Evolution of Evolution of Ego'n’EmpathyEgo'n’Empathy

Progress in Forming theProgress in Forming the

Centerpiece for Ecological Economic Centerpiece for Ecological Economic TheoryTheory

William M. HayesWilliam M. Hayesaa and and

Gary D. LynneGary D. Lynnebb

http://go.unl.edu/gxn http://go.unl.edu/gxn

Contact and Related InformationContact and Related Information Lynne website: Lynne website: http://agecon.unl.edu/lynne http://agecon.unl.edu/lynne

Fable of Fable of Ego’n’EmpathyEgo’n’Empathy, contact Hayes website: , contact Hayes website: http://agecon-cpanel.unl.edu/lynne/socialcapital/fableegonempathyhttp://agecon-cpanel.unl.edu/lynne/socialcapital/fableegonempathy.pdf .pdf

Citations of Hayes and Lynne (2004) on Citations of Hayes and Lynne (2004) on Ego’n’EmpathyEgo’n’Empathy hypothesis hypothesis: : http://agecon-http://agecon-cpanel.unl.edu/lynne/ecolecon/citesofhayeslynne2004.pdf cpanel.unl.edu/lynne/ecolecon/citesofhayeslynne2004.pdf

Citations of papers on dual interest theory and Citations of papers on dual interest theory and the metaeconomics approach: the metaeconomics approach: http://agecon-http://agecon-cpanel.unl.edu/lynne/resume/citesofgdlynne19892010.pdf cpanel.unl.edu/lynne/resume/citesofgdlynne19892010.pdf

Metaeconomics website: Metaeconomics website: http://metaeconomics.unl.edu/http://metaeconomics.unl.edu/

Distance Ed course that uses the framework: Distance Ed course that uses the framework: http://agecon-cpanel.unl.edu/lynne/ecolecon/ecoleconsyllabus.htm http://agecon-cpanel.unl.edu/lynne/ecolecon/ecoleconsyllabus.htm

FURTHERING FURTHERING ECOLOGICAL ECONOMICS ECOLOGICAL ECONOMICS WITH PHILOSOPHY, SCIENCE WITH PHILOSOPHY, SCIENCE AND A WORLDVIEWAND A WORLDVIEW

PreamblePreamble

PhilosophyPhilosophy

Ego’n’EmpathyEgo’n’Empathy

The six elements of a worldview:The six elements of a worldview:1. An Explanation of the world1. An Explanation of the world2. A Futurology: Where are we 2. A Futurology: Where are we heading?heading?3. Etiology: Worldview’s building 3. Etiology: Worldview’s building blocks, it’s origins & constructionblocks, it’s origins & construction4. Values: What should we do?4. Values: What should we do?5. Methodology or Action Theory: How 5. Methodology or Action Theory: How to attain goals?to attain goals?6. Epistemology: What’s true & false? 6. Epistemology: What’s true & false? (Apostel et al. 1994)(Apostel et al. 1994)

WELTANSCHAUUNGWELTANSCHAUUNGComprehensive worldview for cognitive and Comprehensive worldview for cognitive and interdisciplinary orientation with shared aiminterdisciplinary orientation with shared aim

Futurology: Vision of the Social Spheres Futurology: Vision of the Social Spheres Explains the World in 4-fields with 4-forcesExplains the World in 4-fields with 4-forces

Etiology: Origins of the social elementsEtiology: Origins of the social elementsValues: Towards sustainable developmentValues: Towards sustainable development

EGO‘N’EMPATHYEGO‘N’EMPATHY(AND EMPIRICAL TESTS OF E N’E)(AND EMPIRICAL TESTS OF E N’E)

ScienceScience

Epistemology: Old and New EconomicsEpistemology: Old and New Economics

“ “Researchers await a new theorist Researchers await a new theorist who will assimilate the old theories who will assimilate the old theories and present an integrated theory and present an integrated theory incorporating previous concepts and incorporating previous concepts and propositions.” propositions.”

(Lester, 1995, p. 161)(Lester, 1995, p. 161)

Methodology: The Metaeconomic ApproachMethodology: The Metaeconomic Approach

Metaeconomics frames the economic Metaeconomics frames the economic question in such a way as to make question in such a way as to make the the community explicitcommunity explicit, as , as represented in the the moral represented in the the moral dimension, the shared unity with dimension, the shared unity with cause, being in sympathy with a cause, being in sympathy with a shared ethicshared ethic

““Meta” means “to go beyond, Meta” means “to go beyond, transcend”transcend”

Methodology: Beyond Neoclassical Methodology: Beyond Neoclassical Economics Economics

“…“…neoclassical economics is …subject of neoclassical economics is …subject of constant criticisms from within and from constant criticisms from within and from without…. Notion that one might somehow without…. Notion that one might somehow abandon it, in favor of one or another abandon it, in favor of one or another alternative, founders on the enormity of the alternative, founders on the enormity of the prospective cognitive loss… had better accept, prospective cognitive loss… had better accept, therefore, that for now and the forseeable therefore, that for now and the forseeable future, neoclassical economics is the core of future, neoclassical economics is the core of the subject. Instead of looking for an alternative the subject. Instead of looking for an alternative theory to replace it, we should try to imagine theory to replace it, we should try to imagine an economic theory an economic theory that might transcend its that might transcend its limitationslimitations.” (Leijonhufvud, 2004, p. 5).” (Leijonhufvud, 2004, p. 5)

Epistemology: Hypothesis for new Epistemology: Hypothesis for new Economic TheoryEconomic Theory

“ “If empirical testing results in failure If empirical testing results in failure to reject the null hypothesis of ‘no to reject the null hypothesis of ‘no empathic, other-interest at work’ and empathic, other-interest at work’ and ‘no lack of substitution possibilities’, ‘no lack of substitution possibilities’, we are back to the standard we are back to the standard neoclassical economic model.” neoclassical economic model.” (Hayes & Lynne, 2004)(Hayes & Lynne, 2004)

Epistemology and Values: Key Aspect, Epistemology and Values: Key Aspect, EmpathyEmpathy

Meta-economics has Meta-economics has resolved a role resolved a role for empathy (and sympathy and thus for empathy (and sympathy and thus ethics, the moral dimension) in ego’s ethics, the moral dimension) in ego’s economic choiceeconomic choice

Still unresolved: Whether empathy-Still unresolved: Whether empathy-sympathy leads to the pursuit of a sympathy leads to the pursuit of a set of outcomes in their own right set of outcomes in their own right and/or does it and/or does it serve only to temper serve only to temper ego’s economic choiceego’s economic choice

Action Theory: Dual InterestAction Theory: Dual Interest Dual interest theory was inspired by the Dual interest theory was inspired by the

work of Ragnar Frisch on joint and work of Ragnar Frisch on joint and interdependent production, joint costsinterdependent production, joint costs

Frisch represents same as two overlapping Frisch represents same as two overlapping isoquants in the same diagram, e.g. in the isoquants in the same diagram, e.g. in the classic wool-mutton problem (Frisch, 1965, classic wool-mutton problem (Frisch, 1965, Chps. 14-15)Chps. 14-15)

Lynne (1995, 1998, 1999, 2006ab) Lynne (1995, 1998, 1999, 2006ab) proposed representing the I&We, proposed representing the I&We, Self&Other-interest, Economy&Community Self&Other-interest, Economy&Community with two overlapping indifference curveswith two overlapping indifference curves

Action Theory: Metaeconomics 101Action Theory: Metaeconomics 101

Ro

0

C

A

Public (shared) use (R2)

Privateuse (R1)

G

M

B

Ro

70:30

Alternative own-interest 0Z paths(each with self-sacrifice, i.e. altruism, in both domains of interest)

50:50

90:10

30:70

IG1

IG2

IG3

IM1IM2

IM3

Self-interest

Other-interest

Own-interest

Action Theory: Meta-interestAction Theory: Meta-interest

Ro

B'

Ro

Selfless: Mainly other(shared)-interest (IM) ...Poetry!

Selfish: Mainly self-interest (IG) ...Pushpins!

0

Z

AB

C

R'

R'

Roo

Roo

Maximizeself-interest

Maximizeother-interest

Satisfactory/bestown -interest: Could be resolving incommensurables

Self-sacrifice (altruism) in both domains of intereston the own-interest path

IS2

IS3

IS1

Metainterests

Selfish

Selfless

Meta-interest

Applications and TestsApplications and Tests

3.1 Greed and the Financial Eco-3.1 Greed and the Financial Eco-systemsystem

3.2 Greed and the Food/Fiber 3.2 Greed and the Food/Fiber Production SystemProduction System

3.3 Greed and Conservation 3.3 Greed and Conservation (including Recycling) Behavior(including Recycling) Behavior

Recent* Conservation TestsRecent* Conservation Tests

Bishop, C.P., Shumway, C.R., Wandschneider, Bishop, C.P., Shumway, C.R., Wandschneider, P.R. 2010. Agent heterogeneity in adoption of P.R. 2010. Agent heterogeneity in adoption of anaerobic digestion technology: integrating anaerobic digestion technology: integrating economic, diffusion, and behavioral innovation economic, diffusion, and behavioral innovation theories. theories. Land EconomicsLand Economics 86, 585-608.86, 585-608.

Chouinard, H.H., T. Paterson, P.R. Chouinard, H.H., T. Paterson, P.R. Wandschneider, and A.M. Ohler. 2008. “Will Wandschneider, and A.M. Ohler. 2008. “Will farmers trade profits for stewardship? farmers trade profits for stewardship? Heterogeneous motivations for farm practice Heterogeneous motivations for farm practice selection.” Land Economics 84, 66-82.selection.” Land Economics 84, 66-82.

..

Recent…Recent…

Sautter, J., Ovchinnikova, N., Kruse, C., Sautter, J., Ovchinnikova, N., Kruse, C., and Lynne, G. 2011. Farmers’ decisions and Lynne, G. 2011. Farmers’ decisions regarding carbon sequestration: A regarding carbon sequestration: A metaeconomic view. Society and Natural metaeconomic view. Society and Natural Resources: An International JournalResources: An International Journal 1521-1521-07230723, , 24, 133-147. 24, 133-147.

Sheeder, R.J., Lynne, G.D. (in press). Sheeder, R.J., Lynne, G.D. (in press). Empathy conditioned conservation: Empathy conditioned conservation: ‘walking-in-the-shoes-of-others’ as a ‘walking-in-the-shoes-of-others’ as a conservation farmer.” Land Economics. conservation farmer.” Land Economics.

TABLE 2 LOGISTIC ESTIMATION OF NO-TILL ADOPTION DECISION (EMPATHY OTHER-INTEREST PROXY)

Variable Role of Capital

Adding Tempered Self

Adding Habitual Tendency

Adding Selfism Reinforced Control

Constant 1.005 -0.730 -1.823c -1.078 Income 0.006a 0.005a 0.004a 0.004a Slope -0.033 0.016 0.038 0.008 Selfism X Empathy

0.070a 0.066a 0.090a

Habit

0.383a 0.371a Selfism X Farm Control

-0.089a

Selfism X Other Control

0.013 Selfism X Nature Control

0.002

-2 Log Likelihood 442.134 422.482 384.954 374.016

χ2 (Block) 31.474a 19.651a 37.529a 10.938b χ2 (Model) 31.474a 51.125a 88.653a 99.592a

Nagelkerke R2 .100 .159 .266 .295

Percentage Correct: 0 0 2.2 23.1 28.6

1 100 99.8 96.8 95.8 Overall 81.7 81.9 83.3 83.5

Df 2 3 4 7

Note: a p<.01, b p<.02, c p<.05

TABLE 3 LOGISTIC ESTIMATION OF NO-TILL ADOPTION DECISION (SYMPATHY OTHER-INTEREST PROXY)

Variable Role of Capital

Adding Tempered Self

Adding Habitual Tendency

Adding Selfism Reinforced Control

Constant 1.005 0.122 -1.157 -0.787 Income 0.006a 0.006a 0.004a 0.004a Slope -0.033 -0.012 0.004 -0.022 Selfism X Sympathy

0.037b 0.041b 0.043c

Habit

0.401a 0.391a Selfism X Farm Control

-0.082a

Selfism X Others Control

0.035 Selfism X Nature Control

0.017

-2 Log Likelihood 442.134 435.479 393.881 384.343

χ2 (Block) 31.474a 6.655b 41.598a 9.538c χ2 (Model) 31.474a 38.129a 79.727a 89.624a

Nagelkerke R2 .100 .120 .241 .267

Percentage Correct: 0 0 0 16.5 22.0

1 100 100 96.1 96.8 Overall 81.7 81.7 81.5 83.1

Df 2 3 4 7

Note: a p<.01, b p<.02, c p<.05

TABLE 4 LOGISTIC ESTIMATION OF NO-TILL ADOPTION DECISION (EMPATHY/OTHERS OTHER-INTEREST PROXY)

Variable Role of Capital

Adding Tempered Self

Adding Habitual Tendency

Adding Selfism Reinforced Control

Constant 1.005 -0.734 -1.894c -1.176 Income 0.006a 0.005a 0.004a 0.004a Slope -0.033 0.006 0.020 -0.022 Selfism X Water User Empathy

0.013 0.014 0.016

Selfism X Farm Entity Empathy

0.090a 0.084a 0.093a Selfism X Family Empathy

-0.021 -0.016 -0.010

Habit

0.381a 0.374a Selfism X Farm Control

-0.094a

Selfism X Other Control

0.022 Selfism X Nature Control

0.009

-2 Log Likelihood 442.134 413.540 376.536 365.692

χ2 (Block) 31.474a 28.593a 37.005a 10.844b χ2 (Model) 31.474a 60.067a 97.072a 107.916a

Nagelkerke R2 .100 .185 .289 .317

Percentage Correct: 0 0 6.6 22.0 27.5

1 100 99.3 96.3 96.3 Overall 81.7 82.3 82.7 83.7

Df 2 5 6 9 Note: a p<.01, b p<.02, c p<.05

Policy and Institution Building for “Nudging” a Policy and Institution Building for “Nudging” a Green Economy: Green Economy: EmpathyEmpathy as Key as Key

Empirical results of this study (Empirical results of this study (and past 2-decades of studiesand past 2-decades of studies) ) confirm the Bromley (2006) contention that we need to confirm the Bromley (2006) contention that we need to move beyond welfare (and neoclassical, generally) move beyond welfare (and neoclassical, generally) economics based policy, the latter focusing attention only on economics based policy, the latter focusing attention only on maximizing the sum of individual outcomes, to an empathy maximizing the sum of individual outcomes, to an empathy influenced set of both individual and jointly shared best influenced set of both individual and jointly shared best outcomesoutcomes

Empirical results confirm the need to ask Empirical results confirm the need to ask those on every side those on every side of the table to temper their choices with empathy-sympathy, of the table to temper their choices with empathy-sympathy, joining in common causejoining in common cause, evolving a new set of shared, , evolving a new set of shared, pragmatic, sufficient reasons represented in evolving new pragmatic, sufficient reasons represented in evolving new shared interests in a green economy, sustainable system. shared interests in a green economy, sustainable system.

Evolution of empathy based, shared interests is largely what Evolution of empathy based, shared interests is largely what the policy (and institution building) process is all about! the policy (and institution building) process is all about!

deWaal(2009) and Rifkin (2009) deWaal(2009) and Rifkin (2009)

““Greed is out, empathy is in (deWaal, p. ix)”Greed is out, empathy is in (deWaal, p. ix)” ““The underlying dialectic of human history is The underlying dialectic of human history is

the continuous feedback loop between the continuous feedback loop between expanding empathy and increasing entropy expanding empathy and increasing entropy (Rifkin, p. 26)… (history of) dialectical (Rifkin, p. 26)… (history of) dialectical feedback between extended empathy and feedback between extended empathy and greater entropy (Rifkin, p. 40)…(this) dialectic greater entropy (Rifkin, p. 40)…(this) dialectic of history … played itself out (Rifkin, p. 494)”of history … played itself out (Rifkin, p. 494)”

Empathy is the key in bringing about the Empathy is the key in bringing about the synthesis on the green synthesis on the green path 0Z path 0Z to to sustainabilitysustainability

Values: the Moral Zeitgeist (“path 0Z”)Values: the Moral Zeitgeist (“path 0Z”)

““How swiftly the Zeitgeist changes – and it moves in How swiftly the Zeitgeist changes – and it moves in parallel, on a broad front, throughout the educated world. parallel, on a broad front, throughout the educated world. Where, then, have these concerted and steady changes Where, then, have these concerted and steady changes in social consciousness come from? The onus is not on in social consciousness come from? The onus is not on me to answer. For my purposes it is sufficient that they me to answer. For my purposes it is sufficient that they certainly have not come from religion. If forced to certainly have not come from religion. If forced to advance a theory, I would approach it along the following advance a theory, I would approach it along the following lines. We need to explain lines. We need to explain whywhy the changing moral the changing moral Zeitgeist is Zeitgeist is so widely synchronized so widely synchronized across large across large numbers of people; and we need to explain its numbers of people; and we need to explain its relatively relatively consistent direction.” consistent direction.” (N: answer = empathy)

Richard Dawkins: Richard Dawkins: The God Delusion The God Delusion (2006)(2006)

ZeitgeistZeitgeist: : Ego Ego as as World Spirit World Spirit with with EmpathyEmpathy as as World SoulWorld Soul

A worldview moving towards a social A worldview moving towards a social global consciousness about Empathyglobal consciousness about Empathy

From From Homo economicus Homo economicus forward towards forward towards Homo ego:empathicusHomo ego:empathicus with with metaeconomicsmetaeconomics

From a hubristic Ego civilization forward From a hubristic Ego civilization forward towards the Ego-Empathic civilizationtowards the Ego-Empathic civilization

From critical human problems forward From critical human problems forward towards possible social solutions with towards possible social solutions with Homo ego:empathicusHomo ego:empathicus..

VALUE

Meta-interest

“But the greatest satisfaction was when the two Pegasus’ had free rein and freedom to fly to the higher plane where everyone could impartially observe Pangaia below.” (from The Fable of Ego’n’Empathy: See http://agecon-cpanel.unl.edu/lynne/ecolecon/fableegonempathy.pdf )