economic systems' relationship to biosphere

Economic systems are sets of social and economic structures, institutions, relationships, and processes used to organize production, exchange, and distribution. These systems are directly linked to the biosphere because they depend on the Earth’s resources and services, such as air, water, and food, for their functioning and development. Economic systems also impact the environment, both positively and negatively, by their decisions regarding the use of resources and their impacts on the environment. For example, decisions to create incentives for certain activities (like renewable-energy production) can have positive impacts on the environment, while unsustainable extraction of natural resources can have negative impacts on biodiversity and the environment. Overall, economic systems are reciprocal: they draw from the environment, and their actions have direct implications for the environment and its sustainability.