The Domain and Essence of Ecological Economics

Abstract

Ecological economics is an emerging research field that directly inquires into the working properties of economic-environmental interactions, the dynamic relationships within which humans interact, and the processes through which humans can affect these interactions towards a sustainable development future. The emphasis on the biophysical constraints distinguishes ecological economics from conventional economics. An alternative perspective on economic-environmental interactions, a trans-disciplinary analytical framework and a participatory process for policy formulation are identified as essential elements in the hard core of this research endeavor towards sustainability. From the ecological economics perspective, the efficient allocation and utilization of limited natural and environmental resources as the basis for maximizing economic welfare has been subsumed within the broader objectives of ecological-economic-social sustainable development. Ecological economics attempts to improve scientific understanding of the natural and social processes relating to human interactions with the environment and, at the same time, provide information relevant to decision-making on sustainable development.