“Throughput, Land Value Taxation, Green taxes,

4 capitals, and Common Assets: A Unified Field

Theory” USSEE Conference 2007

Gary Flomenhoft, Fellow

Gund Institute

June 26, 2007

Ecological-EconomicsReintegrating economics

•Scale•Distribution•Allocation

Generally ignoresDistribution, property rights (except env)

Georgist Economics Economic JusticeCollect Ricardian land rent Distribute to citizens through government(property rights)allocation secondary, scale ignored

Common Assets EconomicsAnti-privatization movement

Propertize the commons Distribute to citizens directly-dividends(property rights)Scale, allocation secondary

Ecological EconomicsTwo streams:

Stabilize Throughput/

steady-state economy

Scale. Daly-(Less Stuff)

New Indicators,Costanza

Distribution, Allocation

(Less Stuff-more fun)

Intro to Ecological Economics

Throughput-closed system2nd law-neo-classicals, Georgists ignore

ECONOMY

earth

Stabilize Throughput in a Full World

Source:

Ecological Economics Principles & Applications,

Farley and Daly

Human built capital

Natural capital

Ecological Economists Multhusians: Question growth.

Georgists usually reject Malthus: Pro-growthbutIncomplete reading of George (What may someday be)

On Malthus

Common Assets:

Not addressed?

Green Budget Reform

Subsidy reformGreen Taxes/

Cap-Trade

Common Assets

Green Tax = Throughput Tax

ECONOMY

LAND USE

DEPLETION POLLUTION

Sources Sites/habitat SinksCommon assets Georgist land taxes pollution taxes(Pigou)PES land trusts, parks cap/trade

spectrum fees

VT Common Assets TOTAL

MINERALS-10% $7,300,000

PUBLIC FORESTS $62,237WATER -1c/gallon) $87,831,410

LAND-1% $149,283,117

SPECTRUM-10% $161,965,394

SPECULATION-.25% $268,891,964

MONEY-1% $35,744,500

CO2 8MMTe @$30/ton $240,000,000

INTERNET ? ???????????

TOTAL $951,078,622Vermont pop 2004 621,394Dividend each $1531

REAL OWNERSHIP SOCIETY

New Indicators

New Indicators

SUSTAINABLE HUMAN WELL-BEING:“NATURAL COMMONS, SOCIAL COMMONS, BUILT CAPITAL, HUMAN CAPABILITIES”

HUMAN CAPABILITIESHealth, education, talent, knowledge, welfare, wealth, income

SOCIAL COMMONSTrust, communication,Mutual support, democracy, human rights Built social capital: hospitals, schools, internet, libraries, roads

NATURAL COMMONSResources, ecosystem goods and services, clean environmental, habitat, air, water, land sinks

BUILT PRIVATE CAPITALBusiness, technology,Commerce, buildings, houses, Infrastructure(see above)

Georgist site value/Ricardian rent=

Sustainable Human Wellbeing and Georgist Utopia

Public investment

BI/non-labor income