Tuesday, September 11, 2012

The Economics of Ecosystems and Biodiversity

A problem in the current economy system is that it doesn't value nature, it considers nature to be infinite and therefore there is no price tag on it. However, nature's resources are finite and TEEB (the economics of ecosystems and biodiversity) is an initiative trying to raise awareness of the economic benefit nature is giving us, that we do not account for in the current systems. Here is a longer lecture (1 hour 30 min) with him for those interested in learning more.

There is some reporting standards that do try to include the value of nature into accounting, or usually you add costs for the carbon emissions or similar harm the company's activities cause. These are often referred to as "full cost accounting". The Global Reporting Initiative is one of these. However, we need to move away from the economic growth thinking on political level as well and put less importance to the GDP measure. There are already alternatives to GDP as well, like GPI (Genuine Progress Indicator).

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