Environmental Problems, Their Causes, and Sustainability 1

Figure 26-16 Solutions: principles forshifting to more environmentally sustainableeconomies or eco-economies duringthis century.EconomicsReward (subsidize) earthsustainingbehaviorPenalize (tax and do notsubsidize) earthdegradingbehaviorShift taxes from wagesand profits to pollution andwasteUse full-cost pricingSell more services insteadof more thingsDo not deplete naturalcapitalEnvironmentallySustainableEconomy(Eco-Economy)Resource Useand PollutionReduce resource useand waste by refusing,reducing, reusing, andrecyclingImprove energyefficiencyRely more onrenewable solar andgeothermal energyShift from a carbonbased(fossil fuel)economy to arenewable fuel–basedeconomyLive off income fromnatural capitalReduce povertyEcology andPopulationUse environmentalindicators to measureprogressMimic naturePreserve biodiversityCertify sustainablepractices and productsRepair ecologicaldamageUse eco-labels onproductsStabilize population byreducing fertility(3) environmentally sustainable technologies, alsosupported by a government program; and (4) improvingpublic awareness through a massive governmentsponsoredpublic education program.Many of the country’s leading industrialists likethe Green Plan becaue they can make investments inpollution prevention and pollution control with lessfinancial risk and a high degree of certainty aboutlong-term environmental policy. And they are free todeal with the problems in ways that make the mostsense for their businesses. Industrial leaders have alsolearned that creating more efficient and environmentallysound products and processes often reducescosts and increases profits as they are sold at homeand abroad.The Netherlands plan is the first attempt by anycountry to foster a national debate on the issue of environmentalsustainability and to encourage innovativesolutions to environmental problems. Is the planworking? There is a long way to go, but the news isencouraging. Most of the target groups have met or exceededtheir goals on schedule. A huge amount of environmentalresearch by the government and privatesector has taken place. This has led to an increase in organicagriculture, greater reliance on bicycles in somecities, and more ecologically sound new housing developments.But some of the more ambitious goalssuch as decreasing CO 2 levels may have to be reviseddownward or even abandoned.Shifting to eco-economies over the next severaldecades this will require bold leadership by businessleaders and elected officials and bottom-up politicalpressure from concerned citizens. Forward-looking investors,corporate executives, and political leaders arerecognizing that the environmental revolution is also aneconomic revolution.Converting the economy of the 21st century into one that isenvironmentally sustainable represents the greatest investmentopportunity in history.LESTER R. BROWN AND CHRISTOPHER FLAVINCRITICAL THINKING1. Should we attempt to maximize economic growthby producing and consuming more and more economicgoods and services? Explain. What are thealternatives?602 CHAPTER 26 Economics, Environment, and Sustainability