Eco-nomics, the new kind of economics

Nature Reserve If you live in Washington DC, as I do, there are two things that you hear about everywhere you turn- the U.S. presidential election and the economic crisis. The first topic will be resolved quickly enough. The second one will be around for a while to come, I'm afraid.

The financial crisis is here to stay for at least some time. However, the economic situation can have an interesting role in putting the price tab on the nature and the nature resources considered free until now.

According to the recent Reuters article:

"Advocates of "eco-nomics" say that valuing "natural capital" could help protect nature from rising human populations, pollution and climate change that do not figure in conventional measures of wealth such as gross domestic product (GDP) or gross national product (GNP)."

The approach of eco-nomics is that sustainability is an essential driver of economic prosperity and that companies should generate business value trough sustainable practices.

Reuters article continues with:

"Under standard economics, nations can boost their GDP -- briefly -- by chopping down all their forests and selling the timber, or by dynamiting coral reefs to catch all the fish. A rethink would stress the value of keeping nature intact."

Rethinking is definitely much needed on the economics of the world. The new approach sounds like an promising start.

Photo by pete4ducks

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