It is argued that institutional economists have to take issues of values and ideology seriously. Economics is always political economics. Neoclassical Economic Man can be replaced by a Political Economic Person understood in terms of identity, life-style and ideological orientation and other concepts connected with social psychology. Environmental policy starts with individuals as actors in different roles. Individuals as actors may cooperate in networks for specific purposes, ideas about sustainable development potentially included. Relationships between institutional economics and ecological economics are discussed.