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Comparison between current economic model, green economy model and ecological economic model

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The basic characteristics of the current economic model, the green economy model, and the ecological economics model. Looking for sustainable lifetysle in Malaysia? Click here to know more!

Current Economic Model Green Economy Model Ecological Economics Model
Primary Policy Goals More: Economic growth

in the conventional sense,

as measured by GDP.

The assumption is that

growth will ultimately

allow the solution of all

other problems. More is

always better.

More but with lower

environmental impact:

GDP growth

decoupled from

carbon and from other

material and energy

impacts.

Better: Focus must shift from

merely growth to “development”

in the real sense of improvement

in sustainable human well-being,

recognizing that growth has

significant negative by-products.

Primary measure

of progress

 

GDP Still GDP, but

recognizing impacts

on natural capital.

 

Index of Sustainable Economic

Welfare (ISEW), Genuine Progress

Indicator (GPI), or other

improved measures of real welfare.

Scale/carrying

capacity/role of

environment

 

Not an issue, since

markets are assumed to

be able to overcome any

resource limits via new

technology, and

substitutes for resources

are always available.

 

Recognized, but

assumed to be solvable

via decoupling.

 

A primary concern as a

determinant of ecological

sustainability. Natural capital and

ecosystem services are not

infinitely substitutable and real

limits exist.

Principles of

governance

 

Laissez-faire market

capitalism.

 

Recognition of the

need for government.

 

Lisbon principles of sustainable

governance.

Economic

efficiency/

allocation

The primary concern,

but generally including

only marketed goods and

services (GDP) and

market institutions.

Recognized to

include natural capital

and the need to

incorporate the value

of natural capital into

market incentives.

A primary concern, but including

both market and nonmarket

goods and services, and effects.

Emphasis on the need to

incorporate the value of natural

and social capital to achieve true

allocative efficiency.

Source: Adapted from Costanza et al. (2014a).

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