Economics

The terms “capital” and “value” typically have one association – money. But to only associate capital with money would be a gross oversimplification of the true marketplace — of our earth. A truer reflection of the market would be the inclusion of natural capital. Natural capital is defined as the “world’s stocks” of natural assets that include geology, soil, air, water, and all living things. The economy relies heavily on natural capital assets, yet all too often the economy is still seen as separate from the environment. Take a few minutes to watch this video, featuring environmentalist and actor, Adrian Grenier (founder of #stopsucking). Natural capital can be a tricky concept and he does a great job simplifying it.

Unfortunately, our current market system subsidizes environmentally-destructive practices and restricts values-driven and conservation efforts in business.

Every choice we make  plays a role in the global economy,  Nearly everything we buy comes from natural resources; trees, water, coal, minerals, and so on. Our dollar has more power over the fate of our planet than we may believe. But it is true – every choice we make as consumers matters.

So how can we care for our planet and still be consumers? Conscious consumption or making decisions that have a net positive impact on the planet. Conscious consumption takes many forms:

Conservation. First and foremost, buy fewer things. Consuming less means you are conserving natural resources and  preserving them for generations to come. Remember, less is always more when supporting our planet…

Vote with your dollar. That means wherever possible purchase ethically and sustainably made products. This likely means buying fewer things and spending a bit more (since many cheaply-made products are at an artificially low price). Too often companies that have poor practices such as depletion of natural resources, environmental pollution, and worker exploitation are able to put cheap products on the shelves precisely because of their shoddy business practices.   

Divest. It’s not only about how you use your dollar, but also where you put your dollar. Banks lend money for  various projects. When you put your money in a bank you are indirectly funding those projects. It is important to make sure you supports projects aligned with your values. Bank of America, PNC, Wells Fargo, SunTrust, BNP (Bank of the West), and U.S. Bank are funding pipelines across the country. Divesting your money from banks that support environmental harm and putting it into banks that fund better projects is a great way to use your money to make a change. Our partner Green America talks about the importance of social investing, and how your financial choices today can influence a more equitable world tomorrow.

Problem-solve. As you become more aware of how you use the earth’s resources, you will also become more sensitive to important economic issues like global warming and fair wages. Sometimes the solution to these tricky problems isn’t as obvious — that’s why we need your innovation. Know that as a consumer you hold lots of power, so always be thinking about creative ways to employ it. There are other ways to inspire human-centered problem solving if we all just stop and think with intention. DIY, buying less, volunteering, or making other small shifts are great ways to start.

The discussion of “environmental economics” is a relatively recent phenomenon, and plenty of organizations are working to transform economic systems to fit a more sustainable global framework. Friends of the Earth has developed an entire Economics for the Earth program to help advocate for policies and consumer habits that “fund a brighter future” and cut unjust funding through subsidies.

Living sustainably on a budget is possible; it just requires planning and smart budgeting. By spending less on goods that were designed for the dump, you save more to invest in high-quality products that will last a lifetime. By planning ahead and overcoming the temptations of “use and throw away” convenience, we can create a more conscious consumer community.