The value of value theory for ecological economics

Value theory forms the bedrock of several economic paradigms. It shapes how economists think about the purpose and functioning of the system as a whole. I identify three approaches to understanding value in economics: the British classical approach, exemplified by Smith and Ricardo, the neoclassical approach based on marginal utility theory, and Marxian value theory. The classical and neoclassical tradition explain exchange value by transhistorical use values. This gives rise to a conception of capitalism as a ‘real economy’, i.e. a system that produces goods and services for the purpose of satisfying people's needs and wants. Ecological economists adopt and extend the classical and neoclassical view, by predominantly studying a ‘real real’ economy, i.e. matter-energy stocks and flows and ultimate social outcomes. This allows an ecological critique of the economic process but fails to address underlying social drivers of ecological destruction. Marxian value theory provides a systemic (macro) understanding of value, which results in a realistic conception of capitalism as a monetary market economy. Marx's approach is the only value theory in economics that provides a fundamental critique of capitalism. I advocate a stronger integration of radical political economy and ecological economics to support social change.