9 March 2010 | Luca Del Buono
2010 Year of Biodiversity, Biodiversity, Food and agriculture, Forestry and wood products, Water

 

The United Nations Action Programme (UNEP) has commissioned the Economics of Ecosystems and Biodiversity (TEEB) to calculate the cost of environmental degradation.

The often-elusive term of 'biodiversity loss' will become more concrete as the study aims to calculate the actual economic costs of deforestation and ecosystem destruction by exploring the costs of the alternatives farmers and agribusinesses would be forced to implement as a result of a destabilized environment.

Pavan Sukhdev of the UNEP's Green Economy Initiative leads the study. In a recent interview, he explained how unsustainable environmental practices cost more money over time.

"Unfortunately our current economic systems are not geared to defending or preserving anything that does not carry economic value. We are all the time making trade-offs, like getting rid of land or forest upstream, not realising that the cost downstream may be potentially €11 billion in flood damage."

A lack of a reliable freshwater supply costs additional money as soil loses its health and farms are forced to pump fertilisers and nutrients into their deficient supplies. Flooding increases when forests disappear and no longer absorb rainwater. Without natural bee pollination, artificial methods to pollinate crops are needed.

Sukhdev believes that it is only necessary to show the potential costs that the economy will shoulder if better policies and practices are not implemented. The suggestion of costs and savings will lead governments to develop economic incentives that punish companies that destroy the environment and aid the companies that support sustainable practices.

Costa Rica exemplifies the profitability of sustainable agricultural practices. Over the past 15 years, Costa Rica has supplemented sustainable farming with a fuel tax, and since then, its GDP has increased 4 times. Farmers have found an increased quality and productivity from their land.

Adding a price tag will make the value of nature far more apparent. By understanding the long and short-term costs of improper land-management, farmers and businesses will adapt their practices and techniques to meet the market's demand, and to stay profitable and in business.

Author: Michael Good | Climate Action

Image Provided by :

Jay Carricker | Flickr

blog comments powered by Disqus