Regenerative economic theory
Regenerative economics is an economic system that works to regenerate capital assets. A capital asset is an asset that provides goods and/or services that are required for, or contribute to, our well being. In standard economic theory, one can either “regenerate” one's capital assets or consume them until the point where the asset cannot produce a viable stream of goods and/or services. What sets regenerative economics apart from standard economic theory is that it takes into account and gives hard economic value to the principal or original capital assets — the earth and the sun. We cannot do much to affect the sun although we can value access to the sun in such areas where access can be influenced. Therefore, most of Regenerative Economics focuses on the earth and the goods and services it supplies.
Regenerative economics is completely comfortable within the capitalist economic framework. Recognizing the earth as the original capital asset places the true value on the human support system known as the environment. Not having this original value properly recognized has created the unsustainable economic condition referred to as uneconomic growth, a phrase coined by Prof. Herman Daly, as stated in the book Reshaping the Built Environment.[1] The authors of the regenerative economic theory believe that uneconomic growth is the opposite of regenerative economics.
References
- ↑ Reshaping the Built Environment, edited by Charles J. Kibert, Forward by Alex Wilson, Written by Herman E. Daly Copyright 1999, Island Press ISBN 1-55963-701-3, ISBN 1-55963-702-1, Chapter 5 Uneconomic Growth and the Built Environment, In Theory and in Fact. pages 73–88
