WALL TO WALL, CRADLE TO CRADLE CHAPTER 5 ENVIRONMENTAL ECONOMICS AND CONSUMPTION WALL TO WALL, CRADLE TO CRADLE 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.

Clicker Question ________ is defined as development that meets present needs without preventing future generations from meeting their needs. Sustainable development Ecological economics The IPAT model Natural interest Answer: A

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 Nature operates in cycles Resources are not always infinite or easily substitutable Natural and human resources are infinite or easily substitutable Ecosystems usually ready a steady-state Economic growth can go on forever There is no “away” There is an “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

Environmental Economics But there are differences…. 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. Ecological Economics Environmental Economics Environmental economists believe that we can apply the tools of modern economics to solve environmental problems and still enjoy unlimited economic growth.

One additional limitation of mainstream economics is that it does not take into account all potential costs. Correct Answer: C

Clicker Question Traditional economics tend to discount the future value of goods. The result is that: ecosystems services become devalued. short-term benefits outweigh long-term benefits. ecosystem services become over-valued. None of the above answers are correct. Answer: B

WHAT ARE INTERNAL, EXTERNAL, AND TRUE COSTS?

Internal Costs + External Costs = True Costs

The measure of the impact is the known as the ecological footprint. 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?

However, the right technology can actually decrease impact. Population (P), affluence (A), and technology (T) all affect how much of an impact an individual or population has on the environment. As population or affluence increase, impact on the environment typically increases. However, the right technology can actually decrease impact. I = P x A x T I = (P x A) / 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) Biomimicry imitating nature’s patterns in the design of products 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. Life-cycle analysis taking inventory of energy and materials inputs and evaluating the environmental impact of the product

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