Many believe economic growth is incompatible with ecological
preservation. Green Capital challenges this argument by shifting
our focus away from the scarcity of raw materials and toward the
deterioration of the great natural regulatory functions (such as
the climate system, the water cycle, and biodiversity). Although we
can find substitutes for scarce natural resources, we cannot
replace a natural regulatory system, which is incredibly complex.
It is therefore critical that we introduce a new price into the
economy that measures the costs of damage to these regulatory
functions. This change in perspective justifies such innovations as
the carbon tax, which addresses not the scarcity of carbon but the
inability of the atmosphere to absorb large amounts of carbon
without upsetting the climate system. Brokering a sustainable peace
between ecology and the economy, Green Capital describes a range of
valuation schemes and their contribution to the goals of green
capitalism, proposing a new approach to natural resources that
benefits both businesses and the environment.
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