Ecological Economics

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Ecological Economics

History | References

“Without ecology there can be no economy and no society. ”
– World Economic Forum

Business As Ecology
The concept of ecological economics (video) is not new, but it is revolutionary. It arose in many ways as a response to the harmful aspects of neoclassical economics based on an empty world model that has resulted in the many well-known biosphere stressors listed in the Scientists’ Warning to Humanity. Recently, it has also been recognized and categorized as a stressor in and of itself.

According to Trajectories of the Earth System in the Anthropocene and scientific consensus, continuing with business as usual is not an option if we want to turn back from the sixth mass extinction now underway. Implementing an ecological economic model, adopting sustainability practices and rewilding the world will be crucial if we are to avert the increasing climate and biosphere disasters we are already seeing the signs of.

As a global species we are facing an Arctic BOE, extreme weather, increased greenhouse gas emissions, air pollution, ocean acidification, warming oceans, biodiversity loss. habitat loss, wildfires, overpopulation, drought, desertification, famine, climate refugees, nuclear waste issues, disease and much more.  It’s simple — we must stop burning the planet for profit.

Ecological economics could get us where we need to be. It is certain that we need an ecological civilization before it’s too late. As the eminent journalist Michael C. Rupert once said regarding the coming collapse of this civilization “unless you change how money works, you change nothing.” This is the first step in resolving this crisis.

What is Ecological or Eco-Economics?
“Ecological economics is an interdisciplinary field of economic research and practice that aims to address the interdependence of human economics and natural ecosystems over time and space.”

It is also sometimes called green economics. It is distinguished from the field of environmental economics by its treatment of the economy as a subsystem of the ecosystem (a microcosm within a microcosm intricately interconnected with every other) and it’s emphasis is on preserving natural capital rooted in a full world mindset, or a holistic approach.

In ecological economics there is a focus on sustainability (video), nature, justice, energy accounting and balance along with an adherence to the Gaia principle or other similar ethics that put nature first. The basic definition of economics as the allocation of scarce resources is also used in ecological economics.

Herman E. Daly is often credited with being a primary contributor to this paradigm. He is an ecological economist and Emeritus Professor at the University of Maryland, School of Public Policy. Herman Daly is now leader of the Great Transition Initiative (GTI). There are many discussion and open lectures available with Herman Daly on YouTube (video). GTI focuses on implementing ecological economic models and sustainable practices in business and governance.

Transitioning to a flourishing (video) biosphere and economy is possible with ecological economics according to one of it’s other founders, Dr. Robert Costanza at Yale University. In the following video, Dr. Robert Costanza discusses Ecological Economics. In this lecture, Dr. Robert Costanza introduces this report to the UN, which details the current state of ecological economics modeling and conceptualization for countries, companies, and citizens. He discusses a plan to implement this as a primary economy in every country in the world.

Many are also discussing the concepts of natural capitalism and well being economy as ways of adopting ecological economics into practical models any individual or business can get started on today.

The Gaia Atlas of Ecological Economics is a highly recommended resource for learning more about this topic. Additionally, here is a growing list of several projects that are incorporating, defining and implementing similar or congruent aspects of ecological economics:

  • Appropedia
    Appropedia, aka the sustainable wiki is for collaborative solutions in sustainability, appropriate technology, poverty reduction, and permaculture.
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  • Blue Economy
    According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.” … For others, it simply refers to any economic activity in the maritime sector, whether sustainable or not.”
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  • Circular Economy
    A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.
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  • Club of Rome & Sustainability
    he first report of the Club of Rome was the famous The limits to growth, brought out in 1972 by an MIT research team coordinated by Dennis and Donella Meadows. It caused a great sensation because of its clear message. Recently the Club of Rome has released it’s Climate Emergency Plan.
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  • Doughnut/Donut Economics
    Donut economics is an economic theory developed by Kate Raworth which places humanity’s 21st century challenge as ensuring that every person has the resources they need to meet their human rights, while collectively we focus on sustainability and live within the ecological means of this one planet.
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  • Ecology of Commerce
    The world has changed in the seventeen years since the controversial initial publication of Paul Hawken’s Ecology of Commerce, a stirring treatise about the perceived antagonism between ecology and business yet Hawken’s seminal work continues to advise us today. This work is continued in Drawdown which provides steps and solutions for reversing global warming.
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  • The Economics of Enough (video)
    The world’s leading economies are facing not just one but many crises. The financial meltdown may not be over, climate change threatens major global disruption, economic inequality has reached extremes not seen for a century, and government and business are widely distrusted. At the same time, many people regret the consumerism and social corrosion of modern life. What these crises have in common, Diane Coyle argues, is a reckless disregard for the future–especially in the way the economy is run. How can we achieve the financial growth we need today without sacrificing a decent future for our children, our societies, and our planet? How can we realize what Coyle calls “the Economics of Enough”?
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  • Natural Capitalism
    Most businesses still operate according to a world view that hasn’t changed since the start of the Industrial Revolution at a time when natural resources seemed limitless. “Natural Capitalism: Creating the Next Industrial Revolution” is a 1999 book co-authored by Paul Hawken and Hunter Lovins. It has been translated into a dozen languages and was the subject of a Harvard Business Review summary. More recently, Our Finer Future was released and many sustainable business programs have begun nationally due to this work.
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  • Silver Gun Hypothesis | Stanford
    The Silver Gun Hypothesis is a claim that a global carbon reward can improve social cooperation, incentivize mitigation actions, and limit the risk of dangerous-to-catastrophic climate change.
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  • Rewilding Earth
    Rewilding focuses on the need for large carnivores and protected wildways. A scientifically credible vision for the future of wild Nature and humans.
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    There are hundreds more projects in sustainability worldwide discussing adopting ecological economic models and natural capitalism. There are now many emerging smart city projects as well. The Venus Project (video) is worth noting because it is an inspiring project that is often considered so futuristic that it is not realistic. However, it provides many examples to learn from and discusses how a society would work without currency – yes, that’s right without money. Additionally, the Free University of Berlin lists many more ecological, resource-based and sustainable projects.

A Sustainable Future
At the heart of ecological economics is the sustainability model. The good news is it is becoming a buzzword as individuals and business increasingly begin asking themselves how they can do better. Dr. Philip Lawn, from the International Society for Ecological Economics, introduces this concept and discusses the root cause of climate change, and so many other ills of society and the ecosphere, related to our global addiction to economic growth in this discussion of resilience questions.

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What is Sustainable Development?
According to Wikipedia, “sustainability is the process of maintaining change in a balanced environment, in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations.”

Sustainable practices can make any individual, business, city, or country highly proficient in methods that are highly sought after, especially in a modern world seeking to enhance energy inefficiency and reduce carbon emissions, waste, and the toxic load on ecosystems we rely on for life in the biosphere.

Another goal of sustainability is to discover and develop the technologies of the future. Groups such as Permies and Retrosuburbia are examples of communities that embrace these practices and are already putting these principles to work.

Sustainability intersects with politics, economics, and philosophy as well as the social and physical sciences. Sustainability work and workers are needed in civic planning, environmental consultancy (built and natural environment), agriculture, not for profit, corporate strategies, health assessment and planning, law and decision/policy making and beyond. Some examples of sustainable solutions and communities in action are provided in the following discussion.

Bhutan & Gross National Happiness (GNH)
Deep in the Himalayas, on the border between China and India, lies the Kingdom of Bhutan, which has pledged to remain carbon neutral for all time. In this illuminating talk Bhutan Carbon Negative Model (video), Bhutan’s Prime Minister Tshering Tobgay shares his country’s mission to put happiness before economic growth and set a world standard for environmental preservation.

Bhutan is already doing what the rest of the world needs to do and no one even asked them to do it. Doing the right thing should be simple and straightforward, otherwise there’s likely something wrong with your operating system.

The Stockholm Resilience Center & Club of Rome
Johan Rockström (Stockholm Resilience Center), talks about planetary boundaries and tipping points in this sustainability planning video, “Living in the Anthropocene” at the Club of Rome 50th Anniversary Meeting in October 2018. Johan Rockström outlines the report, “Transformation is feasible – How to achieve the Sustainable Development Goals within Planetary Boundaries.”

Explore Further >>
Find more projects from around the world that are inspiring sustainable interventions and unique solutions for make a better, cleaner safer world on the SW Notable Projects Wiki.

  • Costanza, Robert (2017). Ecological economics with Robert Costanza [Video]. Retrieved from https://www.youtube.com/watch?v=8lBCBxeCJJU
  • Daly, Herman (2018). Great transition initiative. Retrieved from https://www.greattransition.org/contributor/herman-daly
  • Ekins, Paul (1992). Gaia atlas of green economics [Book]. New York, NY: Anchor Books.
  • Hawken, Paul (2010). Ecology of commerce [Book]. HarperBusiness.
  • Lawn, Philip (2016). Resolving the climate change crisis: The ecological economics of climate change [Book]. Netherlands: Springer.
  • Lovins, Hunter (2018). A Finer Future [Book]. New Society Publishers.

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  • 2:45 pm Jan. 20, 2019 – Shani Cairns – (Reviewed the content and updated and added several sections and annotated each of the ecological economics models. Added several new models).
  • 11:00 am Jan. 19, 2019 – Heidi Brault – (Minor editing/punctuation).
  • 2:00 pm Jan. 17, 2019 – Shani Cairns – (Reviewed the content and updated and added several sections).
  • 1:35 pm Jan. 16, 2019 – Shani Cairns – (Added new on-page references and history sections and updated content).
  • 7:15 pm Jan. 02, 2019 – Shani Cairns – (Added Ecological Economics initial content and sections).

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Note: This page is in a very early draft stage and as with many wiki pages, it is a work in progress. It aims to introduce the topic of ecological economics.

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