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The Triangular Economy: Behind the Circular Flows

By Brian Czech

The “circular economy” is a response to the environmental problems and resource shortages that arise as the human economy expands. The focus of the circular economy literature is on efficiency which, in terms of economic production, means more output per unit of input. All else equal, increasing efficiency means higher profits, too. That’s real motivation for the corporation.

Efficiency connects to the human propensity to innovate, too. From childhood on,


Meaning and Ethics in Ecological Economics

By Haydn Washington

The True Meaning of Ecological Economics

Ecological economics has a problem: Pluralism is out of control, to the extent that “ecological economics” is starting to mean different methods, approaches, and values to different people. We need to know precisely what we mean by “ecological economics,” and to settle upon an ethical framework thereof.

The original thinkers in ecological economics, such as Herman Daly, were clear that ecological economics was an economics that operated within ecological limits.


A Journey of No Return, Not a Circular Economy

By Herman Daly

The economic process is not a mechanical analog that can be run forward and backward, nor a circular process that can return to any previous state. Rather it is an irreversible and irrevocable process moving in the direction of time’s arrow of increasing entropy [1]. Finitude and entropy guarantee that the economic life of our species will be a journey of no return. Therefore even a stationary economy, in the classical sense of constant population and constant capital stock, is ultimately a journey of no return, because the metabolic throughput of matter and energy required to maintain constant stocks of people and physical capital, in the face of depreciation and death, is an entropic flow from ever less concentrated sources to ever filling sinks – and both sources and sinks are finite.