The economy as we know it is not a law of nature. It is a human construct, based on a set of assumptions, incentives, and institutions that have evolved over time. Yet today, these assumptions no longer serve the wellbeing of humanity or the living systems on which all life depends. As climate change, biodiversity loss, and social inequality converge in a polycrisis of planetary dysfunction, we must ask: what is the economy for?
The answer that mainstream economics offers is clear but increasingly untenable: growth. More specifically, economic growth measured in GDP—an indicator that fails to distinguish between value creation and value destruction. A clear-cut rainforest and an oil spill can increase GDP. So can a hospital visit caused by air pollution. Traditional economics reduces nature to “externalities,” prices the future at a discount, and assumes rational actors in a world of perfect information. It optimizes for efficiency in the pursuit of profit, not for justice, resilience, or long-term planetary health.
The Ecological Critique of Mainstream Economics
Ecological economics emerged in the late 20th century as a counterpoint to neoclassical economics, integrating ecological constraints and ethical considerations into economic thought. Pioneers like Herman Daly, Robert Costanza, Kenneth Boulding, and Nicholas Georgescu-Roegen questioned the core tenets of mainstream economic theory, especially the fantasy of infinite growth on a finite planet.
Boulding famously quipped, “Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.” Herman Daly built upon this with the concept of a “steady-state economy”—an economic system that remains within ecological limits while delivering a high quality of life. Ecological economists argue that economies must be embedded in, and dependent on, the Earth’s biophysical systems, not the other way around.
Reimagining Value and Progress
At the heart of the ecological economic paradigm is a redefinition of value. Instead of treating nature and people as mere inputs to production, we begin to see them as sacred and essential. Clean water, fertile soil, a stable climate, and vibrant communities are not luxuries or trade-offs—they are the foundations of real wealth.
This insight has given rise to multiple frameworks:
- The Circular Economy seeks to design waste out of the system, mimicking nature’s cyclical flows.
- Doughnut Economics, championed by Kate Raworth, visualizes a safe and just space for humanity bounded by ecological ceilings and social foundations.
- The Regenerative Economy, built on ecological principles and Indigenous wisdom, seeks to do less harm and actively heal and enhance living systems.
- The BioFi Initiative and similar efforts rethink finance itself, aiming to create a financial system that values biocapacity, ecosystem restoration, and long-term wellbeing.
Placing True Values on What Matters
What if we assigned meaningful value to what we actually want to preserve? What if we disincentivized destruction, rather than subsidizing it? For example, ending fossil fuel subsidies, implementing carbon pricing, and creating markets for ecosystem services are steps in this direction. Yet even these measures fall short without a fundamental shift in worldview.
In principle, transforming the economy should not be difficult—once we adopt a different set of premises. Humans are incredibly good at solving complex problems when the rules and goals are clear. The problem is not our capacity, but our operating assumptions. If we saw the Earth not as a storehouse of resources to be exploited but as a living system to be stewarded, we would design entirely different economic structures.
The Economy in Service to Life
Buckminster Fuller argued that with our existing technology, we could provide a high standard of living for everyone on the planet. The challenge is not technological feasibility—it is misaligned priorities. So long as we operate within the logic of traditional economics, we are locked into the business-as-usual trajectory described by the Limits to Growth study: overshoot, collapse, and systemic unraveling.
But there is another path. A regenerative economy is not only possible—it is already emerging. From agroecology to community land trusts, from cooperative finance to rewilding projects, the seeds of a new economic story are being sown. Our task is to nurture these seeds and shift the dominant narrative from extraction to regeneration.
We must move from an economy that extracts value from people and planet to one that creates conditions for all life to thrive. This is not a technical adjustment. It is a civilizational transformation—one that begins with how we think about economics, and ultimately, how we value life itself.
Reversing the Extractive Logic: Emerging Pathways to a Regenerative Economy
In the heart of British Columbia, the Kwax̧a̧la community has begun to chart a new course for economic development rooted in Indigenous knowledge, ecological stewardship, and shared prosperity. It is part of a growing wave of initiatives across the globe seeking to invert the destructive logic of extractive capitalism and restore the foundations of life: thriving ecosystems, strong communities, and equitable economies. These efforts are not mere resistance. They represent an evolutionary leap—a shift from degenerative to regenerative paradigms of value creation.
Here we explore the potential for regenerative economic models to displace ecologically and socially destructive systems, and the emerging role of technologies like artificial intelligence (AI) and blockchain in supporting this transition. It also examines the tension between reform and radical reconstruction and asks: how can we build a future where both people and the planet can flourish?
The Extractive System in Decline
For centuries, the dominant economic model has been one of extraction: value taken from land, labor, and life to generate private profit. From the colonial plantation economy to industrial capitalism and its fossil-fueled global supply chains, this model externalizes ecological and social costs. It rewards depletion, not regeneration.
Today, we are living with the consequences: escalating climate disasters, mass extinction, toxic pollution, and spiraling inequality. The extractive system is not just unethical—it is unsustainable. Its logic has reached a breaking point.
Regenerative Alternatives—From Vision to Practice
Across the world, communities are planting the seeds of a new economy. In British Columbia, the Kwax̧a̧la model centers Indigenous governance and ecological restoration, integrating cultural resurgence with local enterprise. In Barichara, Colombia, the Design School for Regenerating Earth has supported the formation of bioregional networks grounded in restoration, reciprocity, and resilience. These models challenge the assumption that economic development must come at the cost of ecological health.
Similar efforts are emerging in Australia, Aotearoa/New Zealand, and the United States, where Indigenous and settler communities are experimenting with land trusts, circular economies, and commons-based governance. These models reverse the flow of capital: wealth is generated not by degrading land and labor, but by regenerating them.
Digital Tools for a Regenerative Future
Technology, often complicit in the extractive model, can also be repurposed for regeneration.
AI has enormous potential for ecological monitoring, regenerative agriculture, and dynamic climate modeling. It can help optimize water use, increase carbon sequestration, and support biodiversity by identifying complex patterns in real time.
Blockchain technology can create transparent, decentralized systems for tracking value and trust. It is already being used to tokenize ecosystem services, authenticate regenerative practices, and support localized currencies and decentralized autonomous organizations (DAOs).
The key is design: these tools must be rooted in ethics, equity, and ecological awareness. When used with care and foresight, they can accelerate the shift to regenerative economies by making invisible value visible—and by decentralizing control.
Between Reform and Reconstruction
Reform alone cannot save us. While improving current systems is vital to reduce harm and buy time, the deep logic of extraction must be replaced. This means rebuilding institutions from the ground up: land tenure systems that recognize the rights of nature and future generations; financial systems that reward restoration, not exploitation; and governance systems that prioritize the commons over short-term profits.
Reconstruction involves risk. It challenges entrenched interests. But it also unleashes creativity and community agency. The choice is not between chaos and control, but between degeneration and regeneration.
Imagining the World That Could Be
Imagine the year 2100: Cities have been reimagined as ecological villages, powered by solar cooperatives and cooled by green infrastructure. Forests have regrown where clearcuts once scarred the land. Rivers run clean. Community currencies circulate alongside regenerative credits that measure the health of watersheds and soils.
AI acts not as a replacement for human wisdom, but as a partner in stewardship. Blockchain supports bioregional governance, ensuring transparency and inclusion. Local communities are not extractive colonies of global capital but thriving nodes of ecological intelligence.
This is not a utopia. It is a possible planet—if we choose to build it.
The regenerative economy is not a fantasy. It is emerging in the cracks of the old system. It is being grown, tested, and refined by communities like Kwax̧a̧la, Barichara, and others across the world.
As William Gibson observed, “The future is already here—it’s just not evenly distributed.” Our task is to spread it wisely and widely. The tools are in our hands. The time is now.