Ecological economics

Ecological economics can broadly be understood as “economics for sustainable development.” It is suggested that mainstream neoclassical economics, while having a role as part of a pluralist perspective, is not enough in our attempts to deal constructively with climate change and other elements of the sustainability challenge. Economics needs to be framed in alternative ways and the close to monopoly position of neoclassical theory abandoned. In the present chapter, the focus of neoclassical theory and method on the monetary dimension, so-called monetary reductionism, is questioned, and a multidimensional analysis of a particular kind, positional analysis, is recommended. It is furthermore argued that economics, whether neoclassical or other, is always political economics. Values and ideological orientations are necessarily involved. This in turn suggests that democracy has to be taken seriously when defining economics and in economic analysis. It is proposed that economics be defined as “multidimensional management of resources in a democratic society.” Individuals and organisations are understood as political actors and are assumed to be guided by their ideological orientation or mission. Strengthening democracy is judged to be one path to a sustainable national and global society.