Word: costanza
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Dates: during 2010-2019
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...challenge is that our business institutions evolved at a time when nature seemed limitless; the idea of endless natural bounty is embedded within our national identity. "In the past, natural resources were abundant," says Robert Costanza, Director of the Gund Institute for Ecological Economics at the University of Vermont. "We've used up all the frontier. Those days are gone. People are recognizing this, but our institutions haven't caught up." So markets continue to ignore natural capital as if it's of no economic consequence...
According to Costanza, we need different institutions for managing natural capital because of its "public good" aspects. For example, there are systems of payments for ecosystem services, such as compensating farmers who plant trees for carbon sequestration. These could be embedded in common asset trusts, set up to assign property rights to the community rather than private hands. Those who damage ecosystem services would be charged, while those whose land produces services could be paid. Economic incentives can encourage people to preserve natural assets. For example, in Costa Rica U.S. pharmaceutical companies are paying landowners to conserve their properties - essentially...