Ecological economics is the study of relationships and interactions between economies and the ecosystems that support them. It is important to understand these relationships to understand what sustainability is and how it can be achieved.

Ecological economics is an interdisciplinary collaboration of economics, ecology and other social and natural sciences. A cross-disciplinary approach is necessary because conflicting perspectives in economics and ecology have led to economic and environmental policies that are mutually destructive, rather than reinforcing and sustainable.

Herman Daly, one of the founding members of the International Society for Ecological Economics, provides one of the best descriptions of ecological economics in this paper he presented at the CANSEE 2003 conference in Jasper, Alberta.

Ecological Economics: The Concept of Scale and Its Allocation to Allocation, Distribution and Uneconomic Growth.

The following identify some of the broad areas and particular questions of ongoing research and discussion within ecological economics:

Modeling
How can we better integrate economic and ecological models to address management of local bio diversity, an ocean fishery, or the climate services of the global atmosphere?

Equity
How does equity between individual people, nations, and over generations relate to sustainability?

Sustainability Indicators
Can we redirect development by augmenting traditional indicators such as GDP (gross domestic product) with biophysical indicators such as ecological footprint and social indicators such as the education of women?

Limits
What properties of ecological and social systems act as "limits" to development and to what extent can human-produced capital substitute for natural capital?

Trade & Development
How do current policies to promote development through capital mobility affect the control of natural resources, the ability of nations to manage environmental systems, and the distribution of well-being?

Valuation
To what extent can we measure the value of non-market services provided by ecosystems and how can we promote public discourse on environmental and social values that significantly enriches economic measures?

Policy Instruments
How should systems of tradable environmental permits and obligations, combined with environmental tax reform, be implemented?

For more information about ecological economics, including an online encyclopaedia about ecological economics, please visit the International Society of Ecological Economics website.