INTRODUCTION
Chapter 4. The Shape of the Eco-Economy
Lester R. Brown, Eco-Economy: Building an Economy for the Earth
(W.W. Norton & Co., NY: 2001).
In March 2000, at a briefing on State
of the World 2000 for World Bank staff, I noted that proposed
projects should help build an economy that is environmentally sustainable,
not one that self-destructs. In response, someone said that the
Bank always does an environmental assessment of its projects. But
that's the problem, I replied. Environmental scientists are assessing
the effects of projects after economists have decided which investments
to make. At best, the scientists can suggest steps to ameliorate
the environmental damage from the projects selected by economists.
What are the odds that an economist not trained in ecology will
independently design projects that collectively will build an economy
that is environmentally sustainable? Not very high. The same could
be said of all leading economic decisionmakerscorporate
planners, government policymakers, and investment bankers.
As noted in Chapter 1, an economy is sustainable only if it respects
the principles of ecology. These principles are as real as those
of aerodynamics. If an aircraft is to fly, it has to satisfy certain
principles of thrust and lift. So, too, if an economy is to sustain
progress, it must satisfy the basic principles of ecology. If it
does not, it will decline and eventually collapse. There is no middle
ground. An economy is either sustainable or it is not.
Today's global economy has been shaped by market forces, not by
the principles of ecology. Unfortunately, by failing to reflect
the full costs of goods and services, the market provides misleading
information to economic decisionmakers at all levels. This has created
a distorted economy that is out of sync with the earth's ecosystem--an
economy that is destroying its natural support systems.
The market does not recognize basic ecological concepts of sustainable
yield nor does it respect the balances of nature. For example, it
pays no attention to the growing imbalance between carbon emissions
and nature's capacity to fix carbon, much less to the role of burning
fossil fuels in creating the imbalance. For most economists, a rise
in carbon dioxide (CO2) levels is of little concern. For an ecologist,
such a risedriven
by the use of fossil fuels--is a signal to shift to other energy
sources in order to avoid rising temperatures, melting ice, and
rising sea level.
An eco-economy is one that satisfies our needs without jeopardizing
the prospects of future generations to meet their needs, as the
Brundtland Commission pointed out nearly 15 years ago. The purpose
of this chapter is to provide a sense of what an eco-economy will
look like. It also offers some sense of the scope of this change.
It is not a trivial undertaking.1
ENDNOTES:
1. World
Commission on Environment and Development, Our Common Future (Oxford:
Oxford University Press, 1987).
Copyright
© 2001 Earth Policy Institute
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