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News articles on economy
Mongabay.com news articles on economy in blog format. Updated regularly.
(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.
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.
Indigenous groups protest hydropower congress as controversy hits meeting in Malaysia
(05/22/2013) The opening of the International Hydropower Association (IHA) World Congress in the Malaysian state of Sarawak was marred today by indigenous protests and controversy after a local indigenous leader was barred from attending a pre-conference workshop. Over 300 people from local indigenous people protested the ongoing construction of around a dozen mega-dams in the state that threaten to flood traditional lands, force villages to move, and upend lives in the state. The Sarawak hydropower plans are some of the most controversial in the world—making the choice of Kuching, Sarawak for the IHA meeting an arguably ironic one—with critics contending that the dams are have been mired in political corruption, including kickbacks and bribes. IHA brings together dam builders, banks, and various related organizations worldwide every two years.
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.
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.
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.
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.
United States ranks near bottom on first ever energy efficiency scorecard
(08/15/2012) Last month, the American Council for an Energy Efficient Economy released its first ever international energy efficiency scorecard, which gave the United Kingdom the top score. Using data points honed over years of rating U.S. states, the organization hoped to inspire nations to learn from each others' effective policies, as well as encourage "friendly competition" in the spirit of lowering global carbon emissions. At number one, the United Kingdom achieved a score of 67 out of 100 points, followed by Germany, Italy and Japan. As a whole, the European Union tied with China and Australia, and nine points below them, the United States came in with a score of 47 out of 100.
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.
Agricultural area larger than Texas has been 'land-grabbed'
(06/26/2012) Compiling over 1,000 foreign land deals from 2000-2010, a new report finds that 702,000 square kilometers (271,043 square miles) of agricultural land worldwide has been sold-off to foreign governments or international corporations, an area larger than Texas. The report by the Worldwatch Institute finds that such land deals, often referred to as "land grabbing," have declined since a peak in 2009, but still remain high.
Rio+20 and economic perils in Europe: opportunity for linkage
(06/19/2012) This month, momentous events will occur on the global scene that will set the tone for whether 2012 will be a hopeful year or one in which dislocations and disconnects are further exacerbated by political failings. The EU will decide on its fiscal and monetary union that hinges on Greece’s recent June election, which backed the political party that wants to stay in the Euro zone, but insists on adjustments to the earlier-negotiated economic rescue package.
Ten African nations pledge to transform their economies to take nature into account
(06/11/2012) Last month ten African nations, led by Botswana, pledged to incorporate "natural capital" into their economies. Natural capital, which seeks to measure the economic worth of the services provided by ecosystems and biodiversity—for example pollination, clean water, and carbon—is a nascent, but growing, method to curtail environmental damage and ensure more sustainable development. Dubbed the Gaborone Declaration, the pledge was signed by Botswana, Liberia, Namibia, Mozambique, Rwanda, Gabon, Ghana, Kenya, South Africa, and Tanzania following a two day summit.
Scientists: if we don't act now we're screwed
(06/07/2012) Scientists warn that the Earth may be reaching a planetary tipping point due to a unsustainable human pressures, while the UN releases a new report that finds global society has made significant progress on only four environmental issues out of ninety in the last twenty years. Climate change, overpopulation, overconsumption, and ecosystem destruction could lead to a tipping point that causes planetary collapse, according to a new paper in Nature by 22 scientists. The collapse may lead to a new planetary state that scientists say will be far harsher for human well-being, let alone survival.
Want to stop climate change: buy fossil fuel deposits
(06/07/2012) Governments, NGOs, and others fighting climate change should consider buying coal and oil deposits—not to exploit them, but to keep them from being exploited, according to a bold new policy paper in the Journal of Political Economy. Economist Bard Harstad with the Kellogg School of Management argues that climate coalitions could quickly slash carbon emissions by purchasing and conserving marginal fossil fuel deposits, a strategy that would solve the current problem of carbon leakage, i.e. when cutting emissions in one place pushes others to burn more elsewhere. Given that carbon emissions rose to a new record last year—31.6 gigatons—and carbon has hit 400 parts per million (ppm) in the atmosphere for the first time in at least 800,000 years, Harstad's analysis comes at a time when scientists are warning that urgent and bold action is needed to mitigate global climate change before it becomes irreversible.
Massive economic growth does little for happiness in China
(05/29/2012) Economic growth alone may not raise happiness, according to a recent study in the Proceedings of the National Academy Science (PNAS). Despite a stunning economic growth rate of around 10 percent per year over the last two decades, China's people have not seem a big boost in their overall life satisfaction.
Charting a new environmental course in China
(05/21/2012) Founded in 1951, The Nature Conservancy (TNC) works in more than 30 countries and has projects in all 50 of the United States. The Conservancy has over one million members, and has protected more than 119 million acres of wild-lands and 5,000 miles of rivers worldwide. TNC has taken an active interest in China, the world's most populated nation, and in many important ways, a critical center of global development. The following is an interview with multiple directors of The Nature Conservancy's China Program.
Consumption, population, and declining Earth: wake-up call for Rio+20
(05/15/2012) Currently, human society is consuming natural resources as if there were one-and-a-half Earths, and not just a single blue planet, according to the most recent Living Planet Report released today. If governments and societies continue with 'business-as-usual' practices, we could be consuming three years of natural resources in 12 months by 2050. Already, this ecological debt is decimating wildlife populations worldwide, disproportionately hurting the world's poor and most vulnerable, threatening imperative resources like food and water, heating up the atmosphere, and risking global well-being.
Can loggers be conservationists?
(05/10/2012) Last year researchers took the first ever publicly-released video of an African golden cat (Profelis aurata) in a Gabon rainforest. This beautiful, but elusive, feline was filmed sitting docilely for the camera and chasing a bat. The least-known of Africa's wild cat species, the African golden cat has been difficult to study because it makes its home deep in the Congo rainforest. However, researchers didn't capture the cat on video in an untrammeled, pristine forest, but in a well-managed logging concession by Precious Woods Inc., where scientist's cameras also photographed gorillas, elephants, leopards, and duikers.
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