Herman A. Daly was awarded the Dr A.H. Heineken Prize for Environmental Sciences 1996 because of his original contribution to insights into the socio-economic aspects involved in the decline of the environment.
He was one of the first economists to focus on environmental problems, and may be regarded as the founder of the promising new discipline of 'ecological economics'. Professor Daly studies the decline in the environment in relation to macro-economic activity. According to Daly, ultimately a sort of 'steady state' should be achieved in which the burden caused by economic production does not exceed the natural capacity of the environment. He has been instrumental in developing the idea that costs for the environment must be reflected in the market prices of goods and services. Daly's first publications on this subject originate from as early as 1968. Over the last few years, Professor Daly has written in particular on the significance of economic welfare and the measuring thereof. His Index on Sustainable Economic Welfare (ISEW) has caused a sea change in thinking on welfare.
Professor Daly has provided a high-quality contribution to both the academic debate and political discussions on the environment. The committee hopes that awarding the Dr A.H. Heineken Prize for Environmental Sciences to Daly will be an extra stimulus to him to continue his work, and that it will also encourage those who are currently developing with him the discipline of ecological economics.
The economist Herman A. Daly was born in Houston, Texas, in 1938. Daly obtained his B.A. degree in Economics from the Rice University (Houston) in 1960. Seven years later he received the Ph.D. degree from the Vanderbilt University, Nashville, Tennessee. Daly has worked at various universities in the United States and Brazil. From 1988 to 1994 he worked for the World Bank, whose Environment Department he helped develop and expand further. His present position is Senior Research Scholar at the University of Maryland, School of Public Affairs, College Park.