[net-gold] ENVIRONMENT : MARKETING : PRODUCTS : BUSINESS : ECONOMICS: How Marketplace Economics Can Help Build a Greener World
- From: "David P. Dillard" <jwne@xxxxxxxxxx>
- To: Net-Gold -- Educator Gold <Educator-Gold@xxxxxxxxxxxxxxx>, Educator Gold <Educator-Gold@xxxxxxxxxxxxxxxx>, net-gold@xxxxxxxxxxxxx, Net-Gold <Net-Gold@xxxxxxxxxxxxxxx>, NetGold <netgold@xxxxxxxxxxxxxxx>, Net-Gold <net-gold@xxxxxxxxxxxxxxxx>, K-12ADMINLIFE <K12ADMIN@xxxxxxxxxxxxxxxxxxx>, K12AdminLIFE <K12AdminLIFE@xxxxxxxxxxxxxxx>, MediaMentor <mediamentor@xxxxxxxxxxxxxxx>, Digital Divide Diversity MLS <mls-digitaldivide@xxxxxxxxxxxxxxx>, NetGold <netgold@xxxxxxxxxxxxxxxx>, Net-Platinum <net-platinum@xxxxxxxxxxxxxxx>, Sean Grigsby <myarchives1@xxxxxxxxxxxxxxx>, Temple Gold Discussion Group <TEMPLE-GOLD@xxxxxxxxxxxxxxxxxxx>, Temple University Net-Gold Archive <net-gold@xxxxxxxxxxxxxxxxxxx>, Health Lists -- Health Diet Fitness Recreation Sports Tourism <healthrecsport@xxxxxxxxxxxxxxxx>, Health Diet Fitness Recreation Sports <healthrecsport@xxxxxxxxxxxxxxx>, HEALTH-RECREATION-SPORTS-TOURISM@xxxxxxxxxxxxxxxxxxx
- Date: Mon, 23 Aug 2010 06:56:27 -0400 (EDT)
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ENVIRONMENT :
MARKETING :
PRODUCTS :
BUSINESS :
ECONOMICS:
How Marketplace Economics Can Help Build a Greener World
How Marketplace Economics Can Help Build a Greener World
By Yale Environment 360 at Yale Environment 360
Fri Aug 20, 2010 11:45am EDT
by Daniel Goleman
Reuters
<http://www.reuters.com/article/idUS116344532720100820>
Consumers now have little information about the true ecological impacts of
what they buy. But that may be about to change, as new technologies that
track supply chains are emerging and companies as diverse as Unilever and
Google look to make their products more sustainable.
With climate legislation dead in Congress and the fizzled hopes for a
breakthrough in Copenhagen fading into distant memory, the time seems ripe
for fresh strategies - especially ones that do not depend on government
action.
Here's a modest proposal: radical transparency, the laying bare of a
product's ecological impacts for all to see.
Economic theory applied to ecological metrics offers a novel way to
ameliorate our collective assault on the global systems that sustain life.
There are two fundamental economic principles that, if applied well, might
just accelerate the trend toward a more sustainable planet: marketplace
transparency about the ecological impacts of consumer goods and their
supply chains, and lowering the cost of that information to zero.
First transparency. A maxim in economics holds that transparency makes
markets work more efficiently. This rule has long been applied to price,
but why not also apply it to the ecological impacts of industry and
commerce? At present when it comes to the ecological consequence of the
things we buy, we have information asymmetry, where sellers know far more
than buyers.
This seems about to change. One big mover is WalMart, which last summer
announced it will develop a "sustainability index," a credible rating of
the ecological impacts of the products it sells boiled down into a single
metric that shoppers can use to compare Brand A and Brand B. There are
signs this is more than marketing hype: WalMart has started to pilot
life-cycle analyses of products it carries, and, some say, hopes to make
transparent such data on the environmental and social impacts of suppliers
four levels deep in the chain of vendors. The key, of course, will be to
make sure the cost of quantifying and listing such data is minimal, as
price will remain the primary determining factor for consumers.
The complete article may be read at the URL above.
Sincerely,
David Dillard
Temple University
(215) 204 - 4584
jwne@xxxxxxxxxx
<http://daviddillard.businesscard2.com>
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