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News articles on economics
Mongabay.com news articles on economics in blog format. Updated regularly.
(12/09/2013) While the merits for slowing climate change will be treated here as a given, the method for doing so looms elusive. In a recent article, I described pricing carbon through carbon taxes and carbon credits as a way to mitigate greenhouse gas emissions and slow global climate change. As there has been some emotive controversy towards both of these, I would like to analyze them more deeply, starting here with carbon credits.
Zoos join fossil fuel divestment movement
(11/05/2013) Last month, over a hundred representatives from zoos and aquariums around the world joined climate activism group, 350.org, pledging that their institutions would take action against global warming, including the possibility of divesting from fossil fuel companies. The effort, dubbed Zoos and Aquariums for 350, was launched during the annual meeting of the Conservation Breeding Specialist Group (CBSG).
America's growing inequality helped scuttle the global climate change initiative
(10/28/2013) The link between good economic policy and climate change mitigation is instigated by policies such as the triple-bottom line, carbon limitations, and pro-environmental legislation. However, economic inequality is a little explored piece of the successful fight against climate change. For climate change mitigation and good economic policy to work, economic growth must be broad-based. Indeed, the inability for the United States to make a coherent and progressive stance on climate change has effectively stymied the global initiative—and is in part due to growing inequality. Due to the nation's market size and political power, U.S. policy is often a decisive factor for many global issues.
David Attenborough: someone who believes in infinite growth is 'either a madman or an economist'
(10/16/2013) Sir David Attenborough has said that people living in poorer countries are just as concerned about the environment as those in the developed world, and "exporting environmentalism" isn't necessarily an "uphill struggle". The veteran broadcaster said ideas about protecting the natural world were not unwelcome in less developed nations—but added that wealthier countries should work to improve women's rights around the world to bring down birth rates and avoid overpopulation.
Divestment campaign could cause considerable damage to fossil fuel industry
(10/08/2013) A campaign to persuade investors to take their money out of the fossil fuel sector is growing faster than any previous divestment campaign and could cause significant damage to coal, oil and gas companies, according to a study from the University of Oxford. The report compares the current fossil fuel divestment campaign, which has attracted 41 institutions since 2010, with those against tobacco, apartheid in South Africa, armaments, gambling and pornography. It concludes that the direct financial impact of such campaigns on share prices or the ability to raise funds is small but the reputational damage can still have major financial consequences.
Climate change policy is just good economics
(09/25/2013) For the majority of the new century, Americans have largely stopped caring about the environment. In that time, America has suffered 9/11, two of the nation's four longest wars, the deepest depression in 80 years, increased inequality, and incompetent or fractured leadership. There's been a lot on the public mind.
Tools against climate change: carbon tax and cap-and-trade
(09/04/2013) Climate-conscious folk agree that atmospheric carbon concentration is a key greenhouse gas and a large factor in global climate change. However, there are discrepancies in the methods chosen to address the problem. Some say that carbon emissions should be banned. Some say fossil fuels should be priced. Others say that there are nuances within each. Which tools can we realistically use to mitigate climate change and the drastic effects it will have on our world?
In defense of the financial industry: stocking up to end climate change
(08/20/2013) On a cross-country bus trip through the American Midwest, I watch cool morning mist rise from patchwork fields. Between the fields stand groves of dark green mid-summer trees, I am reminded that this scene is in jeopardy. The region is cited for its vulnerability to desertification associated with climate change.
China's growing wine industry threatening pandas and other endangered species
(08/14/2013) In 1985, Li Hua visited a valley in the foothills of the Tibetan plateau. The area was better known for its panda population, but the oenologist realized that its high altitude, hours of sunshine, sandy soil and low precipitation also offered ideal conditions for growing grapes.
Arctic melt to cost trillions
(07/30/2013) Rapid thawing of the Arctic could trigger a catastrophic "economic timebomb" which would cost trillions of dollars and undermine the global financial system, say a group of economists and polar scientists. Governments and industry have expected the widespread warming of the Arctic region in the past 20 years to be an economic boon, allowing the exploitation of new gas and oilfields and enabling shipping to travel faster between Europe and Asia.
In age of climate change, Australia's vast coal fields could become worthless
(07/02/2013) Australia's huge coal industry is a speculative bubble ripe for financial implosion if the world's governments fulfill their agreement to act on climate change, according to a new report. The warning that much of the nation's coal reserves will become worthless as the world hits carbon emission limits comes after banking giant Citi also warned Australian investors that fossil fuel companies could do little to avoid the future loss of value.
Local economy ruined by pesticide pollution in the Caribbean
(05/29/2013) On 15 April more than 100 fishermen demonstrated in the streets of Fort de France, the main town on Martinique, in the French West Indies. In January they barricaded the port until the government in Paris allocated €2m ($2.6m) in aid, which they are still waiting for. The contamination caused by chlordecone, a persistent organochlorine pesticide, means their spiny lobsters are no longer fit for human consumption. The people of neighboring Guadeloupe are increasingly angry for the same reason. After polluting the soil, the chemical is wreaking havoc out at sea, an environmental disaster that now threatens the whole economy.
Ten U.S. cities pledge to kick fossil fuel investments to the curb
(05/01/2013) The cities of San Francisco and Seattle have pulled their money out of fossil fuel companies, taking a climate divestment campaign from college campuses to local government. The campaign group 350.org said on Thursday it had won commitments from a total of 10 cities and towns to divest from 200 of leading fossil fuel companies.
Conservation without supervision: Peruvian community group creates and patrols its own protected area
(04/30/2013) When we think of conservation areas, many of us think of iconic National Parks overseen by uniformed government employees or wilderness areas purchased and run from afar by big-donor organizations like The Nature Conservancy, Wildlife Conservation Society, WWF, or Conservation International. But what happens to ecosystems and wildlife in areas where there's a total lack of government presence and no money coming in for its protection? This is the story of one rural Peruvian community that took conservation matters into their own hands, with a little help from a dedicated pair of primate researchers, in order to protect a high biodiversity cloud forest.
What if companies actually had to compensate society for environmental destruction?
(04/29/2013) The environment is a public good. We all share and depend on clean water, a stable atmosphere, and abundant biodiversity for survival, not to mention health and societal well-being. But under our current global economy, industries can often destroy and pollute the environment—degrading public health and communities—without paying adequate compensation to the public good. Economists call this process "externalizing costs," i.e. the cost of environmental degradation in many cases is borne by society, instead of the companies that cause it. A new report from TEEB (The Economics of Ecosystems and Biodiversity), conducted by Trucost, highlights the scale of the problem: unpriced natural capital (i.e. that which is not taken into account by the global market) was worth $7.3 trillion in 2009, equal to 13 percent of that year's global economic output.
'Carbon bubble' could cause next global financial crisis
(04/22/2013) The world could be heading for a major economic crisis as stock markets inflate an investment bubble in fossil fuels to the tune of trillions of dollars, according to leading economists. "The financial crisis has shown what happens when risks accumulate unnoticed," said Lord (Nicholas) Stern, a professor at the London School of Economics. He said the risk was "very big indeed" and that almost all investors and regulators were failing to address it.
REDD+ and Business Sustainability: A Guide to Reversing Deforestation for Forward Thinking Companies – book review
(04/08/2013) Brian McFarland has published a concise, yet comprehensive, DōShort book titled REDD+ and Business Sustainability.
Proposed coal plant threatens Critically Endangered Philippine cockatoo
(04/02/2013) One kilometer off the Philippine island of Palawan lays the Rasa Island Wildlife Sanctuary; here forest grows unimpeded from a coral island surrounded by mangroves and coral reefs. Although tiny, over a hundred bird species have been recorded on the island along with a major population of large flying foxes, while in the waters below swim at least 130 species of coral fish, three types of marine turtles, and that curious-looking marine mammal, dugongs. Most importantly, perhaps, the island is home to the world's largest population of Philippine cockatoos (Cacatua haematuropygia), currently listed as Critically Endangered. But, although uninhabited by people, Rasa Island may soon be altered irrevocably by human impacts.
Carbon Markets or Climate Finance - book review
(03/25/2013) Carbon markets or climate finance? This is the question posed by Carbon Markets or Climate Finance, edited by Axel Michaelowa. First of all, let’s define climate finance as the financial resources used to mitigate and adapt to climate change.
Planet organic: achieving sustainable food security and environmental gains
(03/19/2013) The global farmland area certified organic has expanded more than threefold to 37 million hectares since 1999, according to new research conducted by the Worldwatch Institute. The Institute argues that organic farming has the potential to contribute to sustainable food security by improving nutrition intake and sustaining rural livelihoods, while reducing vulnerability to climate change and enhancing biodiversity.
A New Blueprint for a Green Economy - book review
(03/04/2013) Edward B. Barbier and Anil Markandya, contributing authors to 1989 classic Blueprint for a Green Economy, have revisited the theme to implement a green economy and published A New Blueprint for a Green Economy. The central theme of A New Blueprint for a Green Economy is how we can make economies green today given what we have learned from our efforts since 1989.
Investors beware: global land grabbing ends in 'financial damage' and human rights violations
(02/07/2013) Investing in companies that flout local community rights in developing countries often leads to severe economic losses, according to a new report from the Rights and Resources Initiative (RRI). A rising trend in "land grabbing" from Africa to South America by corporations and even foreign governments results in social instability, which can lead to large-scale protests, violence, and even murder, delaying and sometimes derailing projects. Such instability poses massive risk to any investor, not to mention supporting corporate entities that are accused of ignoring human rights.
Head of IMF: climate change is 'the greatest economic challenge of the 21st century'
(02/06/2013) Climate change not debt or austerity is "the greatest economic challenge of the 21st Century," according to Christine Lagarde, the head of the International Monetary Fund (IMF). Speaking at the World Economic Forum in Davos, Switzerland, Lagarde painted a stark picture of the challenges the world faces when up against rising temperatures.
Lean Design Management: Applications to Natural Resource Management
(02/04/2013) Lean Design Management is a design management process that is applied most often within the construction sector. Its applicability to natural resources management is evident through the similarities between construction management and natural resources management.
Forests in Kenya worth much more intact says government report
(01/24/2013) Kenya's forests provide greater services and wealth to the nation when they are left standing. A landmark report by The Kenyan Government and the United Nations Environment Programme (UNEP) addresses the importance of forests to the well-being of the nation, putting Kenya among a pioneering group of countries that aim to center development plans around nature-based assets.
The Economics of Ecosystems and Biodiversity in Local and Regional Policy - a book review
(01/21/2013) The Economics of Ecosystems and Biodiversity in Local and Regional Policy, edited by Heidi Wittmar and Haripriya Gundimeda, provides thoughtful and actionable approaches to integrate nature’s benefits into decision-making frameworks for local and regional policy and public management institutions. Filled with numerous case studies, The Economics of Ecosystems and Biodiversity in Local and Regional Policy, delivers a compendium of concepts and ideas.
A second look at 'Fewer, Richer, Greener: The End of the Population Explosion and the Future for Investors'
(01/14/2013) Fewer, Richer, Greener: The End of the Population Explosion and the Future for Investors (November/December 2012, Vol. 68, No. 6: 20–37), by Mr. Laurence B. Siegel provides us with a commentary of population explosion and green investment opportunities over the long-run.
Paradigm shift needed to avert global environmental collapse, according to author of new book The Blueprint: Averting Global Collapse
(01/10/2013) Global strategist, trained educator, and international lecturer Daniel Rirdan set out to create a plan addressing the future of our planet. His book The Blueprint: Averting Global Collapse, published this year, does just that. "It has been a sixty hour a week routine," Rirdan told mongabay.com in a recent interview. "Basically, I would wake up with the burden of the world on my shoulders and go to sleep with it. It went on like this for eighteen months." It becomes apparent when reading The Blueprint that it was indeed a monumental undertaking.
World has lost half its wetlands
(11/29/2012) Half of the worlds wetlands have been destroyed in just the last 100 years, says a new report. Published by the Economics of Ecosystems and Biodiversity (TEEB), the report found that of the 25 million square kilometers of wetlands that existed in 1900 just 12.8 million square kilometers now remain. The rate of destruction varies geographically with notable loses in East Asia running at 1.6 per cent per year. In places where aquaculture, over-exploitation (e.g. unsustainable harvesting of fish) and storm damage have been severe, the rate of destruction can be as high as 80 percent.
Investors shouldn't ignore financial risk of environmental damage
(11/29/2012) Environmental damage poses a long-ignored risk to sovereign bonds, according to a new report by the UNEP FI (The United Nations Environment Programme Finance Initiative) and the Global Footprint Network. The report, E-RISC Report, A New Angle on Sovereign Credit Risk, finds that the overuse of natural resources and their degradation has put considerable, and largely unrecognized, risk against national economies.
Legislation leaves future of world's largest temperate rainforest up in the air
(11/27/2012) Although unlikely to pass anytime in the near term, recurring legislation that would hand over 80,000 acres of the Tongass Rainforest to a Native-owned logging corporation has put local communities on guard in Southeast Alaska. "The legislation privatizes a public resource. It takes land that belongs to all of us, and that all of us have a say in the use and management of, and it gives that land to a private for-profit corporation," Andrew Thoms, Executive Director of the Sitka Conservation Society, told mongabay.com in a recent interview.
Mr. Jeremy Grantham and Extreme Weather and The Financial Markets: Opportunities in Commodities and Futures
(11/19/2012) Mr. Jeremy Grantham, co-chair of the Grantham Foundation for the Protection of the Environment and co-founder and chief investment strategist at GMO, published an online column November 14, 2012 in Nature asking scientists to speak out forcefully, publicly and directly on strategies to mitigate climate change. Mr. Grantham’s column titled Be persuasive. Be brave. Be arrested (if necessary) is a clear clarion call for action. As a fellow natural resources scientist, I agree with Mr. Grantham’s intent.
Good Derivatives: A Story of Financial and Environmental Innovation – Book Review
(11/18/2012) In Good Derivatives: A Story of Financial and Environmental Innovation, Richard Sandor, PhD has written a rich compelling first-person narrative of the development of financial futures and environmental markets over the past 40 years. With personal stories describing both failures and successes, Dr. Richard Sandor engages us with details that expand our knowledge of the capacities and limitations capital markets present to us in our efforts to finance climate change mitigation and natural resources conservation.
How to see the forest for the trees: new textbook helps to craft a global understanding of forest economics for all stakeholders
(11/13/2012) Environmental economics is similar to other expanding fields, it turns out. For example, Tauhid Zaman, assistant professor of operations management at the MIT Sloan School of Business, lamented that network analytics far too often focuses on the purely theoretical, and quipped that his colleagues "want to date a model more than they want to model data." William F. Hyde might argue that the same could be said for environmental economists.
Tanzania weighs new soda ash plant in prime flamingo territory
(11/08/2012) In a choice between flamingoes and a soda ash plant, a new report shows that local residents near Lake Natron, Tanzania prefer flamingoes. This is good news for conservationists as the area is the most important breeding site in the world for lesser flamingos (Phoenicopterus minor). While the report shows agreement between residents and conservation groups that the project isn't worth its cost or risk, the Tanzanian government is not giving up yet.
Over 100,000 farmers squatting in Sumatran park to grow coffee
(11/06/2012) Sumatra's Bukit Barisan Selatan National Park—home to the Critically Endangered Sumatran rhinos, tigers, and elephants—has become overrun with coffee farmers, loggers, and opportunists according to a new paper in Conservation and Society. An issue facing the park for decades, the study attempted for the first time to determine the number of squatters either living in or farming off Bukit Barisan Selatan National Park, a UNESCO World Heritage Site; the rough census—over 100,000 people—shocked scientists.
Wealthy nations, excluding U.S., pledge to double funds for biodiversity
(10/22/2012) Although negotiations came down to the wire, nations finally brokered a new deal at the 11th meeting of the Convention on Biological Diversity (CBD) in Hyderabad, India; at its heart is a pledge to double resources from wealthier countries to the developing world by 2015 to conserve embattled species and ecosystems. While no numbers were put on the table, observers say a doubling of current resources would mean around $10-12 billion a year. However, this amount is still far short of what scientists and conservation groups say is necessary to stem current extinctions.
India pledges over $60 million for biodiversity, but experts say much more needed
(10/18/2012) The Prime Minister of India, Manmohan Singh, pledged around $50 million (Rs. 264 crore) for domestic biodiversity protection, reports the Hindu. The pledge came this week at the Convention on Biological Diversity (CBD) meeting in Hyderabad, India. The CBD has set bold goals on stemming the rate of extinction worldwide, but these have suffered from a lack of funding. India also said it had set aside another $10 million (Rs. 50 crore) for biodiversity projects abroad. Still, such funds are far below what scientists say is necessary to stem ongoing extinctions.
Will we need to pull carbon out of the atmosphere to save ourselves?
(10/17/2012) This year saw the Arctic sea ice extent fall to a new and shocking low, while the U.S. experienced it warmest month ever on record (July), beating even Dust Bowl temperatures. Meanwhile, a flood of new research has convincingly connected a rise in extreme weather events, especially droughts and heatwaves, to global climate change, and a recent report by the DARA Group and Climate Vulnerability Forum finds that climate change contributes to around 400,000 deaths a year and costs the world 1.6 percent of its GDP, or $1.2 trillion. All this and global temperatures have only risen about 0.8 degrees Celsius (1.44 degrees Fahrenheit) since the early Twentieth Century. Scientists predict that temperatures could rise between 1.1 degrees Celsius (2 degrees Fahrenheit) to a staggering 6.4 degrees Celsius (11.5 degrees Fahrenheit) by the end of the century.
One in eight people suffer from malnutrition worldwide
(10/16/2012) In a world where technology has advanced to a point where I can instantly have a face-to-face conversation via online video with a friend in Tokyo, nearly 870 million people, or one in eight, still suffer from malnutrition, according to a new UN report. While worldwide hunger declined from 1990 to 2007, progress was slowed by the global economic crisis. Over the last few years, numerous and record-breaking extreme weather events have also taken tolls on food production. Currently, food prices hover just below crisis levels.
Saving the world's species from oblivion will cost around $80 billion a year, but still a good deal
(10/11/2012) If the world is to conserve its wealth of life—species great and small, beautiful and terrible, beloved and unknown—it will cost from $3.41-4.76 billion annually in targeted conservation funds, according to a new study in Science. But that's not all, the cost of protecting and managing the world's conservation areas was estimated at an additional $76.1 billion a year.
First REDD Textbook - Forest and Climate Change: The Social Dimensions of REDD in Latin America – Book Review
(10/08/2012) Thank you Professor Anthony Hall. After many years, we finally have a REDD textbook that can be used in the undergraduate and graduate classroom. Professor Hall has produced an excellent contribution to the growing Reduced Emissions from Deforestation and Forest Degradation (REDD) literature.
World Bank agrees to fund project related to controversial Gibe III dam
(09/27/2012) Originally refusing to provide funding to Ethiopia's controversial Gibe III hydroelectric dam, the World Bank has now announced plans to fund the power lines that will carry generated electricity away from it. In their official statement they report that the lines will "connect Ethiopia’s electrical grid with Kenya’s, create power-sharing between the two countries, reduce energy costs, promote sustainable and renewable power generation [and] better protect the region’s environment...eventually benefiting 212 million people in five countries."
Conflict and perseverance: rehabilitating a forgotten park in the Congo
(09/19/2012) Zebra racing across the yellow-green savannah is an iconic image for Africa, but imagine you're seeing this not in Kenya or South Africa, but in the Democratic Republic of Congo (DRC). Welcome to Upemba National Park: once a jewel in the African wildlife crown, this protected area has been decimated by civil war. Now, a new bold initiative by the Frankfurt Zoological Society (FZS), dubbed Forgotten Parks, is working to rehabilitate Upemba after not only decades of conflict but also poaching, neglect, and severe poverty.
Human society surpasses 'nature's budget' today
(08/22/2012) As of today, August 22nd, humanity has overshot the world's annual ecological budget, according to the Global Footprint Network, which tracks global consumption related to resource availability and sustainability. The organization looks at a variety of data including the world's fisheries, forests, agriculture, water, mining, and greenhouse gas emissions.
Guyana rainforests secure trust fund
(07/30/2012) The nation of Guyana sports some of South America's most intact and least-imperiled rainforests, and a new $8.5 million trust fund hopes to keep it that way. The Guyanese government has teamed up with Germany and Conservation International (CI) to create a long-term trust fund to manage the country's protected areas system (PAS).
Saving 'Avatar Grove': the battle to preserve old-growth forests in British Columbia
(07/23/2012) A picture is worth a thousand words: this common adage comes instantly to mind when viewing T.J. Watt's unforgettable photos of lost trees. For years, Watt has been photographing the beauty of Vancouver Island's ancient temperate rainforests, and documenting their loss to clearcut logging. The photographer and environmental activist recently helped co-found the Ancient Forest Alliance (AFA), a group devoted to saving the island's and British Columbia's (BC) last old-growth while working with the logging industry to adopt sustainable practices. This February the organization succeeded in saving Avatar Grove—which was only discovered in 2009—from being clearcut. The grove, a rare stand of massive and ancient trees named after the popular eco science-fiction movie, has become a popular tourist destination, providing a new economic incentive for communities to protect rather than cut Canada's last great forests.
Experts: sustainable logging in rainforests impossible
(07/19/2012) Industrial logging in primary tropical forests that is both sustainable and profitable is impossible, argues a new study in Bioscience, which finds that the ecology of tropical hardwoods makes logging with truly sustainable practices not only impractical, but completely unprofitable. Given this, the researchers recommend industrial logging subsidies be dropped from the UN's Reducing Emissions from Deforestation and Forest Degradation (REDD+) program. The study, which adds to the growing debate about the role of logging in tropical forests, counters recent research making the case that well-managed logging in old-growth rainforests could provide a "middle way" between conservation and outright conversion of forests to monocultures or pasture.
Climate change increased the probability of Texas drought, African famine, and other extreme weather
(07/11/2012) Climate change is here and its increasing the chances for crazy weather, according to scientists. A prestigious group of climatologists have released a landmark report that makes the dramatic point that climate change is impacting our weather systems—and in turn our food crops, our economies, and even our lives—here-and-now. The new report in the American Meteorological Society is first of what is intended to be an annual offering that will attempt to tease out the connections between climate change and individual extreme weather events, such as heatwaves, droughts and floods.
Wealthy consumption threatens species in developing countries
(07/11/2012) Consumption in wealthy nations is imperiling biodiversity abroad, according to a new study in Nature that investigates the link between international trade and biodiversity decline. The study shows how threats to biodiversity and ecosystems, located primarily in developing countries, can be connected to consumer demand for goods in wealthier nations. Some of the major commodities include coffee, cocoa, soy, beef and palm oil.
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