An interdisciplinary framework that seeks to merge the two historically separate fields of economics and ecology. It assumes that:
1) there is an inherent link between the health of the Earth’s ecosystem and the economic system created by human beings;
2) the economy is a subsystem of the earth’s ecological system; and
3) by understanding how each system flows into and out of the other, each can thrive and prosper.
Ecological Economics differs from Environmental Economics in that it places macroeconomics within the sphere of the earth’s ecosystem, whereas Environmental Economics sees the two as distinct.