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Of Ecosystems and Economies: Re-connecting Economics with Reality

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  • Clive Spash
  • Tone Smith

Abstract

This discussion paper looks at the connections between economies and ecosystems, or more generally biophysical reality. The term ‘economies’ is used, rather than ‘the economy’, because of the prevalent false claim that there is only one type of economic system that is possible. We outline how the ecological crises is linked to the dominant drive for economic growth and the tendency to equate growth with progress and development; common even amongst those apparently critical of the need for continued growth in the materially rich countries. The unreality of mainstream economics is epitomised by the accolades given to those justifying mild reformist policy in response to human induced climate change in order to continue the pursuit of economic growth. We emphasise the structural aspects of economies as emergent from and dependent upon the structure and functioning of both society and ecology (energy and material flows). Finally, that the structure of the global economy must change to avoid social ecological collapse, poses the questions of how that can be achieved and what sort of economics is necessary? We explain the need for: (i) a structural change that addresses the currently dysfunctional relationships between economic, social and ecological systems, and (ii) an economics that is interdisciplinary and realist about its social and natural science relations.

Suggested Citation

  • Clive Spash & Tone Smith, 2019. "Of Ecosystems and Economies: Re-connecting Economics with Reality," SRE-Disc sre-disc-2019_03, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wiwsre:sre-disc-2019_03
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    File URL: https://www-sre.wu.ac.at/sre-disc/sre-disc-2019_03.pdf
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    References listed on IDEAS

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    9. Clive L. Spash, 2014. "Better Growth, Helping the Paris COP-out? Fallacies and Omissions of the New Climate Economy Report," SRE-Disc sre-disc-2014_04, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
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    16. Daly, Herman E, 1974. "The Economics of the Steady State," American Economic Review, American Economic Association, vol. 64(2), pages 15-21, May.
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    Cited by:

    1. Francesca Gambarotto & Marco Rangone & Stefano Solari, 2023. "Moral and Institutional Foundations of Sustainable Technological Entrepreneurship," Sustainability, MDPI, vol. 15(18), pages 1-12, September.
    2. Spash, Clive L., 2020. "A tale of three paradigms: Realising the revolutionary potential of ecological economics," Ecological Economics, Elsevier, vol. 169(C).
    3. Quinn, Terrance, 2021. "Lonergan’s Contribution to Ecological Economics," Ecology, Economy and Society - the INSEE Journal, Indian Society of Ecological Economics (INSEE), vol. 4(01), January.

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    Keywords

    growth; development; economics; ecosystems; thermodynamics; political economy; critical realism;
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