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Doughnut (economic model)

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From Wikipedia, the free encyclopedia

Economic model for sustainable development (created 2012)

"Doughnut Economics" redirects here. For the book by Kate Raworth, see Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist.

The classic image of the Doughnut; the extent to which boundaries are transgressed and social foundations are met are not visible on this diagram<br>The Doughnut , or Doughnut economics , is a visual framework for sustainable development – shaped like a doughnut or lifebelt – combining the concept of planetary boundaries with the complementary concept of social boundaries.[1] The name derives from the shape of the diagram, i.e. a disc with a hole in the middle. The centre hole of the model depicts the proportion of people that lack access to life's essentials (healthcare, education, equity and so on) while the crust represents the ecological ceilings (planetary boundaries) that life depends on and must not be overshot.[2] The diagram was developed by University of Oxford economist Kate Raworth in her 2012 Oxfam paper A Safe and Just Space for Humanity and elaborated upon in her 2017 book Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist and paper.[3]

Conceptual framework<br>[edit]

The framework was proposed to regard the performance of an economy by the extent to which the needs of people are met without overshooting Earth's ecological ceiling.[4] The main goal of the new model is to re-frame economic problems and set new goals. In this context, the model is also referred to as a "wake-up call to transform our capitalist worldview".[5] In this model, an economy is considered prosperous when all twelve social foundations are met without overshooting any of the nine ecological ceilings. This situation is represented by the area between the two rings, considered by its creator as a safe and just space for humanity.[6]

Kate Raworth noted the planetary boundaries concept does not take human wellbeing into account[7] (although, if Earth's ecosystem dies then all wellbeing is moot). She suggested social boundaries should be combined with the planetary boundaries structure. Adding measures such as jobs, education, food, access to water, health services and energy helps to accommodate an environmentally safe space compatible with poverty eradication and "rights for all". Within planetary limits and an equitable social foundation lies a doughnut-shaped area which is the area where there is a "safe and just space for humanity to thrive in".[8]

Indicators<br>[edit]

Social foundations<br>[edit]

The social foundations are inspired by the social aims of the Sustainable Development Goals of the United Nations.[9] These are:

Food security

Health

Education

Income and work (the latter is not limited to compensated employment but also includes things such as housekeeping)

Peace and justice

Political voice

Social equity

Gender equality

Housing

Networks (the latter includes both networks of communities, but also networks of information like the internet)

Energy

Water

Ecological ceilings<br>[edit]

Main article: Planetary boundaries

The nine ecological ceilings are from the planetary boundaries put forward by a group of Earth-system scientists led by Johan Rockström and Will Steffen.[9] These are:

Climate change — the human-caused emissions of greenhouse gases such as carbon dioxide and methane trap heat in the atmosphere, changing the Earth's climate.

Ocean acidification — when human-emitted carbon dioxide is absorbed into the oceans, it makes the water more acidic. For example, this lowers the ability of marine life to grow skeletons and shells.

Chemical pollution — releasing toxic materials into nature decreases biodiversity and lowers the fertility of animals (including humans).

Nitrogen and phosphorus loading — inefficient or excessive use of fertiliser leads to the fertilizer running off to water bodies, where they cause algae blooms which kills underwater life.

Freshwater withdrawals — using too much freshwater dries up the source which may damage the ecosystem and be unusable after.

Land conversion — converting land for economic activity (such as creating roads and farmland) damages or removes the habitat for wildlife, removes carbon sinks and disrupts natural cycles.

Biodiversity loss — economic activity may cause a reduction in the number and variety of species. This makes ecosystems more vulnerable and may lower their capacity of sustaining life and providing ecosystem services.

Air pollution — the emission of aerosols (small particles) has a negative impact on the health of species. It can also affect precipitation and...