Mainstream economics toolkit within the ecological economics framework

Development of ecological economics was a response to the environmental crisis born by the economic growth. Ecological economics, in contrast to mainstream economics, is characterized by value pluralism and interdisciplinary approach that makes it hard to achieve methodological unanimity. This paper considers if the mainstream methods could be used to tackle environment problems effectively. To this purpose, the integrated macro model is proposed. It suggests that all environment externalities could be accounted in the existing production-consumption system. So using the new ideology based on ecological economics priorities and applying the toolkit of mainstream economics, we could transform the existing pricing system and provide effective institutional reforms to ensure sustainable development.