GEF

Unit 7  |  The Economics of Sustainability 151 7.4  Ecological Economics Recognizing the unsustainable nature of standard market economics, economists such as Herman Daly developed ecological economics . In contrast to traditional economics, ecological economics treats ecosystems—rather than mar- kets—as the basis of the real economy. In ecological economics, the market economy is defined as a subsystem of the global ecosystem. In other words, nature and its processes represent the fundamental capital on which life is dependent. Ecological economists find many faults with classical econom- ics. First, they point out that economic markets generally do not include costs for environmental damage or resource depletion. For example, in the coal market, labor and equipment costs ECOLOGICAL ECONOMICS An approach to economics that integrates the Earth’s natural systems, human values, and human health and wellbeing with the market economy. WATCH & LEARN http://bit.ly/2qlyjTF Watch the video and respond to the questions below. 1. Why does the United States Conservation Reserve Program collectively pay farmers? 2. How does putting a value on ecosystem services affect sustainability? 3. How do Costa Rican farmers work with their government? video: Valuing Ecosystem Services