Can Economic Principles Save the Planet?

If compared to the world’s top 10 economies, the ocean would rank as the seventh largest, with an annual value of goods and services of $2.5 trillion according to a new World Wildlife Fund (WWF) report. The analysis, Reviving the Ocean Economy: The Case for Action brings into focus the economic value our oceans represent for this planet, as the future of humanity depends on their healthy living conditions. While figures in the report are a vast underestimation, the economic assets at risk accurately portray the losses we will incur should we continue on the current destructive trajectory.

The report, produced in association with The Global Change Institute at the University of Queensland and The Boston Consulting Group (BCG), combines scientific evidence of environmental degradation with an economic case for urgent conservation action. Using an innovative economic analysis, the ocean’s value is quantified based on assessments of goods and services ranging from fisheries to coastal storm protection, resulting in an overall asset value and an annual dividend output (comparable to a GDP).

The Natural Capital Project is a partnership combining research innovation at Stanford University and the University of Minnesota with the global reach of conservation science and policy at The Nature Conservancy and the World Wildlife Fund. The project group works with leaders around the world to test and demonstrate how accounting for nature's benefits can support more sustainable investment and policy decisions. 

The project has developed practical, science-based approaches and software tools that quantify, map, and value services provided by nature. Accounting for ecosystem services reveals the diverse benefits provided by nature, clarifies trade-offs between alternative development scenarios, and helps people make more informed decisions about how to use lands and waters.

Since their founding in 2006, they have applied their approaches and tools in more than 20 major projects worldwide—guiding investments in water security in Latin America, in coastal protection in the Gulf of Mexico, in food security and economic diversification in Belize, and in community development in Canada and Hawai`i.

In another effort, researchers at Arizona State University are working to calculate the dollar value of nature in an effort to promote sustainability. In a study published recently in the Journal of the Association of Environmental and Resource Economists, researchers from Arizona State University (ASU) and Yale University have developed an interdisciplinary equation to estimate the current monetary value of natural resources such as fish stocks, groundwater or forests in the U.S. In assigning monetary value, to natural capital, this approach will have widespread implications for policymakers and various stakeholders, and will advocate for the creation of asset markets for natural capital.

“It is often said that nature is capital, but this has largely been a metaphor thus far; former measurement methods have lacked necessary inputs from experts from various disciplines, resulting in vast gaps of information,” said Joshua Abbott, associate professor at ASU’s School of Sustainability coauthored the study with Eli Fenichel, assistant professor at the Yale School of Forestry and Environmental Studies.

One example would be the reef fish in the Gulf of Mexico. During their research, Abbott and Fenichel found that the value of preserving live reef fish was more than $3 a pound in 2004, a price that jumped to almost $9 in 2007 after policymakers implemented management reforms that gave fisherman an incentive to conserve fish stocks. Fishermen were assigned individual tradeable quotas or shares of the fish stock, which created a market for the fish as a capital asset.

The Gulf’s reef fish contributed more than $256 million to U.S. national wealth in 2004—and three times that after management reforms. “We know from experience in the corporate world that changes in management practices can enhance the overall value of a company’s assets; it is no different with natural capital—our management of it can either enhance or detract from its value,” said Abbott.

It's safe to say that what goes unmeasured often doesn't get valued. Treating fish in the water as a capital asset encouraged fishermen to preserve the natural resource, which enhanced sustainable fishing practices that led to higher returns. Imagine if this same principle was applied to all of our natural resources?  Let's hope that this principle becomes more widespread and has a positive impact on increasing sustainability practices around the world.

Until next time...become the change you imagine.

Giving thanks for: water.

Thanksgiving is just a few days away and millions of people in the U.S. will be busy planning their Thanksgiving feasts with little thought to their water. Water is absolutely essential to the human body’s survival, yet this important resource is taken for granted by most people in developed nations.

Right now, approximately one billion people on this planet do not have access to clean drinking water. They must take water from polluted rivers and streams, contaminated water holes, and sometimes filthy mud puddles. Here are some of the facts:

• Each year more than five million people die from water-related disease.
• 30 % of water-related deaths are due to diarrhea.
• 84 % of water-related deaths are in children ages 0 – 14.
• 98 % of water-related deaths occur in the developing world.
• Less than 1% of the world's fresh water (or about 0.007% of all water on earth) is readily accessible for direct human use.
• A person can live weeks without food, but only days without water.
• A person needs 4 to 5 gallons of water per day to survive.
• The average American individual uses 100 to 176 gallons of water at home each day.
• The average African family uses about 5 gallons of water each day.
• 90 % of all deaths caused by diarrheal diseases are children under 5 years of age, mostly in developing countries.

One of the UN Millennium Development Goals of 2000 is to "Reduce by half, by 2015, the proportion of people without sustainable access to safe drinking water." The World Summit on Sustainable Development, Plan of Implementation (2002) states "... we agree to halve, by the year 2015, the proportion of people who are unable to reach or to afford safe drinking water (as outlined in the Millennium Declaration) and the proportion of people who do not have access to basic sanitation." Clean water is a global concern.

Many organizations are working diligently on the issue of clean water. Among them are:

Clean Water Action: an organization of 1.2 million members working to empower people to take action to protect America's waters, and build healthy communities.

National Resources Defense Council: Founded in 1970, its mission is to safeguard the Earth: its people, its plants and animals and the natural systems on which all life depends.

WaterAid works towards achieving its vision of a world where everyone has access to safe water and sanitation.

GLOBAL WATER was founded in 1982 by former U.S. Ambassador John McDonald and Dr. Peter Bourne to help save the lives of people in developing countries that are lost due to unclean water.

charity:water is relatively new on the scene but has become a powerhouse non-profit dedicated to bringing clean and safe drinking water to people in developing nations. Founder Scott Harrison started charity:water a little over two years ago and, as of this posting, has raised over $7 million and completed 890 projects serving over 400,000 people in some of the poorest places on earth. Private donors, foundations, and sponsors cover the cost of running the organization so that 100% of all donations will fund direct costs associated with the construction and maintenance of freshwater projects. This includes fuel for the drill rig, cement for the casing of wells and community training programs.

There are opportunities galore to help these organizations in their quest to provide clean water for all. This holiday season give the gift of life: clean water.

Until next time...become the change you imagine.

Earth Hour 2008

On 31 March 2007, 2.2 million people and 2100 Sydney businesses turned off their lights for one hour - Earth Hour. If the greenhouse reduction achieved in the Sydney CBD during Earth Hour was sustained for a year, it would be equivalent to taking 48,616 cars off the road for a year.

With Sydney icons like the Harbour Bridge and Opera House turning their lights off, and unique events such as weddings by candlelight, the world took notice. Inspired by the collective effort of millions of Sydneysiders, many major global cities are joining Earth Hour in 2008, turning a symbolic event into a global movement.



As of today, 24 cities have joined together to make this year's Earth Hour event truly inspiring. Individuals from other cities all over the world have signed up to participate. Kudos to the people of Sydney for leading the way! Sign up, get involved...this year's event takes place on Saturday, March 29th at 8:00pm.

Until next time...become the change you imagine.

The Power of One

People often question their own ability to affect change in the world. We believe that we are like little ants with no power. Nothing could be further from the truth. One ant doesn't seem like much, but a colony of millions has an impact on everything around it.

Humans have the capacity to drastically influence their environment by their sheer numbers. You only have to look at the avalanche of information about our current environmental crises to understand that we are currently dealing with the consequences of previous human actions.

That being said, every individual has the power to change things for the good of our world and every living thing in it. Here are a few ways:

• Educate yourself, and your children, on ways to reduce CO2 emissions, recycle, reduce use and waste. Share what you learn with others and assist them in being part of the solution.


• Use the power of your pocketbook! Support companies who have developed legitimate strategies for reducing their own negative impact on the environment and social inequality.
  
• Join organizations committed to repairing existing environmental damage.


• Work with local government and community organizations to implement green practices and policies that benefit the people of your community.

Today I signed a letter for Co-op America. Instead of promoting ethanol, automobile manufacturers need to improve the fuel efficiency of their vehicles to 40 mpg by 2012 and 55 mpg by 2020, and increase their production of hybrid and plug-in vehicles.

The price of "green" automobiles is directly influenced by DEMAND. The more people that demand these vehicles and demonstrate the desire with their money, then more of these vehicles will be produced and the costs will become affordable.

In her book The Art of Conscious Creation, Jackie Lapin states: "Each of us has the power to begin making our visions a reality by stepping into the realm of action." Become an "actionary" and get involved.

Until next time....become the change you imagine.