Conceptualizing the Foundational Economy as a Cornerstone of Biodiversity Conservation and Restoration

Abstract

Degrowth scholars emphasize the importance of the foundational economy (FE) for ‘living well within planetary boundaries’. The foundational economy describes the provision and regulation of everyday goods and services needed for the satisfaction of basic needs, such as housing, care, education, energy, food and mobility. However, there is a lack of conceptual models linking FE production and consumption to biodiversity conservation and restoration. This paper develops an ecological–economic model of ecosystem services, biodiversity conservation, and the foundational economy. It embeds FE sectors in the whole economy and provides economic arguments both on the supply side (e.g., economies of scale, scope and density; transaction costs) as well as on the demand side (e.g., trust in institutions; universal basic services; willingness to accept changes) in favor of resource efficiency. Compared to extractive and financialized business models, the FE production has major environmental advantages, especially if connected to public and not-for-profit economic activities. Though FE production is certainly a necessary condition for biodiversity conservation, it is not per se a sufficient strategy. The foundational economy is also embedded in natural processes; thus, respective institutional, legal and economic frameworks are needed to limit the environmental impacts of FE.