Economy, Environment, and Sustainable Development

Abstract

Economics, traditionally centered on the production of goods and utility maximization, has often undervalued the pivotal role of the environment in shaping societal welfare. The environment, as a provider of myriad resources, from non-renewable to renewable, and as a sanctuary for relaxation and natural beauty, is intrinsically linked to our economic processes. However, economic activities have progressively degraded this invaluable asset. The emergent focus on sustainability, with its dual lenses of weak and strong sustainability, offers a nuanced understanding of resource interrelations. Disciplines such as environmental economics offer market-based environmental solutions, while ecological economics posits the economy within the broader ecosystem, highlighting an inextricable bond. This chapter focuses on the harmonization of economic endeavors with ecological preservation to pave the way for genuine sustainable development.