Allocation of resources

Resource and neoclassical economics focus primarily on the efficient allocation of resources, and less on two other fundamental economic problems which are central to ecological economics: distribution (equity) and the scale of the economy relative to the ecosystems upon which it is reliant. Ecological Economics also makes a clear distinction between growth (quantitative) and development (qualitative improvement of the quality of life) while arguing that neoclassical economics confuses the two. Ecological economics challenges the common normative approach taken towards natural resources, claiming that it misvalues nature by displaying it as interchangeable with human capital--labor and technology. EE counters this convention by asserting that human capital is instead complementary to and dependent upon natural systems, as human capital inevitably derives from natural systems. From these premises, it follows that economic policy has a fiduciary responsibility to the greater ecological world, and that, by misvaluing the importance of nature, sustainable progress (as opposed to economic growth) --which is the only solution to elevating the standard of living for citizens worldwide—will not result. Furthermore, ecological economists point out that, beyond modest levels, increased per-capita consumption (the typical economic measure of "standard of living") does not necessarily lead to improvements in human well-being, while this same consumption can have harmful effects on the environment and broader societal well-being.