If we do not do the impossible, we shall be faced with the unthinkable.... Nor do piecemeal steps however well intended, even partially resolve problems that have reached a universal, global and catastrophic character. If anything, partial "solutions" serve merely as cosmetics to conceal the deep seated nature of the ecological crisis. They thereby deflect public attention and theoretical insight from an adequate understanding of the depth and scope of the necessary changes.

To speak of "limits to growth" under a capitalistic market economy is as meaningless as to speak of limits of warfare under a warrior society. The moral pieties, that are voiced today by many well-meaning environmentalists, are as naive as the moral pieties of multinationals are manipulative. Capitalism can no more be "persuaded" to limit growth than a human being can be "persuaded" to stop breathing. Attempts to "green" capitalism, to make it "ecological", are doomed by the very nature of the system as a system of endless growth.

The early 1980s saw the publication of Bookchin’s two major works. The Ecology of Freedom: The Emergence and Dissolution of Hierarchy (1982; republished 1991 and 2005) is a magisterial discussion of ecology and social hierarchy, weaving political, anthropological, psychological, and scientific themes. Here Bookchin explores the notion of dominating nature and its historical emergence primarily from the very real social domination of human by human, particularly in gerontocracies, patriarchies, and other hierarchical strata. He considered hierarchy and domination as more fundamental forms of oppression than class and exploitation.

His second “magnum opus” was The Rise of Urbanization and the Decline of Citizenship (1986; republished as Urbanization Without Cities [1992] and From Urbanization to Cities [1995]). This masterpiece narrates a history of civic self-management, face-to-face democracy, and confederalism in the Western democratic tradition, beginning in ancient Greece and proceeding through medieval European towns and to the popular institutions in several revolutions, particularly the American and French. The book culminates in a chapter-long exposition of libertarian municipalism, which is the name Bookchin gave to his political project. Libertarian municipalism is a politics that seeks to recreate a vital local political or civic sphere in order to establish direct-democratic popular assemblies at the municipal, town, and neighborhood levels. Over larger regions these assemblies would confederate and, as they gained strength, challenge the centralized nation-state. He argued for a municipalization (rather than a Marxian nationalization) of the economy, as a way of opposing the present corporate capitalist system of ownership and management. Some of these ideas were also developed in the essays compiled in The Modern Crisis (1986).

In the mid-1980s Bookchin helped inspire the emergence of the international Green political movement and had a strong influence on the rise of the Greens in Germany and later on its “fundi” wing. In 1987 he delivered the keynote address of the first Green gathering in the United States, in Amherst, Massachusetts. Here he opened up a debate within the ecology movement over Deep Ecology, a set of ideas that were gaining influence ant the time and that he considered to have reactionary political implications due to their prioritization of nonhuman nature over human beings as well as to their emphasis on spirituality and mysticism. He also opposed tendencies in the U.S. Greens that wanted to create a Green Party to run candidates for state and national office; instead he preferred a radical green movement that would educate the public about the need for both local democracy and ecological solutions, in accordance with libertarian municipalism. In the late 1980s, as a member of the Greens in Burlington, Vermont, he participated in several local political campaigns that were intended to raise awareness of environmental issues in the city and at the same time call for the democratization of local political institutions. In 1988 he co-founded the Left Green Network, a confederation of groups that shared his approach.

Social ecology is based on the conviction that nearly all of our present ecological problems originate in deep-seated social problems. It follows, from this view, that these ecological problems cannot be understood, let alone solved, without a careful understanding of our existing society and the irrationalities that dominate it. To make this point more concrete: economic, ethnic, cultural, and gender conflicts, among many others, lie at the core of the most serious ecological dislocations we face today - apart, to be sure, from those that are produced by natural catastrophes.

The notion that man must dominate nature emerges directly from the domination of man by man… But it was not until organic community relation… dissolved into market relationships that the planet itself was reduced to a resource for exploitation. This centuries-long tendency finds its most exacerbating development in modern capitalism. Owing to its inherently competitive nature, bourgeois society not only pits humans against each other, it also pits the mass of humanity against the natural world. Just as men are converted into commodities, so every aspect of nature is converted into a commodity, a resource to be manufactured and merchandised wantonly.… The plundering of the human spirit by the market place is paralleled by the plundering of the earth by capital.