Doughnut economy

The doughnut economy is an economic model that is embedded in society and the environment. The outer crust of the doughnut represents the planetary boundaries or the environmental ceiling which must be protected in order to guarantee a good life for current and future generations. Hence, e.g. climate change, land conversion and the loss of biodiversity (vide: arrow overshoot) must be halted.

The hole in the centre of the doughnut represents the space for people who do not have access to the essential social foundations of life such as education, health care, social equity, housing (vide: arrow shortfall).

The spot in between the outer and inner circle represents the space where everybody is enabled to live a good life below the planetary boundaries.

The area beyond ‘the safe and just space of humanity’ represents the section where people transcend the boundaries of the planet.

In this context successful economic activity is understood as balancing protection of the key ecological systems of the planet with achieving social wellbeing and quality of life for everybody. Here, economy is not a separate dimension. Rather, it is a factor that can generate future viability as an integrative aspect of sustainability.

The doughnut of social and planetary boundaries

 Fig. : The doughnut of social and planetary boundaries