What is Green Economics?
Economists are not ecologists and ecologists are not economists. The same can be said for policy makers. Neither economists nor policy makers have studied the principles of ecology, nor integrate these principals into their work. Can we expect economists and policy makers to keep the environment in mind when making decisions concerning business actions and legislation?
Green economics integrates these professions as well as social and ecological values into the market. According to Brian Melani green economics “is the economics of the real world—the world of work, human needs, the Earth’s materials, and how they mesh together most harmoniously.” As its goal, green (or ecological) economics seeks to integrate our economic thinking with our physical being and everything which surrounds us. Simply it aims to restructure our economic design and promote the coexistence between our actions and ecological systems. Essentially, it is the idea that humans and our economies are part of a larger natural ecosystem. (Stephan Farber).
Traditionally, economics, or business, has been about the accumulation of wealth; the extraction of raw materials; manufacturing financially valuable products; and making a profit. Society has perfected this cycle for well over a century since the Industrial Revolution in the late 18th century. This current system can no longer be sustained.
The transformation doesn’t stop with or economic design, as we all know it is the consumers that drive the economy just as much as businesses do. We as consumers need to accept the shift towards a sustainable economy, if we expect to preserve nature’s capital.