Ecological economics takes a whole-systems approach to understanding economic
behaviour as opposed to environmental economics, which approaches the topic in the
traditional reductionist manner common in neoclassical literature. The economy in the
whole-system approach is seen to be embedded as a subsystem within that of the natural
environment, using the natural resources of plant, animal and fish populations, soils and
minerals for production and consumption and using the atmosphere, waterways and seas
and land to discharge waste and pollutants. It is to be distinguished from environmental and
resource economics, which is the application of neoclassical equilibrium economics to the
problems associated with the natural environment. Ecological economics allows for
complexity and evolutionary theory and emphasises institutions, non-linear dynamics, and
deep uncertainty. The global ecosystems are seen as highly complex and as being
threatened by deforestation, loss of biodiversity, and global warming. It is pluralist and
transdisciplinary in that it includes the disciplines necessary to study specific problems, i.e.
it is oriented towards problem-solving
Ecological economics takes a whole-systems approach to understanding economicbehaviour as opposed to environmental economics, which approaches the topic in thetraditional reductionist manner common in neoclassical literature. The economy in thewhole-system approach is seen to be embedded as a subsystem within that of the naturalenvironment, using the natural resources of plant, animal and fish populations, soils andminerals for production and consumption and using the atmosphere, waterways and seasand land to discharge waste and pollutants. It is to be distinguished from environmental andresource economics, which is the application of neoclassical equilibrium economics to theproblems associated with the natural environment. Ecological economics allows forcomplexity and evolutionary theory and emphasises institutions, non-linear dynamics, anddeep uncertainty. The global ecosystems are seen as highly complex and as beingthreatened by deforestation, loss of biodiversity, and global warming. It is pluralist andtransdisciplinary in that it includes the disciplines necessary to study specific problems, i.e.it is oriented towards problem-solving
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