Ecological Economics


Eco- from the Greek, οἶκος, oikos, meaning “house”.

Economics. Ecology. Both words start with the same etymological root, but historically, that’s about where the similarity between the two fields of study ends.

Ecology is the study of the relation of living organisms with each other and their surroundings.  Or, one could say the study of the larger “house” and the creatures–including us–in it.

Economics is the study of the management the production and consumption of goods and services, or the management of the “house”.

So when you get back to basic definitions, it’s odd to think that these two fields have been so disparate, and often in conflict, over most of the last century. This is where the new field of Ecological Economics comes in.

Unlike ecological economics, which is transdisciplinary, the traditional field of environmental economics is a subfield of classical economics that looks at human systems as largely apart from environmental ones, and also looks at the nature of exchanges (such as natural resource extraction and pollution) between them. In this classical view, nature is taken to be an infinite source of natural capital (which has led to externalization of this natural capital), supplemented with the the theoretical addendum that when nature does run out, it can be substituted with human capital.

Ecological economics takes some of the assumptions of environmental economics to task. It differs from environmental economics in that it views human economic systems as being embedded and interdependent with ecological ones, such that human capital cannot substitute for degraded or lost natural capital, especially when it comes to externalities impacting essential ecosystem services or functions. Ecological economics also acknowledges the limits of natural capital, and seeks to reduce its externalization.


What is the Ecological Economics Problem?

“Tools, insatiable wants and the potential danger of ignorance place humans in a unique position of being able to alter their ecosystems in ways that jeopardize their own social and economic structures and processes. While any species could exceed its own natural ecosystem’s carrying capacity or diminish that capacity to the point of self-extinction, only the human species has both the will and capacity to jeopardize itself, as well as the will and capacity to avoid it.”

Farber & Bradley

What do you think? Have humans reached, or are they reaching the carrying capacity of the Earth? Is there a problem? Could ecological economics tools lead to a practical way to fix it? I’d love to hear your thoughts via the comments.


If you want to dig deeper, main theorists in this area to check out include:

The field has been influenced on the work of several theorists (whose works have largely since been critiqued and updated) including:


The Gund Institute for Ecological Economics

Where can you go to learn more about ecological economics? A good an easy start would be to check out this handy online e-book “An Introduction to Ecological Economics“.

In addition, there are some organizations that specialize in the study of ecological economics:

  • Gund Institute for Ecological Economics: Located at the University of Vermont, “The Gund Institute is a transdisciplinary research, teaching, and service organization focused on developing integrative solutions to society’s most pressing problems…”
  • The International Society for Ecological Economics (ISEE): “Ecological economics exists because a hundred years of disciplinary specialization in scientific inquiry has left us unable to understand or to manage the interactions between the human and environmental components of our world…Ecological economics is based on the assumption that the economy is a subsystem of a larger ecological life support system. Understanding this relationship is central to meeting humanity’s current environmental challenges, as well as building a sustainable future. Ecological economists strive for an ecologically sustainable, socially equitable, and economically efficient future.”
  • The Canadian Society for Ecological Economics (CANSEE): “We recognize that economies of communities, regions, and countries are imbedded in and dependent upon nature’s capacity to sustain ecological goods and services for present and future generations. The CANSEE mandate is to promote an understanding of this reality through research, education and practice, and to inform policy development and decision-making in government, communities, businesses and other organizations.”
  • Ecolgical Economics (Journal): “The journal is concerned with extending and integrating the study and management of “nature’s household” (ecology) and “humankind’s household” (economics). This integration is necessary because conceptual and professional isolation have led to economic and environmental policies which are mutually destructive rather than reinforcing…”