“Doughnut economics” is a concept coined in 2012 by British economist Kate Raworth, a professor at Oxford University and research associate at the Environmental Change Institute. She argued that traditional economics failed to account for the physical limits of nature and the basic needs of society, and the model emerged as a compass to guide progress without exceeding the Earth’s capacity to regenerate.
Why a doughnut? The idea is to depict a circular, fair economy as a safe space where everything is included, using a universal, visual, and easily recognizable geometric shape. It stands in contrast to the 20th-century economic model that measured a nation’s success through linear growth in Gross Domestic Product (GDP), without considering social or climate indicators.
In “doughnut economics”, which Raworth developed further in her 2017 book Seven Ways to Think Like a 21st-Century Economist, each part has a specific meaning.
- The circular mass itself represents the space in which the economy should operate, meeting everyone’s needs while protecting the environment.
- The inner hole represents the social foundation, where shortages and deficits are found. In other words, it contains the 12 basic social foundations that the United Nations, through its Sustainable Development Goals, considers essential: water, food, education, and health. If part of society falls into or approaches this threshold, it is said to be “falling into the hole.”
- The outer edge represents the ecological ceiling, which marks the planetary limits identified by the Stockholm Resilience Centre. Crossing this boundary implies a higher risk of biodiversity loss, as well as other environmental disruptions.
In this way, the doughnut model warns that a “healthy” economy is not one that grows infinitely, but one that thrives in balance.
From theory to practice
This model is not just an abstract idea. At the international level, the World Economic Forum and the OCDE (Organization for Economic Cooperation and Development) have begun to integrate metrics that include indicators of social and environmental well-being, going beyond growth measured purely in monetary terms and recognizing that economic stability also depends on ecological and social stability. This approach has also reached the business world, where companies have placed sustainability on the same level as financial objectives.
In Spain, the Sustainability in Spain 2025 report by Fundación Alternativas highlights that, while progress has been made in the energy transition, pressure on water resources and the loss of fertile soil remain significant challenges that place the country outside the doughnut’s “outer limit” in key areas.
The “doughnut” of Barcelona, Vitoria, or Valencia
Spanish cities such as Barcelona have launched initiatives to apply doughnut-based indicators, aiming to reduce their urban ecological footprint while strengthening social cohesion. Vitoria-Gasteiz is moving in the same direction through its 2030 Circular Economy Strategy, promoting measures such as urban densification to avoid occupying new land and causing greater environmental impact.
Another example of doughnut economics in Spain is Valencia, which has promoted this approach following its designation as European Green Capital by incorporating indicators related to social well-being and the preservation of natural resources such as Albufera lagoon and the surrounding peri-urban farmland.
Many other municipalities are moving in this direction through the FEMP (Spanish Federation of Municipalities and Provinces) and its Network of Local Entities for the 2030 Agenda, adopting well-being indicators that replace or complement local GDP and align with Kate Raworth's vision of “thriving rather than growing.”
Ultimately, doughnut economics proposes progress through a shift in goals and objectives: instead of pursuing linear and infinite growth, it seeks a dynamic balance between human needs and the planet’s limits