Doughnut economics.
"Far from being a closed, circular loop, the economy is an open system with constant inflows and outflows of matter and energy. The economy depends upon Earth as a source—extracting finite resources such as oil, clay, cobalt and copper, and harvesting renewable ones such as timber, crops, fish and fresh water. The economy likewise depends upon Earth as a sink for its wastes—such as greenhouse gas emissions, fertiliser run-off and throwaway plastics. Earth itself, however, is a closed system because almost no matter leaves or arrives on this planet: energy from the sun may flow through it, but materials can only cycle within it.” Kate Raworth, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist.
Doughnut Economics is an economic model developed by Kate Raworth, an economist at the University of Oxford and the University of Cambridge. The model aims to address the shortcomings of traditional economic systems by integrating social and environmental sustainability into economic thinking. Here are the key components of Doughnut Economics:
The model is visually represented by a doughnut-shaped diagram with two concentric rings:
- The inner ring: This represents the "social foundation," which includes the minimum standards of living necessary for people to lead a good life. These are based on the United Nations Sustainable Development Goals (SDGs) and include aspects such as food, water, health, education, income, and political voice.
- The outer ring: This represents the "ecological ceiling," which encompasses the planetary boundaries within which humanity can safely operate. Crossing this boundary leads to environmental degradation and ecological collapse, including issues like climate change, biodiversity loss, and ocean acidification.
The area between the inner and outer rings is the "safe and just space for humanity." Within this space, people can meet their needs and live a good life without depleting the planet's resources or causing ecological harm.
Key principles:
- Move away from the obsession with GDP growth and towards a focus on meeting human needs and staying within ecological limits.
- Integrate ecological and social considerations into economic decision-making.
- Encourage behaviours that promote cooperation and shared prosperity rather than just individual wealth accumulation.
- Understand and manage the complex, interconnected systems of the economy, society, and environment.
- Create economies that distribute resources and opportunities more equitably.
- Develop regenerative economic practices that restore and renew natural resources rather than depleting them.
- Focus on achieving balance rather than pursuing endless economic growth.
Implications and applications:
- Governments can use the doughnut model to create policies that balance social and environmental goals.
- Businesses can integrate doughnut principles into their operations to become more sustainable and socially responsible.
- Cities and local communities can adopt the model to develop in a way that supports human well-being and environmental health.
Overall, doughnut economics offers a comprehensive framework for thinking about economic development in the 21st century, emphasising sustainability, equity, and well-being over mere financial growth.
[edit] Related articles on Designing Buildings
- Cost plans for construction projects.
- Circular economy.
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- Design economics.
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- Life cycle in the built environment.
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