A Real Capital equilibrium approach to policy
Turns doughnut economics into a governable economic operating system
This tool proposes a reinterpretation of Doughnut Economics in which planetary boundaries are understood not as external limits but as the equilibrium conditions of real capital—the atmosphere, hydrosphere, biosphere, and lithosphere that constitute the biophysical means of production.
When the rate of change of any real capital stock departs from zero, the economy is no longer sustainable; it is consuming its own foundation.
The paper develops a system-dynamics framework linking built capital (infrastructure and technology) to the depletion and regeneration of real capital, identifying equilibrium maintenance as the operational definition of sustainability.
It explains how policy should act as a feedback mechanism that restores equilibrium whenever imbalance arises, transforming the Doughnut from a moral metaphor into a governable operating system for regenerative economics.
In this view, economic success is measured not by growth of throughput but by the stability and persistence of the real capital base.
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Member
Fabien Zhao
Beijing, China
Cross-sector innovator, social ecosystem facilitator, focusing on emerging market practices and commercial solution implementation. Exploring sustainable business innovation, integrating new technologies with traditional resources to address industry pain points and create societal value.
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Member
Eva Marina Valencia Leñero
Mexico City, Mexico
| Sustainability Transitions Specialist | Co-Founder of Mexico City's Doughnut Economic Coalition + Scaling Coordinator in CIMMYT-CGIAR After finishing my MSc in Environmental Sciences, Policy and Management in Lund University with a thesis to downscale the doughnut for Mexico City's water policies, I learned research was not enough to make a change. For this reason, I have co-founded the Tricolor Coalition (Mexico City's Doughnut Economic Coalition) to collaborate with other agents of change to promote sustainability transitions in Mexico City. We are now developing community, informative, and capacity building activities to support Mexico City's agents of change interested in promoting this transition. I am currently also working as a Scaling Coordinator in the International Maize and Wheat Improvement Center. In my job, I continue to learn about systems thinking approaches, and about what types of food innovations could be scaled (why? and where?) to create more impact. Moreover, I also have experience in international and national public administrations, and I have specialized in the water-food-energy sectors and climate change challenges.
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