`Author:` Kate Raworth `Availability:` > [!info] > ## Key Takeaways ## Summary Ecological Economics and Doughnut Economics share a fundamental focus on redefining how we think about the economy's relationship to the environment and society. Both emphasise that economic systems operate within ecological and social boundaries, challenging traditional economic models based on perpetual growth. By applying systems theory to these frameworks, we can explore their complexity, interdependencies, and how cultural values shape and influence these ideas. #### Ecological Economics: An Overview ##### 1. Core Principles: • Sustainability: Economic activity must not exceed ecological limits (e.g., Earth’s carrying capacity). • Interdependence: Human economies are subsystems of the broader ecological system, which provides resources and absorbs waste. • Equity: Fair distribution of resources within and between generations. ##### 2. Key Differences from Neoclassical Economics: • Rejects the idea of the environment as merely an external factor or “input.” • Challenges the assumption of infinite growth, advocating for a steady-state or regenerative economy. ##### 3. Key Concepts: • Energy and Material Flows: Economic activity is studied in terms of physical inputs (e.g., energy, raw materials) and outputs (waste, emissions). • Natural Capital: Recognising ecosystems as finite resources essential to economic function. ### Doughnut Economics: An Expansion of Ecological Economics ##### 1. The Doughnut Model: • Developed by Kate Raworth, Doughnut Economics visualises a “safe and just space” for humanity, bounded by: • An ecological ceiling: Earth’s environmental limits (e.g., climate change, biodiversity loss). • A social foundation: Minimum requirements for human well-being (e.g., health, education, equality). ##### 2. Shared Vision with Ecological Economics: • Both reject GDP growth as the sole measure of success, advocating for well-being, sustainability, and equity. • Doughnut Economics provides a more accessible and visual framework for communicating ecological economic principles. ### Systems Theory in Ecological and Doughnut Economics Systems theory helps us analyse these ideas by focusing on interactions, feedback loops, and the emergent behaviour of interconnected systems. ##### 1. Economic Systems as Subsystems: • Systems theory highlights that economic systems are embedded within social and ecological systems, not independent entities. • Economic activities (e.g., production, consumption) are constrained by the flow of energy and matter within ecosystems. ##### 2. Feedback Loops: • Positive feedback (e.g., resource exploitation leading to climate change) and negative feedback (e.g., regulations or shifts to renewable energy) are critical to understanding ecological and economic dynamics. • Systems theory can guide policies that promote stabilising negative feedback (e.g., carbon taxes). ##### 3. Self-Organisation: • Like ecological systems, economies can self-organise and adapt to changes (e.g., green innovation). • Systems theory encourages recognising tipping points and building resilience into economic structures. ##### 4. Complex Interactions: • Systems theory shows that outcomes often arise from interactions, not single causes. For example: • Overfishing results from cultural norms (demand for seafood), economic incentives (profit), and ecological pressures (fish stock depletion). ### The Role of Culture in Systems Thinking and Economics Cultural values significantly influence how societies interpret and act upon ecological and economic systems. ##### 1. Cultural Drivers of Economic Behaviour: • Consumer culture often prioritises growth, consumption, and individualism, contributing to environmental degradation. • Cultural shifts towards sustainability (e.g., minimalism, circular economies) can realign economic activities with ecological boundaries. 2. Values and Perceptions of Limits: • Some cultures emphasise harmony with nature (e.g., Indigenous traditions) and may naturally align with ecological economics. • Others may prioritise technological solutions over systemic change, resisting limits to growth. 3. Cultural Impacts on Doughnut Economics: • The social foundation in the doughnut model is shaped by cultural definitions of well-being, justice, and equity. • Cultural narratives (e.g., degrowth vs. green growth) influence how societies attempt to meet ecological and social goals. Consequences of Applying Systems Theory 1. Shifting Economic Priorities: • Systems thinking shifts the focus from maximising GDP to maintaining system stability and resilience (e.g., ensuring ecological health and social well-being). • Policy would prioritise long-term systemic health over short-term economic gain. 2. Recognising Interdependencies: • Decisions in one area (e.g., energy policy) ripple through the system, affecting climate, biodiversity, and inequality. • Systems thinking encourages holistic decision-making to avoid unintended consequences. 3. Policy Implications: • Focus on building feedback mechanisms that promote sustainability (e.g., incentives for renewable energy). • Invest in resilience by diversifying economies and safeguarding ecosystems. 4. Cultural Transformation: • Systems theory emphasises that long-term solutions require cultural shifts. For instance: • Moving from consumption-driven identities to values of sufficiency and stewardship. • Aligning education systems with ecological literacy to foster systemic awareness. Conclusion Ecological Economics and Doughnut Economics align closely, with systems theory providing a powerful lens to explore their principles. Applying systems thinking reveals the interconnections between economy, ecology, and culture, highlighting the need for integrated, adaptive approaches. However, achieving sustainable systems requires not only structural changes but also cultural shifts, as collective values shape how societies interact with ecological and economic systems. ## Quotes - ## Notes - how is this connected to the idea of [[The Commons]]? - [ ] Look up civic square --- `Concepts:` `Knowledge Base:` [[Economics|Economics]]