ABSTRACT
Ecological economics rejects the neoclassical approach of beginning with theory and mathematics, and instead begins from the science of ecology and seeks ways to link it to the discipline of economics. As outlined in this chapter, these two approaches to tackling the environmental consequences of economic activity also differ in their definition of sustainability: neoclassical economics suggests that technology can allow for the creation of tools and machines to replace natural capital, while ecological economists believe natural capital is irreplaceable. The chapter outlines some of the key concepts and theories developed by the ecological economists: drawdown, overshoot, crash, die-off, renewable and holism. The chapter then examines one of the key insights of this school: the importance of the steady-state economy (SSE). Finally, it concludes with a case study that helps to illustrate the underlying philosophy of ecological economics: a discussion of the viability of pricing aspects of our natural environment that environmentalists think are, in reality, priceless.
