NICHE DIVERSIFICATION IN ENVIRONMENTAL ECOLOGICAL ECONOMICS

This paper is devoted to the identification and comparison of the nich es of neoclassical environmental economics (NEE) and ecological econom ics (ECO). It is presented in four sections. Section 1 argues that the existing literature docs not make the differences and relations betwe en the sister disciplines neatly transparent. Section 2 critically exa mines the antecedents of the subjects with reference to three structur al dimensions, such as scarcity perception, problem-solving orientatio n and range of integration. Section 3 collates the elements and reform ulates the definitions. Section 4 is a coda on the essay. The divide b etween the paradigms which came to the surface during the 1960s became prominent through the ''growth controversy'' of the subsequent decade . The controversy over the need for change of economic theory to cope with the growing intensity of environmental uncertainty makes the disc iplines sore about each other. The neoclassical paradigm comprising of elements like relative scarcity, allocative approach, market correcti on and technological optimism characterises NEE. The distinguishing ch aracteristics of ECO include thermodynamic irreversibility, absolute s carcity, economy-ecosystem symbiosis, biophysical approach, ecological stewardship and prudent pessimism. The niches are competitive and com plementary in some respects, and thus provide a unique example of frui tful niche diversification within environmental/ecological economics. We have a feeling that the economics profession can trace out the inte rface of the disciplines in some policy areas and raise the effectiven ess of prescriptions so that this academic species diversity can serve humankind to its full potential.