Economics and the Finite Planet: Evolving Paradigms of Resources and Sustainability

DOI

10.2991/978-2-38476-615-4_19How to use a DOI?

Keywords

Sustainability; Resource; Paradigms; Ecological Economics; Environmental Economics

Abstract

Traditional business concepts based on unlimited natural resources are being replaced by ecological analysis of fixed biophysical foundations, as demonstrated by ongoing shifts in resource and sustainable development paradigms. This paper examines significant paradigm shifts in economic theory regarding the relationship between the economy and the environment. Historically, mainstream economics excluded nature from its central models, operating under the implicit assumption of infinite resource availability and unlimited waste absorption capacity. In response to escalating ecological crises and conceptual advances, a “finite foundation” paradigm has emerged, which recognises biophysical limits as the primary boundary condition for economic activity. The present study utilises descriptive-analytical methodology based on the historical development of economic theory and conceptual analysis. The analysis contrasts the core principles of ecological economics and neoclassical environmental economics using a comparative paradigm framework. The study also integrates concepts from thermodynamics, ecology, and Earth system science, synthesising insights from interdisciplinary literature. Although the Neoclassical tradition offers essential tools for efficient allocation, it demonstrates a significant limitation in addressing the overall scale of the economy and its reliance on irreplaceable natural capital. In contrast, Ecological Economics reintegrates the economy within the ecosphere by emphasising sustainable scale and equitable distribution, grounded in thermodynamic principles. The findings indicate that contemporary frameworks, such as Planetary Boundaries, provide the scientific foundation for the “finite foundation” paradigm. This shift requires a move from incremental policy adjustments to comprehensive economic transformation, with a focus on qualitative development within established ecological limits. The central theoretical and practical challenge for modern economics remains the incomplete realisation of this paradigm shift.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Monica
AU  - Ajit Singh
AU  - Rashmi Chaudhary
PY  - 2026
DA  - 2026/09/15
TI  - Economics and the Finite Planet: Evolving Paradigms of Resources and Sustainability
BT  - Proceedings of the Anubhuti 4.0: Discourses in Indian Knowledge Systems – Pathways of Culture, Inclusion, and Sustainability (ICIKS 2026)
PB  - Atlantis Press
SP  - 254
EP  - 266
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-615-4_19
DO  - 10.2991/978-2-38476-615-4_19
ID  - 2026
ER  -