Our economic model has brought prosperity to large parts of humanity – but it has also led us into a series of crises. The continuing overuse of natural resources has caused the climate crisis, an unprecedented loss of biodiversity, and damaged water, air, and soil. Therefore, we need to transform our economic system to remain within the carrying capacity of our climate and ecosystems, and to become resilient toward unfolding climate change. Through its projects and publications, Ecologic Institute develops solutions for this transformation.

Of central importance are incentives for sustainability – for consumers and investors alike. Economic instruments such as emissions trading systems, environmental taxation, or the reduction of environmentally harmful subsidies play a role here, as does a reform of the financial system. Ecologic Institute uses a suite of analytical tools to identify which incentives need to be corrected and which barriers need to be overcome.

This also includes the issue of how we measure economic progress. This concerns welfare indicators as well as the economic valuation of environmental goods and services, and the question of how such approaches can inform policy decisions.

At the same time, Ecologic Institute's team of economists investigates potential economic transformation pathways toward sustainability and climate protection. This includes analyses of the impacts of such transformations – for example, on employment and international competitiveness.