wall to wall, cradle to cradle chapter 5 environmental economics and consumption a leading carpet...
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WALL TO WALL, CRADLE TO CRADLE
CHAPTER 5 ENVIRONMENTAL ECONOMICS AND CONSUMPTION
A leading carpet company takes a chance on going green
What was it that Interface Carpets “just didn’t get”?
Why is it not enough, from an environmental point of
view, to simply comply with the law?
WHAT IS SUSTANABILITY?
To be sustainable means to be capable of being continued without degrading the environment.
________ is defined as development that meets present needs without preventing future generations from meeting their needs.
A. Sustainable developmentB. Ecological economicsC. The IPAT modelD. Natural interest
Clicker Question
Making sustainable development possible requires understanding:• Ecosystem goods and
services• Natural capital and natural
interest
• Economic models
• Internal and external costs
WHAT ARE ECOSYSTEM GOODS & SERVICES?
Environmental resources like timber and water are ecosystem goods.
Essential ecological processes like water purification and nutrient cycling that make life on Earth possible are ecosystem services.
NATURAL CAPITAL vs NATURAL INTEREST
WHAT IS ECONOMICS?
The social science that deals with how scarce resources are allocated.
It is about more than money as many resources and services we depend on come from the environment.
MAINSTREAM ECONOMIC MODEL
ASSUMPTIONS OF MAINSTREAM ECONOMICS
REALITIES OF THE EARTH’S ECOSYSTEMS
We can operate in a linear sequence
Natural and human resources are infinite or easily substitutable
Economic growth can go on forever
There is an “away”
Nature operates in cycles
Resources are not always infinite or easily substitutable
Ecosystems usually ready a steady-state
There is no “away”
ENVIRONMENTAL/ECOLOGICAL ECONOMIC MODEL
Both environmental and ecological economics consider the long-term impact of our choices on human society and the environment, and involve:
closed loop systems with renewable resources
more efficient resource use
reduction in waste generation
Ecological economists
believe that our ingenuity will only take us so far, and
that economic growth does have limits; therefore,
we must significantly
change the way we do things in
order to become sustainable as a
society.
Environmental economists
believe that we can apply the
tools of modern economics to
solve environmental
problems and still enjoy unlimited
economic growth.
Ecological
Economics
Environmental
Economics
But there are differences….
One additional limitation of mainstream economics is that it does not take into account all potential costs.
Traditional economics tend to discount the future value of goods. The result is that:
A. ecosystems services become devalued.
B. short-term benefits outweigh long-term benefits.
C. ecosystem services become over-valued.
D. None of the above answers are correct.
Clicker Question
WHAT ARE INTERNAL, EXTERNAL, AND TRUE COSTS?
Internal Costs + External Costs = True Costs
Businesses and individuals impact the environment
with their economic decisions.
The measure of the impact is the known as the ecological footprint.
WHAT IS AN ECOLOGICAL FOOTPRINT?
Land needed to provide the resources for and assimilate the waste of a person or population.
Ecological footprints vary for different countries based on their population size and per capita impact.
To estimate the size of an ecological
footprint, researchers use the IPAT equation.
WHAT IS THE IPAT EQUATION?
I = (P x A) / T
However, the right
technology can actually decrease impact.
As population or affluence increase,
impact on the environment typically
increases.
Population (P), affluence (A), and technology (T) all affect how much of an impact an individual or population has on the environment.
I = P x A x T
How did Interface Carpets reduce its
environmental impact and become more
sustainable?
Interface developed TacTiles technology using biomimicry (they created carpet glue based on how a gecko lizard clings to walls)
Life-cycle analysis
taking inventory of energy and materials inputs and evaluating the environmental impact of the product
Interface adopted a cradle-to-cradle management strategy and slashed energy use by 43% per unit of production, and relied on recycled or bio-based ingredients for 40% of its raw materials.
Biomimicry
imitating nature’s patterns in the design of products
Interface reinvented itself as a part of the service economy by focusing on providing the consumer the service of its carpet, rather than selling it as a product.
“I didn’t know what it would cost, and I didn’t know what our
customers would pay, so it was a leap of faith. I knew we had to do this, but it was like stepping off of a cliff and not knowing where your
foot was going to come down.”
–Ray Anderson