Malcolm and Brian,

Thanks for your emails on economics and ecology.
In reply to two excerpted comments...

Malcolm McCallum wrote:
snip
> Many business groups ignore =
> environmental costs in their models and misforcast economic trends.  =
> When these are included, our economy is pretty unhealthy.  Shifting =
> these costs to the pollution producer actually stimulates the economy!  =
snip
> Things like =
> tradeable permits actually reduce pollution readily and quickly because =
> it becomes more profitable for the company or individual to reduce =
> emissions and sell their permit than to keep the permit.  
snip


I have been thinking that ecological economics would actually
lead to better economics, even from the perspective of the
economists, with a few twists. As you suggest above, to deal
with environmental costs can/could stimulate the economy for
such indicators as activity, production, etc. (though maybe not
with the simple, purely economic, non-environmentally-anchored
dollars we have now). One way the benefits of ecological systems
seems clear comes from considering models such as industrial
ecology and approaches proposed by people like William
McDonough. In these systems, production is integrated with
consumption and recycling such that "waste = food" or waste in
the sense of material that leaves the system in degraded,
unproductive form is eliminated almost entirely and by design.

Following this scheme, no new commodity would be designed
and produced until a complementary process for retrieval and
deconstruction and recycling were also ready to go. For
McDonough and others the goal shifts from selling a material
object to selling the functional value or service that comes from
using that material object, with the idea that the actual material
is destined to be returned to the production process for another
round.

So in a simple scan of this system (a system of closed material
loops like a closed aquarium, or the biosphere) it seems to me
that there is almost twice the "economic" activity (broadly
considered as exchange, perhaps, and not traditional economic
growth like GDP or total system throughput) involved, and it
is also a 2-for-1 deal that also helps reduce or eliminate waste
and the negative environmental consequences (and regulations
and gaming the system, etc. etc.) that go along with our current
system where we design and build production separate and
dis-integrated from consumption and recycling.

So I wonder - if the economists could see it this way, that it
could be a major win-win or win-win-win or beyond, would
they not become the leading proponents of ecological
economics? Would such a system be more profitable (again it
would have to be a broader or modified concept of profit, not
just simple dollars)? I know there are many other issues involved
(like distances between sites of production, consumption, recycle,
etc. and "consumer" mindset and attitudes, etc.) but this
potential seems worth exploring.

Dan Fiscus

-- 

Dan Fiscus
Ecologist/Researcher/PhD student
University of Maryland
Center for Environmental Science
Appalachian Lab
301 Braddock Rd
Frostburg, MD 21532
301-689-7121 (phone)
http://al.umces.edu/~fiscus/research

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