Brands of Economic Thought

What brand of economics supports sustainability?

Sustainability requires a more humble version of and scope for what Karl Polanyi calls substantive economics, as distinct from the formal economic analysis practiced by academically certified economists. This inversion of economics is the foundation of a strategy of sustainability. Simply put, economics has a place, and economics must be put in its place. So, what is that place? How can we properly situate economics for sustainability?

Neoclassical Economics: externalities

Externalities is primary market failure under consideration here. Externalities is discussed elsewhere. But neoclassical economics will not support sustainability, even in the guise of "environmental economics," which acknowledges, but trivializes as "side effects," the social costs of markets. ESS must move on.

Ecological Economics: scale

Scale now becomes a factor, questioning growth paradigms, but not quite critical theory. Two major advances of ecological economics are the decoupling of qualitative development from quantitative growth and the embedding of the economy within nature. Markets validated so long as markets tell the ecological truth. Professional economists dominate, so still planted within academic traditions of the economist.

Eco-Economics:
Ecology > Economics

In contrast, eco-economics takes a step away from the profession of economics. Eco-economy uses economics as a practical tool to shape sustainability but embeds its diagnosis and prescription in cultural and natural contexts. For eco-economy, economic analysis, like technological innovation, remains a means, not the ultimate objective.

Takes seriously the primacy of ecology and recognizes that economics provides means, tools, policy analysis. Permits entry to participants beyond professional economics. Brown and Sachs are excellent examples of applied eco-economics.