The circular economy and doughnut economics apply ecological economics by treating the economy as dependent on society and the finite biosphere. Both seek to meet human needs within ecological limits.
This is HL-only content from subtopic HL.b Environmental economics, especially understanding HL.b.17.
The Underlying Mechanism
Ecological economics views the economy as a subsystem of Earth’s biosphere and society. Economic activity cannot expand indefinitely because the biosphere imposes limits, including resource depletion, climate change and biodiversity loss.
The models apply this principle:
| Model | Application of ecological economics | Main sustainability outcome |
|---|---|---|
| Circular economy | Replaces the linear “take, make, dispose” system with three principles: eliminating waste and pollution, circulating products and materials, and regenerating nature. | Reduces resource inputs and waste outputs while promoting eco-economic decoupling. |
| Doughnut economics | Places a social foundation, representing essential human needs, inside an ecological ceiling based on planetary limits. | Defines a safe and just space where human well-being is achieved without exceeding Earth’s ecological capacity. |
Repairing and remanufacturing electronics keeps materials circulating and reduces mining and electronic waste. However, circularity is not automatically sustainable if total production and energy use keep rising.
Amsterdam uses the doughnut framework to assess housing, health and equity alongside carbon emissions and material consumption. This links sustainability to environmental justice: ecological limits should not deny poorer groups access to basic needs.
A common misconception is that these models merely make conventional growth “greener.” Ecological economics may instead question continual growth and support slow, zero or negative growth where consumption already exceeds ecological limits.
Exam Technique
In an IB ESS HL response, define ecological economics and explain how each model embeds the economy within ecological limits. For compare and contrast, address both throughout; for evaluate, include limitations, a named example and a supported conclusion.
