Regenerative economics is an economic system that works to regenerate

capital assets A capital asset is defined as property of any kind held by an assessee, whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property, movable or immovable, tangible or int ...

. A capital asset is an asset that provides goods and/or services that are required for, or contribute to, our

well-being Well-being, or wellbeing, also known as wellness, prudential value or quality of life, refers to what is intrinsically valuable relative ''to'' someone. So the well-being of a person is what is ultimately good ''for'' this person, what is in t ...

. In standard

economic theory Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyze ...

, 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 Earth is the third planet from the Sun and the only astronomical object known to harbor life. While large volumes of water can be found throughout the Solar System, only Earth sustains liquid surface water. About 71% of Earth's surf ...

and the

sun The Sun is the star at the center of the Solar System. It is a nearly perfect ball of hot plasma, heated to incandescence by nuclear fusion reactions in its core. The Sun radiates this energy mainly as light, ultraviolet, and infrared rad ...

. Most of regenerative economics focuses on the earth and the

goods and services Goods are items that are usually (but not always) tangible, such as pens, physical books, salt, apples, and hats. Services are activities provided by other people, who include architects, suppliers, contractors, technologists, teachers, doc ...

it supplies. Regenerative economics is based on the notion of the earth, as the original capital asset, places the true value on the human support system known as the

environment Environment most often refers to: __NOTOC__ * Natural environment, all living and non-living things occurring naturally * Biophysical environment, the physical and biological factors along with their chemical interactions that affect an organism or ...

. Not having this original value properly recognized has created the unsustainable economic condition referred to as

uneconomic growth Uneconomic growth is economic growth that reflects or creates a decline in the quality of life. The concept is used in human development theory, welfare theory, and ecological economics. It is usually attributed to ecological economist Her ...

, a phrase coined by leading ecological economist and steady-state theorist

Herman Daly Herman Edward Daly (July 21, 1938 – October 28, 2022) was an American ecological and Georgist economist and professor at the School of Public Policy of University of Maryland, College Park in the United States, best known for his time as a sen ...

, as stated in the book Reshaping the Built ''Environment: Ecology, Ethics, and Economics''.Reshaping the Built Environment, edited by Charles J. Kibert, Foreword by Alex Wilson, Written by Herman E. Daly Copyright 1999, Island Press , , Chapter 5 Uneconomic Growth and the Built Environment, In Theory and in Fact. pages 73–88 The authors of the regenerative economic theory believe that uneconomic growth is the opposite of regenerative economics.

Also see

* Circular economy

References

{{Reflist

External links

Capital InstituteNet energy analysis Encyclopedia of Earth
Ecological economics Environmental economics Economic theories