Market Failures and Thermodynamics

Case Study: Conversion of Mangrove Ecosystems to Shrimp Aquaculture

Structure, raw materials, stock-flow resources Building materials, charcoal, food Function, ecosystem services, fund- services Storm protection Habitat, nursery Waste absorption Climate stabilization Genetic information Values of Natural Capital: Mangrove Ecosystems

Values of Conversion Shrimp Aquaculture High short term profits, heavily promoted by economistsHigh short term profits, heavily promoted by economists Shrimp and fish for 3-5 yearsShrimp and fish for 3-5 years Carnivorous, net reduction in food productionCarnivorous, net reduction in food production Less protein than intact ecosystemLess protein than intact ecosystem Massive waste outputMassive waste output Irreversible(?) destruction of ecosystemIrreversible(?) destruction of ecosystem Why convert?Why convert?

On natural capital:On natural capital: Loss of Ecosystem servicesLoss of Ecosystem services Loss of fish productionLoss of fish production On social capital?On social capital? On human capitalOn human capital Impact of Conversion

Today’s Headlines China to Reward Cities and Regions Making Progress on Air Pollution Study Finds Methane Leaks Negate Benefits of Natural Gas as a Fuel for Vehicles –…there is already about 50 percent more methane in the atmosphere than previously estimated …methane is leaking from the natural gas production chain –New York and other Northeastern states… push the federal government to regulate methane emissions.

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