New Business Models: Circularity

• These stories mark a clear shift: ecological economics is gaining traction beyond academia into practical policy, local governance, and public debate.
• They illustrate a growing understanding that ecological limits, wellbeing economies, and economic justice are interconnected.
• Policy relevance spans from UK planning reforms to farm incentives in Europe, and local governance models in places like Sweden.

Tomelilla, Sweden Adopts Doughnut Economics

• Tomelilla, a small Swedish town, implemented Kate Raworth’s doughnut economics framework in municipal planning—embedding ecological ceilings and social foundations into budgeting, urban design, transport, and procurement.

Impact:

• • Shifted decision‑making toward regenerative and low‑carbon pathways (e.g., refurbishing instead of building anew, free public transit for youth).
  • Showcased how even small municipalities can prioritize wellbeing within planetary limits.
  • Inspired other cities and municipalities globally to explore similar sustainable economic models.

Op‑ed: Environmental Protection As Economic Gain (Australia)

• Economist Nicki Hutley argued that preserving nature and fighting climate change deliver clear net economic benefits—from cost savings in avoided climate disasters to job creation in clean energy.

Impact:

• • Strengthened the narrative that ecological stewardship supports, rather than hinders, economic prosperity.
  • Highlighted reduced solar panel prices and high costs of inaction (~US $143 billion/year) as economic logic for transition.
  • Supports momentum for policy reforms such as carbon pricing and nature‑inclusive planning in Australia and worldwide.

UK’s Planning Bill Nature Levy Faces Blowback

•  UK’s proposed “nature levy” would let developers pay to bypass environmental protections. Economists and ecologists—including Partha Dasgupta—warned this creates a “license to kill nature.”

Impact:

• • Raised alarm about weakening environmental safeguards and undermining ecological integrity in planning.
  • Pressured policymakers to revisit or withdraw the provision, emphasizing need for independent regulation and systemic reform.
  • Reframed ecological economics as crucial for aligning development with planetary boundaries.

Academic & Policy Developments

ISEE Launches Special Issue on Ecological Macroeconomics

When: Call opened June 18, 2025 (submissions open July 1, 2025)

• The International Society for Ecological Economics (ISEE) invited papers exploring integrated ecological‑macroeconomic models to understand post-growth futures, climate policy, and inequality.

Impact:

• • Encourages development of models that capture economic–ecological–social feedbacks.
  • Supports transition from conventional GDP-focused narratives toward wellbeing‑oriented policymaking.

IIASA Study: Economic Gains from Mining Quickly Fade

Researchers found that while industrial mining brings short-term economic boosts, benefits fade once global prices dip—even affecting neighboring regions.

Impact:

• • Highlights ecological-economic vulnerability linked to commodity dependence.
  • Supports policy emphasis on diversified, nature-aligned development pathways instead of extractivism.

Modelling Biodiversity & Pesticide Use Relative to Farm Size

The paper introduces a spatial ecological-economic framework showing small‑to‑mid‑size farms benefit economically from reduced pesticide use combined with habitat restoration, whereas large farms struggle to do so.

Impact:

• • Informs policy design: environmental incentives should be tailored to farm structure.
  • Promotes biodiversity via cost-effective, scale‑specific strategies for pest control and sustainability.

Summary Table