C

[in orbit]

[in orbit]

[the model]

January 1, 2011

[boom]

C

[k.u.]

COMMERCE

In a capitalist system, commerce fuels the economic engine that:

(a)Transforms raw materials into products for consumption

(b)Distributes goods and services locally, nationally and globally

(c)Provides capital (debt and equity) for nations, businesses and individuals

Examples:• Development of new office building• Expansion of an industrial business• Implementation of light rail system

How do these activities impact the social and environmental?

How does the environmental and social context impact commerce?

VALUE

Value creation drives profitability, feasibility, supply and demand for goods and services:

(a)Determines where the capital goes (which nations, states, cities, industries, businesses, individuals)

(b)Supply side - Establishes pricing mechanisms for materials, labor, services and capital

(c)Demand side - influences consumer decisions about “basket of goods” and business choices on future activities

Examples:• Real estate development• Municipal taxation and budgets

How do these decisions impact the social and environmental?

How does the environmental and social context impact value creation model?

TRADITIONAL ECONOMIC SYSTEM SHORTCOMINGS

Economic system oriented around growth:(a)Growth model does not consider limited natural resources(b)Growth model assumes a larger pie will eventually mean pie for

everyone (c)Developed countries have solved population growth problem and

traded it for consumption problem (20% of pop. = 70% of CO2 emissions)

(d)Technology will eventually overcome any shortcomings in the growth model

World Population Growth: 1 AD to 1994

A New Paradigm WHAT ON EARTH IS WRONG?

RISE OF ECOLOGICAL ECONOMICS

SUSTAINABLE DEVELOPMENT MODEL

Looks at the three components for long term global development:(a)Distinction between growth and development(b)Recognition of connections among consumption, poverty and

environmental degradation (c)National policies and actions to consider global implications (the

ultimate NIMBYism)

The Concept of Sustainability

Objectives of Sustainability