From Limits to Transformation: Reframing Institutions in Ecological Economics and Institutional Economics

Abstract

In a global context marked by a socio-ecological polycrisis, it has become urgent to rethink the institutions that mediate relationships between societies and ecosystems. While sustainability policies are multiplying, they often operate within institutional frameworks that are ill-suited to enable the systemic transformations required. Institutions, both formal and informal, are not neutral structures: they are the deep infrastructures that determine whether socio-ecological systems remain locked in dysfunctional patterns or open pathways for change. This paper explores the potential of a critical dialogue between Ecological Economics (EE) and Institutional Economics (IE). Despite efforts at integration—most notably by Vatn and Paavola—there is still no coherent framework for addressing ecological transitions at systemic and multi-level scales. The study asks: What theoretical and institutional limitations characterize current models of environmental governance, and what conceptual and institutional conditions are necessary to enable a just and systemic ecological transition? It investigates which theoretical and economic approaches dominate debates on institutions and sustainability, what underlying assumptions about power, scale, and justice they contain, and whether the literature offers transformative institutional proposals. Using a Systematic Literature Review of peer-reviewed articles from Scopus and Web of Science, this research maps convergences and divergences between EE and IE, identifies conceptual gaps, and gathers emerging ideas to support profound social and ecological transformations.

Presenters

Riccardo De Angeli
Student, PhD candidate in Social Sciences for Sustainability and Wellbeing, University of Florence, FI, Italy

Tiziano Distefano
Associate Professor, Economics and Management, University of Florence, Florence, Italy

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

The Power of Institutions

KEYWORDS

Ecological Economics, Institutional Economics, Environmental Governance, Transformative Institutions