ABSTRACT
This chapter explores the possibilities of quantifying environment-economy interaction by means of comparable measures, uses the underlying concepts for operational definitions of sustainability in growth and development. Mainstream economists seem to ignore or deny the mounting critique of economic fundamentals, in particular of rational microeconomic behaviour in perfectly competitive markets, ensuring optimality in the allocation of scarce resources. The result is a distinct dichotomy in measuring and analysing the interactions between environment, economic performance, growth and development. Eco-nomics can be seen as overcoming the widespread neglect of environmental concerns in conventional market economics. The ultimate effects of initial cost internalization on economic aggregates would have to be modelled according to prevailing price elasticities and technological structures. Ecological sustainability represents an application of the ecological concepts of carrying capacity and optimum sustained yield of bioproductive systems to the general use of nature by humans, notably for life support.
