Longread WUR: Another view of the economy

The way we think about economics is in need of change, argue three economists from Wageningen University & Research. A longread shows how Eveline van Leeuwen (professor of Urban Economics), Fransisco Alpízar (chair holder of the Environmental Economics and Natural Resources Group) and Hans van Meijl (chief economist) argue for a shift from focusing on economic growth to putting human well-being and ecological limits at the centre.

Economics should not be an aim in itself, but a tool for human and ecological well-being. This also calls for new metrics that not only look at outputs like GDP, but also value human and natural capital.

Another important item is the need for more normativity in decision-making. Technological solutions alone are not enough. Examples like car-free cities show that sustainable choices must also be socially driven. Models like MAGNET clarify the consequences of policy choices by quantitatively calculating sustainability, food security and inequality.

In addition, Van Leeuwen, Alpízar and Van Meijl also see the key role financial institutions play in the transition, provided they can count on stable and forward-looking policies. To truly flourish, the economists argue, we need an economy that approaches people, nature and society in conjunction.

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