Ecological Economics 55 (2005) 309 – 320
www.elsevier.com/locate/ecolecon
COMMENTARY
Prices and quantities: Unsustainable consumption and the
global economyB
Juliet B. Schor *
Boston College, Department of Sociology, McGuinn 519, 140 Commonwealth Avenue, Chestnut Hill, MA 02467, United States
Received 9 December 2003; received in revised form 14 June 2005; accepted 11 July 2005
Available online 22 September 2005
Abstract
The ecological unsustainability of current consumption patterns is now well documented. One aspect of this problem which
has not been sufficiently addressed is the growth of bexcess consumptionQ driven by falling goods prices. The index of
department store prices have fallen substantially since the early 1990s, in large part because global capital mobility and excess
global labor supply has allowed firms to depress wages and avoid paying environmental costs. Consumers have responded by
purchasing increasing numbers of these artificially cheap goods. The example of apparel is discussed in some detail, and data
from other goods categories are presented. These trends suggest that achieving sustainable consumption in the US is not only a
technical issue but will also involve fundamental changes in the global political economy to eliminate the artificially low prices
of imported goods.
D 2005 Elsevier B.V. All rights reserved.
Keywords: Sustainable consumption; Global economy; Apparel; Consumer behavior
1. Introduction: the problem of unsustainable
ecological footprint analysis, the world passed the
consumption
point of sustainability in 1978 (Wackernagel et al.,
2002). Direct measures of the state of global planetary
The ecological unsustainability of current con-
resources, such as the comprehensive ecosystem
sumption patterns is now well documented (Vitousek
assessment done by WRI, the World Bank, the
et al., 1986, 1997; Meadows et al., 1992; Worldwide
UNDP and the UNEP find that ecosystems are in
Fund for Nature, 1999; Wilson, 2002). According to
decline virtually everywhere (World Resources Insti-
tute et al., 2000). Even economists, a group that has
traditionally been dismissive of scientific assessments
of declining natural capital, have begun to recognize
B This article is a revised version of the author’s keynote to the US
that the current scale of consumption is not sustain-
Society for Ecological Economics in Saratoga, NY, May 2003.
able. A joint project by Stanford ecologists and some
* Tel.: +1 617 552 4056; fax: +1 617 552 4283.
E-mail address: juliet.schor@bc.edu.
of
the
world’s
most
distinguished
economists
0921-8009/$ - see front matter D 2005 Elsevier B.V. All rights reserved.
doi:10.1016/j.ecolecon.2005.07.030

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J.B. Schor / Ecological Economics 55 (2005) 309–320
reported, in a recent paper, that the answer to the
ing—never before have the technological means for
question bAre we consuming too much?Q might well
achieving sustainability been more promising, yet
be yes (Arrow et al., 2004).
actual rates of ecological degradation are at record
Much of the literature on sustainable consump-
levels.
tion has focused on technological solutions. Cur-
A central cause of that degradation is the growth of
rently popular approaches include notions such as
US private consumption. As is widely recognized, US
eco-efficiency, Factor 10, the Natural Step, the
private consumption currently entails a globally dis-
hydrogen economy and bio-mimicry (McDonough
proportionate use of resources, as measured by eco-
and
Braungaurt,
2002;
Beynus,
2002;
Rifkin,
logical footprint, measures of material weight, and
2002; Hawken et al., 1999). Some of the appeal
numerous other indices and estimates (Wackernagel,
of technological approaches is that they represent
1999; Wernick, 1997). The 1990s and early 2000s
the economist’s bfree lunch.Q Advocates of techno-
have been a period of rapid consumption growth for
logical solutions argue that more intelligent design
the average household, as consumption outpaced
and
technological
innovation
can
dramatically
income growth, and savings rates declined (Schor,
reduce, or even stop the depletion of ecological
1998). Between 1993 and 2004, real personal con-
resources, as well as eliminate toxic chemicals and
sumption expenditures per capita rose from $19,593
ecosystem disruption. The popularity of technolo-
to $25,973 (2000 dollars), or 33% (CEA, 2005:
gical solutions is also attributable to the fact that
247, Table B-31).
they are apolitical, and do not challenge macro-
In addition, as is now well documented, the
structures of production and consumption. In par-
growth in average consumption conceals growing
ticular, they fail to address increases in the scale
disparities across the distribution, as inequality of
of production and consumption, sometimes even
income and wealth increased over this period
arguing that such increases are not unsustainable,
(Wolff, 2000). The top income quintile engaged
if enough natural-capital-saving technical change
in a round of what I have elsewhere termed
occurs.
bcompetitive consumption,Q or what Robert Frank
By contrast, I argue that a purely technological
has called bluxury feverQ (Schor, 1998; Frank,
approach
will
fail,
because
the
incentives
to
1999). It seems likely that the shift to more
increase the scale of consumption are too powerful.
unequal distributions of income and wealth has
The experience of the last few decades is that with
had its own environmental impact, in addition to
many consumer goods and practices, and especially
the impact of rising income. Salient consumption
the
crucial
case
of
fossil-fuel
consumption,
practices
with
significant
environmental
impact
increases in scale have outpaced technological
have included upscaling to more luxurious versions
improvements. The example of vehicles is well
of products, increasing product size, especially for
known. The effect of cleaner cars has been out-
vehicles and housing, acquisition of new products,
weighed by the acquisition of more vehicles, more
and acquisition of multiple versions of items con-
miles driven per vehicle, and larger vehicles. Simi-
sumers already owned (televisions, automobiles,
larly, improvements in residential energy technolo-
computers, apparel, etc.).
gies have been counter-balanced by larger homes
Indeed, this recent round of consumption has been
and more energy-using appliances, so that US resi-
particularly significant in its environmental impact.
dential energy use has not declined, despite sub-
The shift to larger size vehicles, homes, refrigerators,
stantial improvements in efficiency. Indeed, total
televisions, and other goods has increased materials
residential energy use continues to increase (United
and energy use. The prevalence of multiple appli-
States Office of Energy Efficiency and Renewable
ances is also materials and energy intensive. Exam-
Energy, available at http://www.intensityindicators.
ples include cooling appliances (refrigerators and
pnl.gov/residential.html). These examples suggest
freezers), computers, televisions, and cellular tele-
that technological change is a necessary, but not
phones. Environmentally important products that
sufficient
condition
for
achieving
sustainability.
are present in a growing number of households for
Indeed, the paradox of the current moment is strik-
the first time include jacuzzis, snowblowers, and

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J.B. Schor / Ecological Economics 55 (2005) 309–320
311
large lawnmowers. The increasing globalization of
versation about a neglected aspect of the literature
the world economy has also facilitated the consump-
on sustainable consumption.1
tion of virgin and exotic resources on a broader scale
The discussion below treats manufactured goods
than previously. Examples include travel to remote
and primary commodities separately. I term these two
areas, the trade in exotic pets, and the use of rare,
cases the bglobal sweatshopQ and the bcheap banana.Q
tropical hardwoods. (On exoticism in upscale con-
The former refers to the fact that wages in foreign
sumer practices, see Holt, 1998).
manufacturing are kept artificially low, and environ-
One aspect of recent consumer history that has
mental effects remain externalized as the US extends
not been sufficiently addressed is the growth of what
its domination of global markets and economies. One
I term bexcess consumption.Q This refers to addi-
piece of data indicative of this shift to low cost off-
tional consumption that is triggered by declines in
shore production in manufactured goods is the index
the prices of goods and commodities caused by the
of department store prices. Department stores are a
particular organization of the global political econ-
key retail outlet for imported manufactured goods, and
omy. Broadly, I intend the term excess consumption
as such, their prices provide a broad measure of the
to refer to the fact that the structure of global power,
costs of these goods to the American consumer. The
and in particular the dominant role of the United
department store price index compiled by the US
States, has artificially reduced prices for consumers
Department of Labor indicates that in all categories–
in the industrialized countries, and this in turn
soft goods, durable goods, and miscellaneous–prices
increases consumption demand both through substi-
have declined. Overall, the total store price index
tution effects and because real purchasing power is
declined from 542.9 in February 1993 to 494.3 in
greater. (It should be noted that the latter effect is
February 2005 (see Table 1). Durable goods prices
not necessarily a neo-classical one, but can rely on
declined most, from 457.6 to 381.0 over the same
an alternative consumption function, in which con-
period. Wal-Mart, which now holds a commanding
sumption is a constant fraction of real income. For
position in the department store sector, has been
an extensive discussion, and empirical testing of
important in reducing prices by squeezing suppliers
such models, see Marglin, 1984.) The concept of
and keeping domestic wages low.
excess consumption includes the idea that cheap
The second effect (the bcheap bananaQ) refers to a
prices have contributed to a more rapid cycle of
somewhat different process, operating in the markets
acquisition and discard in a number of consumer
for primary commodities. An exemplary historical
categories. Economists typically ignore such trends,
case is the US intervention to overthrow the popularly
assuming that they do not require special welfare
elected government of Jacobo Arbenz in Guatemala in
analysis. (The reasoning is that if consumers are
1954, and the resulting availability of cheap and
participating in a speeded-up cycle of acquisition
plentiful bananas in US supermarkets. Over time,
and discard, it must be because holding onto goods
the once luxurious tropical fruit became a lunchbox
longer yields less utility.) However, if the unrealistic
staple not only for affluent consumers but also for
and largely indefensible assumption of no inter-
many of modest means as well. Intriguingly, in the
dependent consumer preferences is dropped, the
late 1990s bananas again became the target of political
acceleration of the acquisition and discard cycle
maneuvering by the United States, as United Fruit, the
may be associated with minimal welfare gains, but
company most centrally involved in the 1954 coup,
significant environmental impact. In such a case, the
convinced the Clinton Administration to file a claim at
term excess consumption refers to the fact that a
market intervention that reduces the quantity of units
consumed will either maintain or raise welfare. Mea-
1 It should be noted that the term bexcess consumptionQ is not a
surement of the amount of excess consumption, and
normative one, and does not suggest that all consumers, especially
its precise environmental impact is beyond the scope
low-income consumers, consume btoo much.Q It is an analytic term,
and refers to consumption in the aggregate. There are important,
of this paper, and in any case would be a hypothe-
analogous arguments about the sub-optimality of the existing dis-
tical exercise relying on speculative counter-factuals.
tribution of income that hold that the ratio of consumption expen-
My purpose here is more modest: to begin a con-
ditures of high to low income consumers is too large.

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J.B. Schor / Ecological Economics 55 (2005) 309–320
Table 1
Trends in selected cosumer goods prices 1993–2005
Year
Department store inventoriesa
Apparelb
Toysb
Personal computers and
Televisionsb
Footwearb
New
All durable
peripheral equipmentb
vehiclesb
goodsb
Store total
Durable goods
(Feb) 1993
542.9
457.6
134.0
122.4
N/A
N/A
126.0
131.1
119.8
1994
545.8
463.1
133.2
122.9
N/A
N/A
126.6
135.7
123.1
1995
545.8
465.1
131.9
122.9
N/A
N/A
125.4
139.9
127.4
1996
548.3
467.3
132.2
125.3
N/A
65.7
126.5
142.8
129.1
1997
554.2
470.0
133.0
126.7
100.0
62.8
127.3
144.6
129.5
1998
552.3
462.4
133.0
122.6
91.3
60.0
127.9
143.6
127.9
1999
540.7
455.6
130.8
115.9
59.7
56.4
126.4
143.0
126.2
2000
537.7
444.9
130.4
107.1
45.1
51.9
123.9
142.2
125.1
2001
532.4
433.1
129.6
101.2
33.9
47.0
124.5
142.5
125.7
2002
516.6
415.5
124.7
98.9
23.8
42.0
121.3
140.4
122.5
2003
502.3
402.9
121.8
88.3
19.1
36.9
121.6
138.4
119.4
2004
491.9
388.6
120.0
85.6
16.0
31.4
118.8
137.5
115.0
(Feb) 2005
494.3
381.0
120.0
79.6
13.5
27.8
123.0
139.0
115.8
Sources: Consumer Price Indices, U.S. Department of Labor, Bureau of Labor Statistics, available at http://www.data.bls.gov.
a Department Store Inventory Price Index.
b Consumer Price Index- All Urban Consumers, U.S. City Average.
the WTO against European preferences for small
become active critics of the operation of the global
Caribbean banana farmers. The case brought the two
economy and the current rise of US imperial ambi-
sides to the brink of a trade war.
tions and the projection of US military power. This
On the face of it, the examples of the global sweat-
involves making alliances with the global justice
shop and the cheap banana appear rather far afield.
movement and a resurgent global peace effort. For
And of course, the global political economy is not
unless those movements become more powerful, the
what it was in 1954. The growing power of the
positive progress available from the technological side
Bretton Woods and other international institutions,
will be swamped by ongoing pressures for excess
the intensification of economic competition among
consumption of both resources and manufactured
nations, and other developments have added layers
goods.
of complexity. However, for our purposes there are
some key features of the post-WWII global political
economy which have endured, and which tie together
2. The global sweatshop—the case of apparel
the imperialist interventions of the early decades and
contemporary developments. That is, both the global
Among the trends which have made possible the
sweatshop and the cheap banana rely on the projection
substantial rise in US consumption has been the
of American power–economic, political and military–
growth of low-wage, foreign production in a variety
to reproduce a world of artificially cheap resources
of product categories—apparel, footwear, toys, com-
and commodities. These artificially low prices and
puters, software, tourist hotels, cars, consumer elec-
wages undermine fundamental principles of sustain-
tronics. These and many other commodities are
ability, and are the basis of the idea of excess con-
artificially cheap because the rules and workings of
sumption. If the market operated as a textbook case,
the global economy have depressed the price and
with small firms in competitive markets, no state, and
power of labor, often female, around the world.
no threat of military power to protect firms’ interests,
Consider the case of apparel. Apparel is priced far
both wages and prices would be higher, and consump-
too low to reflect its true economic and ecological
tion would be lower.
costs. It is now possible to buy clothing, long a high-
The proliferation of cheap resources and commod-
priced and valuable commodity, by the pound, for
ities also suggests a political point. Those who are
prices comparable to cheap agricultural products
committed to reconstructing the global ecology must
such as rice and beans. This is a historically unprece-

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J.B. Schor / Ecological Economics 55 (2005) 309–320
313
dented situation, perhaps best illustrated by the fact
directly affected, and wages have remained extremely
that apparel has historically been so valuable that used
low despite the growth in apparel production and
clothing has routinely served as an alternative local
hence labor demand throughout the region. In Ban-
currency (Lemire, in press).
gladesh, which by the end of 2001 had become the
A key element of low apparel prices is the shift to
fourth largest apparel exporting country to the US,
offshore production (see, for example, Rosen, 2002;
wages are as low as 7 to 8 cents/h for some tasks, with
Ross, 1997, 2004; Klein, 2000; NLC, 1998, 2001 on
a high of only about 17–18 cents/h (National Labor
labor conditions and apparel policy). This shift has
Committee, 2001). Chinese wages are somewhat
taken place over a long period, but in recent years, the
higher, but still very low. Wal-Mart, which controls
fraction of apparel that is imported has grown drama-
15% of the US market and is the world’s largest
tically. By 2002, in all but three apparel categories
clothing retailer, pays workers in Chinese factories
(men’s suits, dresses, and women’s swimwear),
as little as 13 cents/h, with the norm below 25
imports accounted for more than 80% of domestic
cents. High-priced designers also exploit cheap
consumption, and in 10 of the 16 remaining cate-
labor-rates for Ralph Lauren and Ellen Tracy are 14
gories, the share of imports exceeded 90% (U.S.
to 20 cents, Liz Claiborne 28 cents (National Labor
Census Bureau, Current Industrial Reports, 2003,
Committee, 1998). The crisis also had financial
Apparel, Table 5).
effects, reducing the price of Asian countries’ curren-
The conditions of female labor in offshore garment
cies, thereby making their imports even cheaper to US
production have been subject to widespread publicity,
consumers. Downward pressure on apparel prices has
and have been condemned as highly exploitative.
also been a result of the growth of imports from
What has been less noticed, however, is the impact
China. The end of quotas under the Multi-Fibre
of the Asian financial crisis of the late 1990s on
Agreement in January 2005 is expected to lead to a
wages, and the subsequent dynamics of apparel
dramatic increase in Chinese imports and is likely to
importation and consumption. The crisis itself was
further depress prices.
the product of a series of neo-liberal reforms imposed
In the United States, apparel prices began falling
by the US Treasury, through the International Mone-
after 1998, and have continued to fall since then (see
tary Fund, which led to a number of Asian economies
Table 1). The CPI index of apparel prices for urban
collapsing under the weight of excessive privatization
consumers has fallen from 134.0 in 1993 to 120.0 in
and de-control of capital. (For an insider’s view, see
2005. Fashionable, brand-new clothing can be had at
Stiglitz, 2002.) Income and wages throughout the
record low prices; there are cases of individual gar-
region plummeted in the years immediately succeed-
ments being sold on markdown at 99 cents in regular
ing the crisis. In Indonesia, which had been industria-
retail establishments. As one might expect from the
lizing rapidly, average GDP per person, measured in
decline of prices, data from the Census Bureau on the
Purchasing Power Parities, declined from $3971 in
quantity of units (or individual pieces of apparel)
1995, before the crisis, to $2830 in 2001, 6 years later,
imported indicate a sharp increase in recent years. In
a decline of 29%. In Malaysia, per capita GDP fell
1996, the United States imported 7.38 billion units; in
from $9572 to $7910, or 17%. In Thailand, the
2002, imports totaled 13.51 billion units, a rise of
decline was from $7742 to $6230, or 19.5% (1995
83%. The 2002 import level translates to approxi-
figures from Human Development Report 1998; 2001
mately 48.3 new pieces of imported apparel purchased
figures from World Bank, 2000). The financial crisis
per year, per person (author’s estimates from data of
interacted with ongoing structural features in the mar-
U.S. Census Bureau, Current Industrial Reports, 1997,
ket for apparel workers to push wages to very low
2003, Apparel, Table 5).
levels in countries such as Indonesia and Thailand.
Low apparel prices have contributed to what we
Notably, wages in Malaysia remained higher, most
might term bexcessive accumulationQ of garments by
likely due to its imposition of capital controls, and
American consumers, and a move toward bdisposable
because it was less affected by the crisis.
apparel.Q Excessive accumulation is characterized by
The financial collapse also exerted downward pres-
high rates of discard, low rates of utilization of exist-
sure on wages beyond those countries that were
ing inventories of garments, rapid fashion cycles, and

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314
J.B. Schor / Ecological Economics 55 (2005) 309–320
a failure to wear garments through their useful life
3. Falling prices and rising quantities—other
cycles. Excessive accumulation is an ongoing trend,
manufactured goods
but has been exacerbated by rapid economic growth in
the 1990s and the continuing decline of apparel prices.
Apparel may be an extreme case. But the dynamics
Another vantage point from which to consider
of low cost production, falling import prices, rising
excessive apparel consumption is the secondary mar-
expenditures and rising quantities appear to describe
ket for used apparel (see Schor, 2002). Interviews
markets for a variety of other products as well. I have
with employees of Goodwill and others in the industry
been able to locate data on units consumed for only
revealed that the market for used clothing collapsed in
some products, and usually only from 1996–1997 to
the late 1990s, not long after the Asian financial crisis.
2001–2002. Unless otherwise noted, estimates of
Renee Weippert, Director of Retail Services at Good-
quantities are my calculations from data provided in
will International, estimated that prices in the salvage
the Census Department’s Current Industrial Reports.
market dropped to 2–3 cents/lb by late 1999, subse-
Consumer price are from the US Department of
quently recovering to the 7–8 cent range (interview
Labor’s Consumer Price Index for Urban Consumers.
with author). Two developments appear to have been
Consumer expenditures are from the US Department
at work. First, the booming US economy throughout
of Labor’s Survey of Consumer Expenditures (both
the 1990s yielded a sharp increase in rates of discard
are accessible from bls.gov.). Price indices for a num-
throughout the decade. Donations to Goodwill
ber of commodities are shown in Table 1.
increased by an estimated 10% or more each year
Consider toys, most of which are now made in
(interview with author). Second, the demand for
China. In 2001, US expenditures on toys totaled
used clothing fell, both domestically and abroad. In
$29.4 billion a year. Eighty percent of that total was
the US, the decline in new apparel prices led to a shift
imported, and 71% came from China (National Labor
out of the used segment of the market, which
Committee, 2002). The average production wage in
depressed used clothing prices. At the same time,
Chinese toy factories is 14–19 cents/h, and the wage
purchasing power in Asian markets fell as wages
range is from 7 to 33 cents. Extremely long hours
plummeted, eliminating a key market for used Amer-
(13–19/day) and 7-day workweeks are the norm
ican clothing. (For an in-depth look at the overseas
(National Labor Committee, 2002). Toy prices have
market for used clothing, see Hansen, 2000.) Unpub-
fallen dramatically. The CPI for toys went from 122.4
lished analyses by Kristen Heim and myself find that
in 1993 to 126.7 in 1997, and subsequently fell to
imports of new apparel, by volume, are a significant
79.6 in 2005. The total volume of toy units consumed
predictor of the export of used clothing from the US to
in 2001 was 3.6 billion. Assuming that all toys are
the rest of the world.
consumed by children ages 0–12, that translates to 69
The apparel case also illustrates the important role
new toys a year for each child. (This is a conservative
of US imperial power. Although in apparel, factories
estimate, because although some toys are consumed
are not typically directly owned by US multina-
by adults, children aged 10–12 now consume very
tionals, in many cases their market and political
few toys. Indeed, the toy industry has lowered its
power yields effective control over the supplying
upper age threshold to 10.) (Author’s estimate from
companies. Furthermore, US military and political
National Labor Committee, 2002).2
power is key to the survival of governments in
The collapse of computer prices, and high acqui-
exporting countries that repress unions and worker
sition rates for computing machines is another well-
protests and back up the power of factory owners. In
known example. A CPI category for personal com-
some cases, for example Bangladesh, factories are
owned by members of the military and the govern-
ment, who wield considerable power to repress
2 Referees have asked about the nature of toys, and their environ-
workers. This larger political environment, and its
mental impact. This category does not include video games, which
account for the bulk of toy revenue. The vast majority of toys
role in reproducing the exploitation of labor has been
currently produced are made of plastic. The 69 units per year figure
detailed extensively (Chomsky, 1999, 2003; Klein,
includes both toys sold directly, and the large number which are
2000; Wallach, 2004).
given with fast food meals.

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J.B. Schor / Ecological Economics 55 (2005) 309–320
315
puters and peripheral equipment is available from
to 139.0 by February 2005. The number of vehicles
1997. By 2005, the index had fallen to 13.5, from
purchased increased, as dollar expenditures on new
a base of 100 in December 1997. In 2001, 22.76
vehicles increased considerably, from $1216/year in
million computers were consumed domestically,
1993 to $2052 in 2003. The price index for sporting
most of them imported. (Domestic consumption is
goods has fallen from 119.7 in February 1993 to
calculated as manufacturers’ shipments plus imports
114.37 in February 2005. Jewelry and watches have
for consumption minus exports of domestic merchan-
declined from 146.2 in February 1993 to 127.1 in
dise, which is typically contained in Table 3 of the
February 2005. Overall, the CPI index of durables
Census report.) Here too disposability has become
has fallen from 119.8 (February 1993) to 115.8
the norm. It is estimated that in 1998, 20 million
(February 2005).
computers became obsolete and were taken out of
service, and that in 2005, 63 million personal com-
puters will be retired. (Computer retirements from
4. Environmental impacts of rising consumption
http://www.backthruthefuture.com/computerrecycling.
htm.) Similarly, television prices have collapsed,
The foregoing discussion has provided some data
from 65.7 to 27.8 in 2005. The number of televisions
on the trend of rising consumption of manufactured
purchased by American consumers rose from 33.9
goods by units consumed, rather than the more com-
million in 1997 to 38.3 million in 2002, an increase
mon metric of dollar values. I have chosen to focus on
of roughly 13%.
units because they are a more environmentally rele-
There is also data available on a number of other
vant measure. Of course units consumed is not an
products. The Current Industrial Reports series pro-
ideal measure. The optimal measure would be a pro-
vides data on bed and bath furnishings, i.e., sheets and
duct-specific environmental impact per unit or dollar.
pillowcases, and towels. Between 1996 and 2002, the
But such a measure does not exist. Furthermore, there
number of purchased sheets and pillowcases rose
are no well-elaborated models of the global economy
29%, and towels increased 22%. Or consider foot-
that allow us to readily assess the impact of material
wear, a product that is similar to apparel in terms of
consumption flows at the level which is relevant for
exploitative wages and working conditions. The foot-
this analysis. Such a model would require both data
wear index declined from 126.0 in February 1993 to
on environmental impacts at the site of production,
123.0 in February 2005. Census data on shoe imports
transport impacts, and consumption externalities at
reveal a continuing increase, which in 2003 comprised
the point of consumption. Given the paucity of rele-
98.9% of domestic consumption. In that year, 1.2
vant data, what, if anything, can we say about the
billion pairs of shoes were imported, or just over
environmental impact of the rise in manufactured
four new pairs per person per year. In contrast to
goods consumption?
other product categories, however, the Census esti-
First, it is important to remember that all manu-
mates reveal a decrease in apparent domestic con-
factured goods have environmental effects associated
sumption between 1993 and 2003. Given that
with their production and in some cases, consump-
annual consumer expenditures on foot wear rose
tion. In many cases, these effects are substantial.
over this period, consumers must be upscaling to
Cotton production is pesticide intensive and depletes
more expensive shoes and boots.
soil at a rapid rate. US-bound textiles use carcino-
Prices have fallen in a variety of other product
genic azo-dyes (they have been banned in Europe)
categories as well, however, I have not found quan-
(Robins and Humphrey, 2000; Schor, 2002). Textile
tity data for these products. Appliance prices have
and computer chip production are extremely water
declined, from 100 in 1997 to 86.6 in February
intensive. Leather tanning for shoes, handbags, cloth-
2005. Between 1993 and 2003, consumer expendi-
ing and other goods uses highly toxic substances and
tures on appliances rose. (Major appliance purchases
is contributing to significant water pollution in
rose
while
expenditures
on
small
appliances
regions with tanning industries, such as South
remained constant.) New vehicle prices rose from
Asia. Computer production involves the intensive
131.0 in February 1993 to 144.6 in 1997, but fell
use of toxic metals, many of which are currently

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J.B. Schor / Ecological Economics 55 (2005) 309–320
entering the waste stream (see Durning and Ryan,
the increased consumption of materials-intensive
1997). Mining for the precious metals that are used
manufactures has few general equilibrium impacts,
in jewelry and watches is extremely destructive to
and can be mainly analyzed as an expenditure neu-
ecosystems. In addition, mining activities employ
tral increase in units consumed and therefore in
highly toxic chemicals. The ecological effects of
throughput in the manufactured goods sectors, plus
automobile production and use have been widely
the added transport costs. More generally, to the
documented. Toys, perhaps the least ecologically
extent that the trends I am describing represent an
significant of the commodities discussed above, are
increase in total consumption, there is an intensified
nearly all plastic, and produced with toxic chemicals
environmental impact.
and with oil-intensive processes. Ceteris paribus,
increases in the consumption of all these products
result in higher levels of toxic output, materials use,
5. The cheap banana—the collapse of primary
ecosystem degradation, and other negative environ-
commodities prices
mental impacts, than is the case when lower quan-
tities are consumed.
So far I have discussed the growth of consumption
However, one might well ask, is ceteris really
in manufactured goods. There is an analogous devel-
paribus in this case? Ideally, we would want to con-
opment occurring with primary commodities. Cheap
sider these trends within a general equilibrium con-
and falling prices made possible by the projection of
text. Doing so requires answers to questions such as
US power abroad are resulting in increased consump-
whether the growth in durables consumption is at the
tion of imported commodities. The canonical case is
expense of saving and investment, government expen-
perhaps the banana.
diture, or the consumption of services, and what the
The political economy of banana production is
environmental impact of those activities is. Further-
relatively well known, however it may be worth
more, we need to know whether the macroeconomy
reviewing it briefly. Early in the century, American
follows a neoclassical, Keynesian or Marxian process.
companies opened operations in the banana producing
(In the neoclassical world, higher consumption
regions of Central America and established plantation
crowds out investment or government spending, in
agriculture, relying on exploited labor and eventually
the Keynesian model it yields higher total output.)
chemical agriculture. In Guatemala, United Fruit
In this case, there are also global general equilibrium
became the country’s largest employer and also held
effects. To be more precise, has the rise in U.S.
monopolies in other areas of the economy (railroads,
consumption of manufactured goods been accompa-
port, electric company). In 1954, the country’s first
nied by declines in the consumption of more dama-
democratically elected government, led by President
ging products?
Jacobo Arbenz, proposed minimum wage laws, lega-
Perhaps, but it seem unlikely because manufac-
lization of unions, and a populist land reform. In
tured goods have generally been understood as more
response, United Fruit convinced the US government
ecologically damaging than services. Of course, ser-
to carry out a coup against Arbenz, which they did
vices are an extremely diverse category, which
through a CIA-organized invasion and aerial bom-
include both highly damaging activities (tourism
bardment. Interestingly, the Justice Department offi-
with air travel) and relatively low impact activities
cially rationalized its prosecution of the coup on the
(education, human services, health care). Further-
grounds that Arbenz was illegally cheating the Amer-
more, the shift to offshore low wage production
ican public out of the right to buy competitively
has been linked to lower enforcement of environ-
priced (that is, cheap), bananas.3 (On this history,
mental regulations and a process of deliberate relo-
cation of production to avoid paying environmental
3
costs (e.g., tanning, disposal of electronic waste).
United Fruit was able to arrange the coup partly by virtue of its
close ties with the US government, which included business ties
Both these arguments suggest that the net impact
with CIA director, Allan Dulles, his brother, former Secretary of
of the trends discussed above result in higher envir-
State John Foster Dulles, and a variety of other military and political
onmental impact. So too does an analysis in which
officials.

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J.B. Schor / Ecological Economics 55 (2005) 309–320
317
see Kwitny, 1984, Justice Department on competi-
out. The collapse of cocoa prices in the late 1990s
tively priced bananas is pp. 227–228). One longstand-
rendered them too low to support adult farmers and
ing result of the US interventions has been the
their families, and growers turned to what has now
transformation of a once scarce and exotic tropical
become a substantial level of trafficking in child
fruit into an everyday basic of the American diet. In
slaves.
2002, the average American ate 26.8 lb of bananas a
These declining prices have been followed by
year, far more than any other fruit, including all
rising consumption for some primary commodities,
domestically
grown
fruits
(Statistical
Abstract,
although price elasticities of demand for food are
2004–2005, Table 200, p. 132).
lower than for manufactured goods, and far less of
This story also has a recent chapter. In the late
the price decline has been passed on to consumers.
1990s, United Fruit brought the US and Europe to
Consumption of most imported fruits, such as bana-
the brink of trade war when CEO Carl Lindner, a
nas, pineapples, cantaloupes, mangoes, kiwifruit,
major Clinton Administration campaign contributor,
papayas, and other varieties have risen in the last
convinced the US to mount a WTO challenge
decade. Between 1990 and 2002, per capita con-
against
a
European
development
program
for
sumption of bananas went from 24.3 to 26.8 lb/
small impoverished banana growers in tiny islands
year, in contrast to declining consumption for apples,
like St. Lucia and Grenada. United Fruit was at
peaches and nectarines, and plums and prunes, which
that time trying to make inroads into the European
are domestically grown. bOtherQ fruits (which are
banana market, and resented the quotas European
mainly imported) rose from 5.2 to 8.6 lb/year (fruit
countries had put in place to help struggling farm-
consumption from Statistical Abstract, 2004–2005,
ers. Despite the lack of American jobs involved,
Table 200, p. 132). Per capita consumption of
the US pressed the case, and won. The Europeans
cocoa rose in the second half of the 1990s, but has
put up a strong fight, and in the process threatened
subsequently declined (Statistical Abstract, 2004–
sanctions on US goods. The rhetoric heated up and
2005, Table 199, p. 131). Coffee consumption has
trade war seemed about to ensue. In the end, the
not increased, most likely because of the rise in con-
demands of United Fruit were met, and socially
sumption of carbonated soft drinks, which in turn
and ecologically stable banana production was
have been driven by the low price of high fructose
undermined.
corn syrup. (Per capita consumption of corn syrup has
Cheap bananas have been followed by other
risen from 49.6 lb in 1990 to 62.8 in 2002. Statistical
cheap commodities—as the structure of interna-
Abstract, 2004–2005, Table 199, p. 131).
tional markets keeps prices down for the agro-con-
glomerates who are the major international buyers.
Primary commodities, excluding energy products,
6. Sustainability politics and the global economy
have been subject to declining prices for more
than 20 years, a period coinciding roughly with
The foregoing analysis suggests that environmen-
the shift to neo-liberal policies and a globalizing
talists need to consider the obstacles to sustainable
world economy. In the 1980s, the UN index of
consumption created by corporations’ quest for cheap
non-fuel commodity prices declined 45% (Maizels,
labor and resources. I have argued that falling prices
1992). In the first half of the 1990s, prices were
for imported goods have been accompanied by
roughly stable, but since 1995, they have declined
increases in the quantity of units consumed and that
sharply. The IMF index for non-fuel commodities,
this is an important effect of the global economy and
set at 100 in 1995, stood at 79.1 in April 2003
the projection of US power abroad. These develop-
(IMF
non-fuel
primary
commodities
database).
ments have been insufficiently recognized in the dis-
Some commodities have experienced especially
course on sustainable consumption.
extreme cases of price decline, with ensuing public
My perspective suggests the need to re-structure
attention. For example, coffee prices fell by more
the rules of the global economy to prevent exploi-
than 80% in the late 1990s and early 2000 and
tation of labor and resources, which should have
2001, and thousands of coffee farmers were wiped
the effect of raising the prices of imports both

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318
J.B. Schor / Ecological Economics 55 (2005) 309–320
relative to other goods, and also in real terms.4
there are other reasons to believe that US consumption
Higher prices should reduce demand for imports. A
is too high, both relative to the provision of leisure, as
shift to higher foreign wages and more internalization
well as inter-temporal allocation (see Arrow et al.,
of ecological costs will help satisfy elementary criteria
2004 on inter-temporal allocation; Schor, 2005 on
of justice, such as the right of foreign laborers to a
the
production–leisure
tradeoff).
One
argument
decent livelihood (a human rights principle) and the
along these lines, which I have made elsewhere, is
right of all people to share in the bounty of the earth
that global sustainability can and should be achieved
(an ecological global equity principle). While some
partly by wealthy countries taking productivity
have argued that increases in purchasing power in
growth in the form of more leisure, rather than more
developing countries have a detrimental ecological
consumption. This will free up scarce ecological
impact, higher production wages will raise the con-
resources for developing countries (Schor, 1991,
sumption of the poor, rather than the middle classes.
2001, 2005).
This should be positive from an environmental point
Regrettably, the current rules and structure of the
of view. In any case, because the average footprint
global economy are moving the world in an opposite
of US consumers is above that of almost all other
direction. Neo-liberal policies continue to undermine
consumers, any shift of purchasing power away
the bargaining power of labor. The elimination of
from US consumers to other countries should on
regulations governing capital flight have led, not
balance be environmentally beneficial. (On consump-
only to catastrophes like the Asian financial crisis,
tion and environment in the South, see Myers and
but also to more leverage for capital, which uses its
Kent, 2004).
mobility to repress wages. This capital flight, both
In addition to the argument that imperial power is
actual and threatened, has been an important compo-
artificially depressing prices and raising consumption,
nent of the ongoing regime of low and even falling
wages in developing countries. The Bretton Woods
institutions have to date served the interests of multi-
national capital, at the expense of workers and in
4 One dimension of the problem that I have not addressed is the
many cases, domestic capital. My larger point,
way in which cheap prices have become increasingly essential for
the daily reproduction of low-wage workers and the poor. The
which is well documented in the political economy
long-term decline of the real minimum wage, the erosion of
literature, is that the neo-liberal policies, existing glo-
market power and protections for workers, and the growing supply
bal economic institutions and structures, and the exer-
of so-called low-skilled labor has led to a persistent decline in real
cise of its considerable power by the US government
wages for the lower tier of the labor market. Coupled with the
reproduce the global regime of cheap and disorga-
elimination of the safety net, low income people have come to rely
on low-price outlets such as Wal-Mart. There is a vicious circle in
nized labor.
which the availability of cheap goods makes possible the payment
The preferable path would be to institute struc-
of low wages, and the payment of low wages necessitates the
tural changes in the operation of the global econ-
availability of cheap goods. Significantly, a single entity such as
omy. These include strong labor and environmental
Wal-Mart and similar stores has a significant effect on both
standards that will end sweatshop conditions and
consumer prices and domestic wage setting. In the short run,
this dilemma suggests that the interests of the poor and those of
environmental hazards. A just and ecologically
sustainability are at odds. However, this is a short-sighted per-
healthy global economy will have to be rooted in
spective. In the long run, US global policies create and perpetuate
a structure of wages in currently poor countries
poverty abroad, which is increasingly tied to domestic poverty.
that can support strong domestic demand, as well
This occurs by creating desperate immigrants who have no choice
as a closer balance of power between capital and
but to work for sub-standard wages, making possible the foreign
sweatshops which put domestic enterprises out of business, and
labor, more equal distributions of income and
facilitating capital mobility which undermines the bargaining
wealth, and re-regulation of some financial markets.
power of domestic labor. Furthermore, maintaining a regime of
As environmentalists have long recognized, sustain-
ecologically, unsustainable, but low prices in order to sustain
ability will also require more sophisticated property
purchasing power for the poor solves a problem for a subset of
relations than the current private property model
the population, but reproduces another one for the entire planet.
Almost any approach that boosts the purchasing power of the poor
allows (see Ostrom, 1990; Parthasarathi, 2002). In
would be preferable.
light of these objectives, the need for ecologists to

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Document Outline

• Prices and quantities: Unsustainable consumption and the global economy
  • Introduction: the problem of unsustainable consumption
  • The global sweatshop-the case of apparel
  • Falling prices and rising quantities-other manufactured goods
  • Environmental impacts of rising consumption
  • The cheap banana-the collapse of primary commodities prices
  • Sustainability politics and the global economy
  • References

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