Environmental economics, based on neoclassical methodology, cannot sufficiently describe and explain economic, ecological interactions because of its theoretical framework. Methodological individualism, materially circulation-theory, the tendency towards quantification and monetization, and an “unhistorical” idea of time, prevent economists from realizing irreversible and dynamic develop-ments of complex systems, like ecosystems. Ecological methodology with its systemic and evolu-tionary approach, combined with a holistic perception of spaces, leads to a more realistic view of economic-ecological interactions and provides guidelines for environmental policy, quite different to those proposed by conventional environmental economics. In short, protection of the environ-ment requires internalization into ecological and NOT into economic system.