069. Economic theories: Ecological Economics

Ecological economics, developed by Herman Daly, Robert Costanza, and others, views economies as part of the environment, prioritising sustainability and recognising the limits of natural resources. It arose from concerns over resource depletion and environmental harm, critiquing mainstream economics for overlooking ecological constraints. Unlike growth-focused models, ecological economics advocates maintaining resource use within planetary boundaries, internalising environmental costs, and using metrics like carryingcapacity and ecological footprint. Key policies include carbon pricing and green taxes. While it faces criticism for challenging economic growth and lacking formal models, its principles are increasingly influential in climate policy and sustainability debates, especially as environmental crises worsen.The approach encourages a shift from short-term profit to long-term resilience and intergenerational equity, though mainstream adoption remains limited.