Yeah - this is a very good point. At a certain point, the scale of economic activity has to bump up against the finite scale of ecological dynamics upon which it is dependent. As long as negative externalities are treated as such - something "external" - markets cannot be expected to efficiently allocate resources w.r.t. human welfare.
The idea of and faith in economic adaptation as described in the parent (price/demand dynamics) is greatly dependent on the assumption of underlying ecological stability (from which sufficient timeframes for adaption and resource alternatives are provided).
The idea of and faith in economic adaptation as described in the parent (price/demand dynamics) is greatly dependent on the assumption of underlying ecological stability (from which sufficient timeframes for adaption and resource alternatives are provided).