Human beings are both the slaves and the masters of the ecosystems in
which they live. This paper examines the interrelationship between eco
nomic decision-making hierarchies and ecological hierarchies. Conditio
ns under which discontinuous changes can occur are presented both for
top-down and bottom-up causes. Appropriate institutional arrangements
for minimizing ecological disruption are analyzed and depend on the na
ture of the relationship between the economic and ecological hierarchi
es. In some cases this will involve self-managed economic units operat
ing at the appropriate level of the ecological hierarchy.