HL.b.9—Ecological economics

Model the economy as part of the biosphere.

Ecological economics treats the economy as a subsystem of society and the biosphere, dependent on finite natural capital and biophysical limits.

A factory can increase output only while energy, materials and waste sinks remain available.

Start with ecological carrying limits, then ask how production and distribution fit inside them.

Key idea: Model the economy as part of the biosphere.

The economy is not independent of ecosystems simply because markets use prices.