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Reddit mentions of Natural Capitalism
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Reddit mentions: 1
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Yup. Contradictory right? Natural Capitalism: The Next Industrial Revolution is a great book discussing this.
In this case, government decides it needs to stop using fossil fuels, and sends this as price signals and various regulations to industry enabling business to adjust to the new market over time. A great example of this would be a carbon tax. If you want less carbon, just tax the carbon and progressively higher rates over time, and then let businesses figure out how they will conduct themselves as the cost of that pollutant rises. So rather than investing in individual technologies, or mandating HOW businesses will achieve a reduction in carbon, you just tax the carbon and business can work out how they can invest and profit in the changing business environment. You give business certainty that their cost structure will change at certain times, and you let them choose how to run themselves (because for government to dictate this to every business or even every household is unworkable - let the market and individual businesses and consumers make those millions of calculations and decisions and investments/actions themselves).
Here's more info in case you haven't seen it before:
Natural Capital & Ecosystem Services
Natural Capitalism (taking natural capital into account)
Harvard Business Review: A Road Map for Natural Capitalism
> This article puts forward a new approach not only for protecting the biosphere but also for improving profits and competitiveness. Some very simple changes to the way we run our businesses, built on advanced techniques for making resources more productive, can yield startling benefits both for today’s shareholders and for future generations.
> This approach is called natural capitalism because it’s what capitalism might become if its largest category of capital—the “natural capital” of ecosystem services—were properly valued
A simplistic example is a tree. A tree in the ground provides flood plains management, air filtration, carbon sequestration/sink, habitat for birds, bees, insects, wildlife - we rely on the output of the tree for some markets such as honey etc. However according to many economic measures, the tree in the ground isn't worth very much. However, if we chop the tree down, and make wood...well THAT's economic activity, and increasing GDP. But if we chop down all the trees, there is no more GDP, no more honey, birds, clean air etc - the accounting ledger is an incomplete count because it doesn't value the natural assets correctly.