Overview
Ecological economics treats the human economy as a subsystem of the biosphere rather than an isolated system. It establishes natural limits — energy throughput, material cycles, biological carrying capacity — as binding constraints on economic activity, not externalities to be “priced in.”
Core departure from mainstream economics: GDP growth is not inherently good if it depletes natural capital faster than it can regenerate.
Key Concepts
- Steady-state economy: An economy that maintains stable resource throughput within ecological limits
- Natural capital: Ecosystem services, biodiversity, and resources treated as capital stock
- Throughput: The flow of energy and matter from environment through the economy and back
- Daly’s triangle: The hierarchy of ends — ultimate means (energy) → intermediate means (economy) → ultimate ends (well-being)
Related
- Land and Nature Stewardship — Ecological systems that the economy depends on
- Finance and Economics — Mainstream economics context
- Bioregionalism — Place-based economic organization aligned with ecological limits