Environmental and Natural Resource Economics 3rd ed. Jonathan M Environmental and Natural Resource Economics 3rd ed. Jonathan M. Harris and Brian Roach Chapter 7 – Ecological Economics: Basic Concepts Copyright © 2013 Jonathan M. Harris

Growing Economic Subsystem Population and Goods Produced Figure 7.1a: The Economic Subsystem Relative to the Global Ecosystem (Small Scale) Solar Energy Finite Global Ecosystem Growing Economic Subsystem Population and Goods Produced Energy Energy Source Functions Sink Functions Resources Waste As discussed in Chapter 1, the economic system needs to be viewed in the context of the finite global ecosystem. Recycled Matter Waste Heat Source: Goodland, Daly, and El Serafy, 1992, p. 5.

Growing Economic Subsystem Population and Goods Produced Figure 7.1b: The Economic Subsystem Relative to the Global Ecosystem (Large Scale) Solar Energy Finite Global Ecosystem Growing Economic Subsystem Population and Goods Produced Energy Energy Source Functions Sink Functions Resources Waste As the economic system grows, it presses up against the limits of the global ecosystem Recycled Matter Waste Heat Source: Goodland, Daly, and El Serafy, 1992, p. 5.

Figure 7.2: Ecological-Economic Model of Brabant, the Netherlands A combined economic-ecological model shows many interactive flows between elements of the systems. Source: Adapted from Braat and Steetskamp, 1991, p. 283.