IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i18p10460-d639411.html
   My bibliography  Save this article

The Foundational Economy as a Cornerstone for a Social–Ecological Transformation

Author

Listed:
  • Richard Bärnthaler

    (Department of Socioeconomics, Institute for Multi-Level Governance and Development, Vienna University of Economics and Business, Welthandelsplatz 1/D4, 1020 Vienna, Austria)

  • Andreas Novy

    (Department of Socioeconomics, Institute for Multi-Level Governance and Development, Vienna University of Economics and Business, Welthandelsplatz 1/D4, 1020 Vienna, Austria)

  • Leonhard Plank

    (Department of Spatial Planning, Centre of Public Finance and Infrastructure Policy, Technical University of Vienna, Resselgasse 5/2/3, 1040 Vienna, Austria)

Abstract

This theoretical paper synthesises research on the foundational economy and its contribution to a social–ecological transformation. While foundational thinking offers rich concepts and policies to transition towards such transformation, it fails to grasp the systematic non-sustainability of capitalism. This weakness can be overcome by enriching contemporary foundational thinking with feminist and ecological economics. Whereas the feminist critique problematises foundational thinking’s focus on paid labour, the ecological critique targets Sen’s capability approach as a key inspiration of foundational thinking, arguing that a theory of human needs is better suited to conceptualise wellbeing within planetary boundaries. Based on this, we outline a novel schema of economic zones and discuss their differentiated contributions to the satisfaction of human needs. By privileging need satisfaction, such broadened foundational thinking demotes the tradable sector and rentier economy, thereby revaluating unpaid work as well as respecting ecological imperatives. This empowers new articulations of social and ecological struggles to improve living conditions in the short run, while having the potential in the long run to undermine capitalism from within.

Suggested Citation

  • Richard Bärnthaler & Andreas Novy & Leonhard Plank, 2021. "The Foundational Economy as a Cornerstone for a Social–Ecological Transformation," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10460-:d:639411
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/18/10460/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/18/10460/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307.
    2. Kenneth Reinert, 2011. "No Small Hope: The Basic Goods Imperative," Review of Social Economy, Taylor & Francis Journals, vol. 69(1), pages 55-76.
    3. David Rosnick & Mark Weisbrot, 2006. "Are Shorter Work Hours Good for the Environment? A Comparison of U.S. and European Energy Consumption," CEPR Reports and Issue Briefs 2006-32, Center for Economic and Policy Research (CEPR).
    4. Yannick Oswald & Anne Owen & Julia K. Steinberger, 2020. "Publisher Correction: Large inequality in international and intranational energy footprints between income groups and across consumption categories," Nature Energy, Nature, vol. 5(4), pages 349-349, April.
    5. Luca Calafati & Julie Froud & Colin Haslam & Sukhdev Johal & Karel Williams, 2021. "Diversity in leading and laggard regions: living standards, residual income and regional policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(1), pages 117-139.
    6. Elke Pirgmaier & Julia K. Steinberger, 2019. "Roots, Riots, and Radical Change—A Road Less Travelled for Ecological Economics," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    7. Gough, Ian, 2020. "The case for Universal Basic Services," LSE Research Online Documents on Economics 107815, London School of Economics and Political Science, LSE Library.
    8. Yannick Oswald & Anne Owen & Julia K. Steinberger, 2020. "Large inequality in international and intranational energy footprints between income groups and across consumption categories," Nature Energy, Nature, vol. 5(3), pages 231-239, March.
    9. Ian Gough, 2015. "Climate change and sustainable welfare: the centrality of human needs," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(5), pages 1191-1214.
    10. Giulio Mattioli, 2017. "‘Forced Car Ownership’ in the UK and Germany: Socio-Spatial Patterns and Potential Economic Stress Impacts," Social Inclusion, Cogitatio Press, vol. 5(4), pages 147-160.
    11. Corinna Dengler & Birte Strunk, 2018. "The Monetized Economy Versus Care and the Environment: Degrowth Perspectives On Reconciling an Antagonism," Feminist Economics, Taylor & Francis Journals, vol. 24(3), pages 160-183, July.
    12. Plank, Christina & Liehr, Stefan & Hummel, Diana & Wiedenhofer, Dominik & Haberl, Helmut & Görg, Christoph, 2021. "Doing more with less: Provisioning systems and the transformation of the stock-flow-service nexus," Ecological Economics, Elsevier, vol. 187(C).
    13. Gough, Ian, 2019. "Universal Basic Services: a theoretical and moral framework," LSE Research Online Documents on Economics 101051, London School of Economics and Political Science, LSE Library.
    14. Daniel W. O’Neill & Andrew L. Fanning & William F. Lamb & Julia K. Steinberger, 2018. "A good life for all within planetary boundaries," Nature Sustainability, Nature, vol. 1(2), pages 88-95, February.
    15. Brand-Correa, Lina I. & Steinberger, Julia K., 2017. "A Framework for Decoupling Human Need Satisfaction From Energy Use," Ecological Economics, Elsevier, vol. 141(C), pages 43-52.
    16. Margaret Haderer, 2020. "Revisiting the Right to the City, Rethinking Urban Environmentalism: From Lifeworld Environmentalism to Planetary Environmentalism," Social Sciences, MDPI, vol. 9(2), pages 1-13, February.
    17. Daniel Hausknost & Willi Haas, 2019. "The Politics of Selection: Towards a Transformative Model of Environmental Innovation," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    18. Baxter, J. L. & Moosa, I. A., 1996. "The consumption function: A basic needs hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 85-100, October.
    19. Ian Gough, 2017. "Heat, Greed and Human Need," Books, Edward Elgar Publishing, number 16991, March.
    20. François-Xavier Devetter & Sandrine Rousseau, 2011. "Working Hours and Sustainable Development," Review of Social Economy, Taylor & Francis Journals, vol. 69(3), pages 333-355, September.
    21. Sen, Amartya, 1999. "Commodities and Capabilities," OUP Catalogue, Oxford University Press, number 9780195650389.
    22. Jeroen C. J. M. van den Bergh, 2017. "A third option for climate policy within potential limits to growth," Nature Climate Change, Nature, vol. 7(2), pages 107-112, February.
    23. Julie Froud & Colin Haslam & Sukhdev Johal & Karel Williams, 2020. "(How) does productivity matter in the foundational economy?," Local Economy, London South Bank University, vol. 35(4), pages 316-336, June.
    24. Juliet B. Schor, 2005. "Sustainable Consumption and Worktime Reduction," Journal of Industrial Ecology, Yale University, vol. 9(1‐2), pages 37-50, January.
    25. Jalas, Mikko, 2002. "A time use perspective on the materials intensity of consumption," Ecological Economics, Elsevier, vol. 41(1), pages 109-123, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Federica Viganò, 2023. "The Climate Financialization Trap: Claiming for Public Action," Sustainability, MDPI, vol. 15(6), pages 1-7, March.
    2. Raza, Werner, 2024. "Towards a progressive industrial policy for the twin transformation in the European Union: Synthesis report," Research Reports 21/2025, Austrian Foundation for Development Research (ÖFSE).
    3. Bärnthaler, Richard, 2024. "Problematising degrowth strategising: On the role of compromise, material interests, and coercion," Ecological Economics, Elsevier, vol. 223(C).
    4. Ewa Dziwok & Johannes Jäger, 2021. "A Classification of Different Approaches to Green Finance and Green Monetary Policy," Sustainability, MDPI, vol. 13(21), pages 1-15, October.
    5. Thomas SJ Smith, 2023. "Mapping complexity in deglobalisation: A typology of economic localisms from ‘hyper-localism’ to ‘strategic autonomy’," Local Economy, London South Bank University, vol. 38(3), pages 242-263, May.
    6. Richard Bärnthaler & Andreas Novy & Lea Arzberger & Astrid Krisch & Hans Volmary, 2024. "The power to transform structures: power complexes and the challenges for realising a wellbeing economy," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    7. Tatjana Neuhuber & Antonia E. Schneider, 2025. "Stratification of Livability: A Framework for Analyzing Differences in Livability Across Income, Consumption, and Social Infrastructure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 177(3), pages 1051-1080, April.
    8. Vogel, Jefim & Guerin, Gauthier & O'Neill, Daniel W. & Steinberger, Julia K., 2024. "Safeguarding livelihoods against reductions in economic output," Ecological Economics, Elsevier, vol. 215(C).
    9. Hickel, Jason & Sullivan, Dylan, 2024. "How much growth is required to achieve good lives for all? Insights from needs-based analysis," World Development Perspectives, Elsevier, vol. 35(C).
    10. Riepl, Tobias & Schaffartzik, Anke & Grabow, Simon & Banabak, Selim, 2025. "Living well with the foundational economy: Assessing the spatial accessibility of foundational infrastructures in Vienna and the relationship to socio-economic status," Ecological Economics, Elsevier, vol. 232(C).
    11. Hickel, Jason & Sullivan, Dylan, 2024. "How much growth is required to achieve good lives for all? Insights from needs-based analysis," LSE Research Online Documents on Economics 124460, London School of Economics and Political Science, LSE Library.
    12. Bärnthaler, Richard & Gough, Ian, 2023. "Provisioning for sufficiency: envisaging production corridors," LSE Research Online Documents on Economics 119420, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tallgauer, Maximilian & Schank, Christoph, 2024. "Challenging the growth-prosperity Nexus: Redefining undergraduate economics education for the Anthropocene," Ecological Economics, Elsevier, vol. 216(C).
    2. Foramitti, Joël, 2023. "A framework for agent-based models of human needs and ecological limits," Ecological Economics, Elsevier, vol. 204(PA).
    3. Smetschka, Barbara & Wiedenhofer, Dominik & Egger, Claudine & Haselsteiner, Edeltraud & Moran, Daniel & Gaube, Veronika, 2019. "Time Matters: The Carbon Footprint of Everyday Activities in Austria," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    4. Millward-Hopkins, Joel & Hickel, Jason & Nag, Suryadeepto, 2025. "Is growth in consumption occurring where it is most needed? An empirical analysis of current energy and material trends," LSE Research Online Documents on Economics 128547, London School of Economics and Political Science, LSE Library.
    5. Bärnthaler, Richard & Gough, Ian, 2023. "Provisioning for sufficiency: envisaging production corridors," LSE Research Online Documents on Economics 119420, London School of Economics and Political Science, LSE Library.
    6. Katharina Bohnenberger, 2020. "Money, Vouchers, Public Infrastructures? A Framework for Sustainable Welfare Benefits," Sustainability, MDPI, vol. 12(2), pages 1-30, January.
    7. Baltruszewicz, Marta & Steinberger, Julia K. & Paavola, Jouni & Ivanova, Diana & Brand-Correa, Lina I. & Owen, Anne, 2023. "Social outcomes of energy use in the United Kingdom: Household energy footprints and their links to well-being," Ecological Economics, Elsevier, vol. 205(C).
    8. Elke Pirgmaier & Julia K. Steinberger, 2019. "Roots, Riots, and Radical Change—A Road Less Travelled for Ecological Economics," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    9. Joel Millward-Hopkins & Vivien Fisch-Romito & Sascha Nick & Emile Chevrel, 2025. "Energy requirements for securing wellbeing in Switzerland and the space for affluence and inequality," Nature Communications, Nature, vol. 16(1), pages 1-12, December.
    10. Virág, Doris & Wiedenhofer, Dominik & Baumgart, André & Matej, Sarah & Krausmann, Fridolin & Min, Jihoon & Rao, Narasimha D. & Haberl, Helmut, 2022. "How much infrastructure is required to support decent mobility for all? An exploratory assessment," Ecological Economics, Elsevier, vol. 200(C).
    11. Riepl, Tobias & Schaffartzik, Anke & Grabow, Simon & Banabak, Selim, 2025. "Living well with the foundational economy: Assessing the spatial accessibility of foundational infrastructures in Vienna and the relationship to socio-economic status," Ecological Economics, Elsevier, vol. 232(C).
    12. Amsale K. Temesgen, 2020. "Building an Island of Sustainability in a Sea of Unsustainability? A Study of Two Ecovillages," Sustainability, MDPI, vol. 12(24), pages 1-27, December.
    13. Mundaca, Luis & Wamsler, Christine, 2025. "Engaging high-income earners in climate action: Policy insights from survey experiments," Ecological Economics, Elsevier, vol. 227(C).
    14. O'Garra, Tanya & Fouquet, Roger, 2022. "Willingness to reduce travel consumption to support a low-carbon transition beyond COVID-19," Ecological Economics, Elsevier, vol. 193(C).
    15. Huwe, Vera & Krahé, Max & Sigl-Glöckner, Philippa, 2021. "Effektiv und mehrheitsfähig? Der Emissionshandel auf dem Prüfstand," Papers 277891, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    16. Stefano Di Bucchianico & Federica Cappelli, 2021. "Exploring the theoretical link between profitability and luxury emissions," Working Papers PKWP2114, Post Keynesian Economics Society (PKES).
    17. Pirgmaier, Elke, 2021. "The value of value theory for ecological economics," Ecological Economics, Elsevier, vol. 179(C).
    18. Benedikt Bruckner & Klaus Hubacek & Yuli Shan & Honglin Zhong & Kuishuang Feng, 2022. "Impacts of poverty alleviation on national and global carbon emissions," Nature Sustainability, Nature, vol. 5(4), pages 311-320, April.
    19. Tong, Kangkang & Sun, Shuyu, 2024. "Multi-dimensional decoupling analysis in the context of energy use: Dynamic well-being, resource, and impact decoupling relationships in China," Applied Energy, Elsevier, vol. 359(C).
    20. Cappelli, Federica & Di Bucchianico, Stefano, 2025. "What is the role of profit and luxury consumption in the ecological transition?," Economic Modelling, Elsevier, vol. 147(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:18:p:10460-:d:639411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.