Institutional and Ecological Economics: The Role of Technology and Institutions in Economic Development

Abstract

This paper examines the roles of institutions and technology in economic development from the institutionalist perspective as well as from that of ecological economists who are concerned with sustainability of development. Both schools are critical of mechanistic, deterministic models used in neoclassical economics, of over reliance on market solutions, and of “value free” economics. Both use biological metaphors to describe the operation of economies. But there are important differences in how ecological and institutional economists have approached growth and development, primarily whether technology and human knowledge are inherently leading to destructive consequences and whether natural forces or institutions are the ultimate constraint to economic growth.

Keywords::

• technology
• institutions
• development
• sustainability
• ecological