The Rise of Environmental Economics

env_eco.jpgMore good news for Earth Day: The Economist has two outstanding articles on the rise of Environmental Economics, simply put – accounting for environmental externalities on the balance sheet. Environmental Economics also makes it more obvious that positive environmental moves have economic payoffs that are often bigger than heavyhanded alternatives. For example, as pointed out in the first article, reforesting the steep hillsides that flank the Panama Canal will prevent the erosion that clogs the channel, a cheaper investment than dredging.


20050423issuecov.jpgThe second article talks about the concept of “free market environmentalism”, a philosophy at times controversial, that suggests “Market forces could prove the environment’s best friend—if only greens could learn to love them”. Trends like carbon trading and the valuation of “ecosystemic services” are manifestaions of this kind of bridge-building that both environmentalism and business need. The fact that it’s The Economist’s cover story is the kind of validation that environmentalists need, and ought to take advantage of. (more talk on Worldchanging) Now get outside and have a great weekend!

Nick Aster is a new media architect and the founder of TriplePundit.com

TriplePundit.com has since grown to become one of the web's leading sources of news and ideas on how business can be used to make the world a better place.

Prior to TriplePundit Nick worked for Mother Jones magazine, successfully re-launching the magazine's online presence. He was instrumental in the creation of TreeHugger.com, managing the technical side of the publication for 3 years as well as an active consultant for individuals and companies entering the world of micro-publishing. He earned his stripes working for Gawker Media and Moreover Technologies in the early days of blogging.

Nick holds an MBA in sustainable management from the Presidio School of Management and graduated with a BA in History from Washington University in St. Louis.