Environmental Economics

The Natural and Human Worlds

Environmental sustainability in our world today needs a communal effort and accountability. From small street vendors with wood-burning stoves, to highly polluting lorries that transport heavy goods, there has to be a sense of individual responsibility and vested interest in a sustainable environment.

A novel idea is to create a national asset net worth that not only takes into consideration the tangible assets of the nation such as solid minerals or oil, but also the index of environmental assets such as rain forest in Brazil, carbon footprints by country, pollution reduction from alternative energy.

From the above net worth, a community green bank will be created, mandated to cater to "sustainable environment" businesses and industries in developing countries, enabling previously marginalized consumers to participate in the economic growth of their communities.

By so doing, they can:

  • be vested in their community environmental sustainability,
  • become more productive and grow their businesses,
  • generate wealth for entrepreneurs within their respective communities.

With this assumption, the amount of funds available to the "community green bank" and eventually to the "sustainable environment" businesses and industries is a percentage of each country’s net worth securitized with the World Bank/IMF but indexed by a calculation of tangible asset revenue, aggregated national natural preservations assessed value with a factor of the current year’s Relative Environmental Sustainability Index (RESI) to mention a few.

The index will be part of the asset management education in “econoforce” for small- and medium-sized enterprises, a key process in the “Unleashing the Wealth of Nations” initiative.

In effect, the proposed system balances the ecosystem to some extent; a highly industrialized country has acquired wealth and hence does not need an injection of capital, while on the other hand a less polluted and less industrialized country needs capital infusion to compensate for the global pollution of the industrialized world as a balance of life.

It should be understood, however, that deterioration in a country’s RESI will reduce funding for capital availability to the businesses, so there will be an incentive for all to be environmentally sustainable.