in New Zealand" from overseas companies from Norway, and both the United States and Canada.
"We have had unprecedented exploration recently," he said.
"We have only scratched the surface and we can have more taxes and pay for more schools and get higher-paying jobs."
But Labour leader David Cunliffe said the Government was holding a "fire sale" on exploration permits.
"Labour is not opposed in principle to offshore oil exploration but we are not satisfied with the environmental standards in place.
New Zealand needed world best practice standards.
"And we also need full liability and clean-up cover and to make better use of the revenues from that oil and till we have that fixed we should not have a fire sale on exploration permits," Cunliffe said.