Seeing The Elephant Part 6

In addition to deforestation's long-term costs, ecosystem degradation comes with very real immediate human and financial costs.The burning of 10 million hectares of Indonesia's forests in 1997 resulted in additional health care costs of $9.3 billion and affected some 20 million people.28 Considering the costs to replant old growth forests as well as the human costs a.s.sociated with deforestation, you probably paid less for the teak table in your living room than you should have. Legislation imposing the cost of replanting trees on logging companies would eventually pa.s.s the true higher price along to the consumer and curb incentives to overconsume.

Biofuels: Are They the Answer?

An increasingly substantial amount of forest is cleared to grow crops such as corn, soy, and sugarcane that can be converted to biofuels (thus reducing our fossil fuel reliance). Agribusiness companies are rapidly expanding fuel crop plantations into the Amazon rainforest and other tropical ecosystems throughout South America, Southeast Asia, the Pacific, and Africa. The expansion of palm oil (a source of biodiesel) farming is the primary cause of deforestation in Indonesia, where forests are disappearing at a rate of more than 2.8 million hectares a year-an area half the size of Belgium.29 In other parts of the world, logging companies convert forests into sugarcane, corn, and other ethanol imputs. In other parts of the world, logging companies convert forests into sugarcane, corn, and other ethanol imputs.30 While bioenergy is seen as part of the solution to climate change, sustainable use of bioenergy requires balancing many factors, including compet.i.tion between food security and energy security, allocation of scarce water resources, effects on poverty and rural development, as well as the impacts on the biodiversity. While bioenergy is seen as part of the solution to climate change, sustainable use of bioenergy requires balancing many factors, including compet.i.tion between food security and energy security, allocation of scarce water resources, effects on poverty and rural development, as well as the impacts on the biodiversity.

A study commissioned by the Swiss government examined 26 biofuels and identified striking differences in the environmental costs of different crops.31 According to the study, fuels made from U.S. corn, Brazilian soy, and Malaysian palm oil actually may be According to the study, fuels made from U.S. corn, Brazilian soy, and Malaysian palm oil actually may be worse than fossil fuels worse than fossil fuels in terms of greenhouse gas emissions per unit of energy created (see in terms of greenhouse gas emissions per unit of energy created (see Table 7.3 Table 7.3). Biofuels from residual products, such as recycled cooking oil and ethanol from gra.s.s or wood, fared better. As part of a sustainable agriculture and energy policy, the total environmental impact of these fuels must be considered.

Table 7.3 How Green Are Biofuel? Use of Resources During Growing, and Refining of Fuel How Green Are Biofuel? Use of Resources During Growing, and Refining of Fuel SOURCE: Conservation Biology.

So, the answer to the question-are biofuels good for the environment? -is maybe; it depends on what the fuel comes from and where it is grown. A hectare of cane in Brazil can produce around four tons of ethanol, equivalent to around 5,000 liters of fossil fuel. After taking into account the fossil carbon needed to make the ethanol, approximately 13 tons less of carbon dioxide (CO2) are released from fossil carbon for every hectare of land converted to sugar cane.32 Corn, however, is not nearly as efficient. Corn, however, is not nearly as efficient.

In addition to biofuels' questionable impact on CO2 emissions, the UN believes ethanol has contributed 10 to 15 percent of food price inflation, while the International Food Policy Research Inst.i.tute suggests corn prices have risen 25 to 33 percent because of biofuels. emissions, the UN believes ethanol has contributed 10 to 15 percent of food price inflation, while the International Food Policy Research Inst.i.tute suggests corn prices have risen 25 to 33 percent because of biofuels.33 According to the Rainforest Action Network, the corn required to make enough ethanol to fill a 25-gallon SUV tank once could feed one person for a year. According to the Rainforest Action Network, the corn required to make enough ethanol to fill a 25-gallon SUV tank once could feed one person for a year.34 Amid rising food prices, isn't there a better use for this land? Amid rising food prices, isn't there a better use for this land?

Agriculture: No Such Thing as a Free Lunch In addition to changing our economy, the substantial ma.s.s of land dedicated to agriculture has literally changed the face of the planet. Significant land, water, and labor are dedicated to agriculture and food production. Agriculture is responsible for approximately 70 percent of water use worldwide.35 In some circ.u.mstances, diverting land for agricultural use has resulted in substantial habitat loss and habitat fragmentation (dividing a habitat into pieces that are too small to maintain populations of some species), negatively impacting biodiversity. In some circ.u.mstances, diverting land for agricultural use has resulted in substantial habitat loss and habitat fragmentation (dividing a habitat into pieces that are too small to maintain populations of some species), negatively impacting biodiversity.36 The use of artificial fertilizers and pesticides is altering the chemistry of lakes, rivers, and streams. These pollutants lessen the safety of drinking water, harm fish and wildlife, and lead to the spread of oxygen-depleted "dead zones." Use of nitrogen fertilizer, considered a major cause of these zones, has increased eightfold since 1960. The use of artificial fertilizers and pesticides is altering the chemistry of lakes, rivers, and streams. These pollutants lessen the safety of drinking water, harm fish and wildlife, and lead to the spread of oxygen-depleted "dead zones." Use of nitrogen fertilizer, considered a major cause of these zones, has increased eightfold since 1960.37 The use of pesticides also creates human health challenges. For example, in Central America, bananas are grown in huge, monoculture plantations where pesticides are applied directly by workers or through aerial spraying. The chemicals pollute the water supply and have been linked with increased cancer rates in local communities. A U.S. jury awarded $3.3 million to six workers who claimed they were left sterile by a pesticide used at a banana plantation in Nicaragua operated by Dole Fresh Fruit Co., a U.S. multinational corporation.38 Beyond questions of land use and pesticides, the age-old (and increasingly relevant today) question that agricultural policy must answer remains: How best to get food to hungry mouths? In his famous 1798 essay, Thomas Malthus predicted that the human population would grow without end, while a finite amount of arable land would prevent the global food supply from growing in stride. Malthus prophesied widespread famine, disease, and war would result. Fortunately, Malthus failed to predict the immense demographic and agricultural changes that were to follow the Industrial Revolution, and his bleak projections were largely avoided thanks to slowing population growth and technological innovation on the farm.

Although Malthus failed to get it right the first time around, his followers resurface whenever food supplies are looking low. In the early 1970s, a sharp jump in global population growth (averaging 2 percent per year) caused food prices to rise dramatically; however, the "green revolution"39 eventually mitigated this famine scare. Once again, as grain prices skyrocketed in early 2008, neo-Malthusians seemed justified in singing a refrain of "I told you so." According to World Bank data, between January 2000 and March 2008, grain prices had tripled and fertilizer prices had quintupled. eventually mitigated this famine scare. Once again, as grain prices skyrocketed in early 2008, neo-Malthusians seemed justified in singing a refrain of "I told you so." According to World Bank data, between January 2000 and March 2008, grain prices had tripled and fertilizer prices had quintupled.40 In the first four months of 2008 alone, the cost of rice rose 141 percent. The World Bank announced that 33 countries are confronting food crises. In Haiti, protesters chanting "we're hungry" forced the prime minister to resign; 24 people were killed in riots in Cameroon. Food riots have also erupted in Mexico, Morocco, Egypt, Cote d'Ivoire, Guinea, Mauritania, Senegal, Uzbekistan and Yemen, while Vietnam, Cambodia, India, and Egypt have restricted rice exports to drive down domestic prices. Rising food prices have in turn generated high inflation rates, noticeably in Asia. In Vietnam, the year-on-year rate of consumer price inflation reached 19.4 percent in March 2008. Inflation in Pakistan hit 11.3 percent in February; in China, 8.7 percent in February; and in Indonesia, 8.2 percent. In the first four months of 2008 alone, the cost of rice rose 141 percent. The World Bank announced that 33 countries are confronting food crises. In Haiti, protesters chanting "we're hungry" forced the prime minister to resign; 24 people were killed in riots in Cameroon. Food riots have also erupted in Mexico, Morocco, Egypt, Cote d'Ivoire, Guinea, Mauritania, Senegal, Uzbekistan and Yemen, while Vietnam, Cambodia, India, and Egypt have restricted rice exports to drive down domestic prices. Rising food prices have in turn generated high inflation rates, noticeably in Asia. In Vietnam, the year-on-year rate of consumer price inflation reached 19.4 percent in March 2008. Inflation in Pakistan hit 11.3 percent in February; in China, 8.7 percent in February; and in Indonesia, 8.2 percent.41 Since the last food scare, population growth slowed to 1.2 percent, 42 42 which would ostensibly suggest the world's food system should be able to cope with the challenge. But a new twist on the neo-Malthusian argument suggests that changing lifestyles-not an increase in head count but an increase in food consumption per head (shown in which would ostensibly suggest the world's food system should be able to cope with the challenge. But a new twist on the neo-Malthusian argument suggests that changing lifestyles-not an increase in head count but an increase in food consumption per head (shown in Table 7.4 Table 7.4)-could lead to the food system's downfall. In all regions outside of Sub-Saharan Africa, food production per capita has increased over the last two decades. Yet, despite overall global increases in the amount of food available per capita, overconsumption and imbalances in the global agricultural and food distribution systems mean that even in this age of abundance, when one billion people are overweight, more than 800 million people remain undernourished.43 According to the UN Food and Agricultural Organization, Americans eat an average of 3,770 calories per capita a day compared with an average of 2,440 calories consumed per capita in India.44 Moreover, the United States is the largest consumer of beef-an extremely inefficient source of calories. (Cutting out the middleman in the grain-cow-man food chain makes the process Moreover, the United States is the largest consumer of beef-an extremely inefficient source of calories. (Cutting out the middleman in the grain-cow-man food chain makes the process 54 times 54 times more efficient in terms of calories. more efficient in terms of calories.45) Traditionally, demand for food was thought to behave differently than that for other commodities. Engel's Law states that as income rises, the amount devoted for basic food typically declines. But the West's ever-expanding appet.i.tes, and waistlines, seem to be proving Engel wrong. If newly affluent Asian consumers begin to resemble their Western counterparts, indeed, greater trouble could be brewing. (See Table 7.5 Table 7.5.) The causes of the most recent food crisis-higher meat consumption, the dedication of more land for corn and other biofuel crops, and higher prices for agricultural inputs and global speculation-were exacerbated by paltry policy cure-alls in the form of inefficient subsidies and export caps. For example, the United States continues to subsidize domestic ethanol production, a wrongheaded attempt to grow more fuel, which used up a third of 2008's corn crop.46 Food export bans have proliferated, tightening global food markets. Forty-eight of the 58 countries whose reactions are tracked by the World Bank have imposed price controls, consumer subsidies, export restrictions, or lower tariffs. Food export bans have proliferated, tightening global food markets. Forty-eight of the 58 countries whose reactions are tracked by the World Bank have imposed price controls, consumer subsidies, export restrictions, or lower tariffs.47 President of the World Bank Robert Zoellick believes that food inflation could push at least 100 million people into poverty. President of the World Bank Robert Zoellick believes that food inflation could push at least 100 million people into poverty.4849 While the rise of short-term commodity prices (including oil and food) has slowed, it already proved to be a devastating blow for the world's poorest, who often spend more than half of their income on food. While the rise of short-term commodity prices (including oil and food) has slowed, it already proved to be a devastating blow for the world's poorest, who often spend more than half of their income on food.

Table 7.4 Percent of Food Production and Consumption by Country, G7 and E7 Percent of Food Production and Consumption by Country, G7 and E7 SOURCE: FAO Statistical Yearbook, 2005-2006 Table 7.5 2006 Consumption of Selected Goods (kg/person) by Country 2006 Consumption of Selected Goods (kg/person) by Country SOURCE: U.S. Department of Agriculture.

In the short run, emergency relief is the only Band-Aid for a food crisis. Despite the spiraling prices, farmers cannot increase output because they are unable to increase production. Short-term aid is not a subst.i.tute for long-term solutions, however. In the longer term, greater investment in rural infrastructure, appropriate technology, and easier access to credit for farmers are among the options on the table. Currently, market distortions that keep farmers from benefiting from higher food prices are the fiercest stumbling block in the fight against world hunger. The International Monetary Fund and the World Bank must play leading roles in discussions to improve both industrial and developing country policies, as well as in lending to the agricultural sector in poorer and middle-income countries to encourage and support good policies. And, as Chapter 2 addressed, the Doha rounds of WTO need to hammer out rich-world farm subsidies.

On the consumer front, eating less food-especially less red meat-makes the food chain more efficient. The resources required to produce meat outstrip that for grain or vegetables. One kilogram of bread requires about 1,000 liters of water to produce, while one kilogram of beef requires about 15,000 liters. Livestock production is estimated to be responsible for more climate change gases than all the motor vehicles in the world, accounting for 18 percent of human induced greenhouse gas emissions.50 But small moves, short of converting to vegetarianism, could help make the food chain more efficient. Beef cattle raised organically on gra.s.s emit 40 percent fewer greenhouse gases and use 85 percent less energy to produce beef than cattle fed on grain. But small moves, short of converting to vegetarianism, could help make the food chain more efficient. Beef cattle raised organically on gra.s.s emit 40 percent fewer greenhouse gases and use 85 percent less energy to produce beef than cattle fed on grain.51 In Latin America, 70 percent of former forests in the Amazon have been turned over to grazing. The seven billion livestock animals in the United States alone consume five times as much grain as is consumed directly by the entire U.S. population. In Latin America, 70 percent of former forests in the Amazon have been turned over to grazing. The seven billion livestock animals in the United States alone consume five times as much grain as is consumed directly by the entire U.S. population.52 Techno-Foods: A Solution to World Hunger?In the last half-century, technology has transformed farming, one of the most fundamental human activities. While it took nearly 1,000 years for wheat yields to increase from 0.5 to 2 metric tons per hectare, in only 40 years, wheat jumped from two to six metric tons per hectare. During the "Green Revolution" of the 1960s, improved seeds, new farm technology, and better irrigation and chemical fertilizers spread throughout the developing world.The modern seed varieties flourish with controlled irrigation and petrochemical fertilizers, dramatically improving harvests and creating more food. FAO data indicate that for all developing countries, wheat yields rose by 208 percent from 1960 to 2000; rice jumped 109 percent; corn was up 157 percent; potatoes 78 percent; and ca.s.sava yields increased more than 36 percent.aeBefore the 1960s, conventional wisdom held that agricultural technology does not travel well. It is either too climate specific, as in the case of biological technology, or too sensitive to input prices, as with mechanical technology.af Well-funded government and NGO efforts helped to research these new technologies as well as develop infrastructure. Overall, it was estimated that 40 percent of all farmers in the Third World were using Green Revolution seeds by the 1990s, and an even higher percentage had adopted its watering and fertilizer techniques. Well-funded government and NGO efforts helped to research these new technologies as well as develop infrastructure. Overall, it was estimated that 40 percent of all farmers in the Third World were using Green Revolution seeds by the 1990s, and an even higher percentage had adopted its watering and fertilizer techniques.agThe next wave of innovation came in the early 1990s, when genetically modified (GM) crops became widespread. GM plants can be engineered to be tolerant to the herbicides and insecticides or for other desirable traits. In 2007, 12 million farmers from 23 countries planted GM crops (1.7 million farmers more than in 2006). Ninety percent of these farmers were small and resource-poor farmers from developing countries.ah While most GM crops are grown in industrial countries, the proportion now grown in the developing world has increased consistently every year, especially in countries like India, the Philippines, Brazil, Paraguay, Uruguay, and South Africa. GM crops not only lead to higher yields but also to a reduction of pesticide use, which reduces their agricultural footprints. (See While most GM crops are grown in industrial countries, the proportion now grown in the developing world has increased consistently every year, especially in countries like India, the Philippines, Brazil, Paraguay, Uruguay, and South Africa. GM crops not only lead to higher yields but also to a reduction of pesticide use, which reduces their agricultural footprints. (See Figure 7.2 Figure 7.2.)Figure 7.2 Global Area of GM Crops, 1996 to 2007, Industrial and Developing Countries Global Area of GM Crops, 1996 to 2007, Industrial and Developing CountriesSOURCE: Clive James, 2007.[image]Since GM plants are grown on open fields, there have been worries of cross-pollination creating "super-weeds" or other unintended side effects. Much of the controversy surrounding GM crops, however, is ethical-while modifying a plant seems mundane, applying genetic engineering to animals or people is a scary proposition for some.Yet what is undeniable is that GM crops are helping to feed more people and use less land, water, and pesticides to do it. Although the dual "green and gene" wave has revolutionized global agriculture, small farmers who cannot afford rising fertilizer prices or new seed varieties seek new options. Consider the system of rice intensification (SRI), a relatively low-tech but novel practice with great potential.Rice, a staple food for more than half of the world's population, is a unique grain, amazingly tolerant to flooding. The conventional irrigated rice cultivation method capitalizes on this property, flooding rice paddies to reduce the amount of labor needed to weed the fields. Under this method, however, rice requires up to five times the irrigation withdrawals needed by the world's two other main cereal staples (corn and wheat) combined.SRI involves using compost or manure (not synthetic fertilizers) in un-flooded nurseries. Under SRI, seedlings are transplanted one by one with wide s.p.a.cing between each. Weeding, watering, and the timing of transplantations are increasingly important. The World Wide Fund for Nature (WWF) found that SRI has helped increase yields by more than 30 percent, to four to five tons per hectare from the current average of three tons per hectare, while using 40 percent less water than conventional methods.From techno-food to low-tech, modern agricultural science has come a long way in keeping us fed. Balancing the food needs with sustainable agriculture will become even more important as the world grows wealthier each year, and more than 2.5 billion people are expected to inhabit the planet by 2050.

Water Even among the most eco-conscious, "blue issues"-those concerning the health of our seas, rivers, and lakes-are often overshadowed by "green" land concerns. Evidence of our terrestrial bias abounds: Less than 1 percent of the ocean is protected by marine parks, compared with 12 percent of land.53 However, the health of the sea is essential to the global economy as well as to human nourishment.We fish there; we transport goods there; and we already produce eco-friendly energy there via wave farms. Yet we are rapidly depleting fish stocks and, through pollution, changing the temperature and composition of our oceans. However, the health of the sea is essential to the global economy as well as to human nourishment.We fish there; we transport goods there; and we already produce eco-friendly energy there via wave farms. Yet we are rapidly depleting fish stocks and, through pollution, changing the temperature and composition of our oceans.

Freshwater (water with less than 0.5 parts per thousand of dissolved salt) is also suffering from changing composition and depletion.The fresh water found in aquifers, ponds, lakes, and rivers is essential to health, disease control, agriculture, transportation and industry. Hydroelectric dams harness its energy. Yet less than 3 percent of the Earth's water is fresh (and only a fraction of that is readily accessible), making the availability of this precious resource one of the primary determinants of where and how people can live. In the past, people have not only moved for it but also fought for it. Indeed, water bears important linkages to immigration and security, as well as health, trade, and poverty.

Freshwater The fresh water issues faced around the globe can be grouped into two general categories: those of quant.i.ty and quality.The two sets of issues are often interrelated and both have significant ramifications for the standard of living. According to the OECD, by 2025, global water use will rise by up to 30 percent in developing countries and more than 10 percent in the developed world.54 The population living in water-stressed areas is set to double during the period between 1995 and 2025, and by 2030 some two-thirds of the world's inhabitants may experience moderate to high water stress. The population living in water-stressed areas is set to double during the period between 1995 and 2025, and by 2030 some two-thirds of the world's inhabitants may experience moderate to high water stress. 55 55 More than 80 countries now have water shortages that threaten health and economies, while 40 percent of the world-more than two billion people-have limited access to clean water or sanitation. More than 80 countries now have water shortages that threaten health and economies, while 40 percent of the world-more than two billion people-have limited access to clean water or sanitation.

The International Inst.i.tute of Tropical Agriculture estimates that about a third of the population of sub-Saharan Africa, that is 300 million people, will suffer from malnutrition because of intensifying drought by 2010.56 When combined with the current spike in commodities prices, drought has proved devastating. For example, drought in parts of Somalia and poor rainfall in others meant domestic food production was well below normal. Somalia already imports more than half its grain needs, and soaring commodity prices and a weakening currency have made those staples 375 percent more expensive than a year ago, according to the UN's Food and Agriculture Organization. When combined with the current spike in commodities prices, drought has proved devastating. For example, drought in parts of Somalia and poor rainfall in others meant domestic food production was well below normal. Somalia already imports more than half its grain needs, and soaring commodity prices and a weakening currency have made those staples 375 percent more expensive than a year ago, according to the UN's Food and Agriculture Organization. 57 57 Nor is the United States exempt from the problems of drought: In May of 2008, Northern California's East Bay Munic.i.p.al Utility District had to pa.s.s its first water-rationing resolution in 16 years. Nor is the United States exempt from the problems of drought: In May of 2008, Northern California's East Bay Munic.i.p.al Utility District had to pa.s.s its first water-rationing resolution in 16 years.58 And many may face a dry future: California and the other arid states of the western United States are expected to suffer from severe drought. And many may face a dry future: California and the other arid states of the western United States are expected to suffer from severe drought.59 Computer models by the Hadley Center for Climate Prediction and Research predict a 3 percent to 18 percent increase in the amount of the Earth's surface that will be exposed to "extreme" drought by 2100; 40 percent of the world will suffer from "severe" drought, up from the current 18 percent and half the world will suffer from "moderate" drought. Computer models by the Hadley Center for Climate Prediction and Research predict a 3 percent to 18 percent increase in the amount of the Earth's surface that will be exposed to "extreme" drought by 2100; 40 percent of the world will suffer from "severe" drought, up from the current 18 percent and half the world will suffer from "moderate" drought.60 While some areas are naturally water-poor, drought can often result from poor policy choices. Agricultural policy is perhaps the key water offender. According to the WWF, Australian policies encouraging the growth of cotton in the 1960s, for example, and the advent of large-scale irrigation led to a dramatic over-allocation of water resources, resulting in a "range of dramatic natural resource impacts . . . including irrigation-induced salinity, growing evidence of decline in native fish populations, loss of vegetation, degradation of soils, and water quality decline resulting in algal blooms."61 In the United States, nearly a quarter of California's irrigation water is dedicated to alfalfa, which is harvested mostly for hay to feed dairy livestock and is a low-value crop that accounts for only 4 percent of state farming revenues.62 That means California devotes 20 percent of its water supply to a crop that generates less than one-tenth of one percent of the state's economy. That means California devotes 20 percent of its water supply to a crop that generates less than one-tenth of one percent of the state's economy. 63 63 And what's worse, many California farmers still pay the government between $2 and $20 per acre-foot for irrigation water, which is as little as 10 percent of the water's full cost. And what's worse, many California farmers still pay the government between $2 and $20 per acre-foot for irrigation water, which is as little as 10 percent of the water's full cost.64 Taxpayers foot the rest of the bill. Taxpayers foot the rest of the bill.

Or consider rising economic power China's water situation. Northern China is home to two-thirds of the country's cropland but only one-fifth of its water. As competing demands for water are made by cities, industry, and agriculture, the land is drying up. Between 1991 and 1996, the water table beneath the north China plain fell by an average of 1.5 meters a year, yet Chinese officials insist on subsidizing wheat production in the north to maintain grain self-sufficiency. Likewise, in the United States, farmers pay significantly lower prices per acre-foot of water than households, leading to the growth of water-intensive crops in desert areas.

Although not quite as exaggerated, poorly designed consumer water pricing schemes also lead to inefficient water use. Water pricing varies from country to country, depending largely on whether the water company is privatized or state-owned. Munic.i.p.al water use is metered in most countries, but in some, such as most parts of Egypt and Lebanon and even certain parts of the United States, a flat-rate tariff is used. A century ago, the average American used only about 10 gallons of water a day, but today, Americans use 100 gallons a day per person, causing stresses on our sources of drinking water .65 Applying metered and full cost pricing (meaning factoring all costs-past and future, operations, maintenance, and capital costs-into prices) would certainly help. Applying metered and full cost pricing (meaning factoring all costs-past and future, operations, maintenance, and capital costs-into prices) would certainly help.

Inefficient infrastructure is also a leading water waster. Often, publicly held water infrastructure is woefully outdated and water management systems are plagued by waste and inefficiency. It is common for cities to lose 20 to 50 percent of their water to leaks and other problems in the distribution system.66 Taiwan, for example, loses nearly two million cubic meters of water a day to leakage. Taiwan, for example, loses nearly two million cubic meters of water a day to leakage.67 The good news is that fixing the problem will be a sound investment. The OECD estimates that halving the proportion of people without access to improved water sources by 2015 would produce benefits nine times the costs incurred. The good news is that fixing the problem will be a sound investment. The OECD estimates that halving the proportion of people without access to improved water sources by 2015 would produce benefits nine times the costs incurred.68 As for issues of quality, while clean water availability has increased in many regions of the world, half of the urban population in Africa, Asia, Latin America, and the Caribbean suffers from contaminated water. In the United States, 100 percent of the population has access to water, and 83 percent has proper sanitation. Compare this with 4 and 1 percent, respectively, in Afghanistan.69 Even in middle income countries, substantial segments of the population lack adequate access to water and sanitation: 79 percent of the population has access to water and 45 percent has proper sanitation in Brazil, while those numbers fall to 69 percent and 22 percent, respectively, in China. Even in middle income countries, substantial segments of the population lack adequate access to water and sanitation: 79 percent of the population has access to water and 45 percent has proper sanitation in Brazil, while those numbers fall to 69 percent and 22 percent, respectively, in China.

The international aspect of these policy and infrastructure investment choices cannot be ignored.There are more than 250 trans-boundary basins, accounting for 60 percent of the earth's freshwater volume.70 Tensions between countries that share a river basin may hinder sustainable development, indirectly driving poverty, migration, and social instability. Tensions between countries that share a river basin may hinder sustainable development, indirectly driving poverty, migration, and social instability.71 Water conflicts also have the potential to exacerbate other nonwater-related stresses, like increased migration, poverty, and border tensions. Such is the case in India and Bangladesh, where the two neighboring states have long bickered over the Ganges River . Water conflicts also have the potential to exacerbate other nonwater-related stresses, like increased migration, poverty, and border tensions. Such is the case in India and Bangladesh, where the two neighboring states have long bickered over the Ganges River .72 Despite a recent treaty signed in 1996, the failure of the two sides to cooperate has left the Sundarban wetlands and mangrove forests seriously threatened. High levels of a.r.s.enic threaten the population that draws drinking water from the Ganges. Environmental stress has in part provoked more than two million Bangladeshis to emigrate to neighboring regions of India, where in turn, this large influx has led to numerous ethnic conflicts. In the Indian border state of a.s.sam, more than 4,000 people were killed in a series of violent incidents in the early 1980s, and tensions continue today. Despite a recent treaty signed in 1996, the failure of the two sides to cooperate has left the Sundarban wetlands and mangrove forests seriously threatened. High levels of a.r.s.enic threaten the population that draws drinking water from the Ganges. Environmental stress has in part provoked more than two million Bangladeshis to emigrate to neighboring regions of India, where in turn, this large influx has led to numerous ethnic conflicts. In the Indian border state of a.s.sam, more than 4,000 people were killed in a series of violent incidents in the early 1980s, and tensions continue today.73 Without proper freshwater management, riparian conflict is likely to become a greater challenge in the future. In some cases, technological fixes-including desalinization plants, which are currently too pricey for all but a few wealthier regions-may be able to help lessen water woes. But for arid regions across the globe, reforming water-intensive agricultural policy will be key.

Fisheries Today we are just beginning to dip our toes into the almost boundless potential of our seas. From desalinization plants, to fisheries and wave farms, which create energy boasting a cost-per-kWh equal to that of nuclear power by using freestanding turbine technologies, 74 74 our oceans could play an essential role in alleviating many of our resource deficits, but only if they're better cared for. our oceans could play an essential role in alleviating many of our resource deficits, but only if they're better cared for.

Of these commercial uses of the sea, fishing has been by far the most economically significant. Consider fisheries the farms of the sea. They are not just a source of food, but also an important source of foreign exchange and jobs. During the past three decades, employment in fishing and fish farming has grown faster than the world's population and faster than employment in agriculture.75 In 2004, an estimated 41 million people worked as fishers and fish farmers, most of these in developing countries.World value of fish exports nearly tripled between 1976 and 2004, valued at over $71.5 billion in 2004. In 2004, an estimated 41 million people worked as fishers and fish farmers, most of these in developing countries.World value of fish exports nearly tripled between 1976 and 2004, valued at over $71.5 billion in 2004. 76 76 According to the FAO, human consumption of fish increased from 93.6 million tons in 1998 to 100.7 in 2002, providing 2.6 billion people with at least 20 percent of their average per capita animal protein intake. According to the FAO, human consumption of fish increased from 93.6 million tons in 1998 to 100.7 in 2002, providing 2.6 billion people with at least 20 percent of their average per capita animal protein intake.77 Despite their importance to the economy and to human nutrition, the health of world's fisheries has deteriorated, with 76 percent of the world's fish stocks fished at or beyond their sustainable limits. 78 78 Numerous studies underscore an alarming decline in fish stocks, although the percentage of stocks exploited at or beyond their maximum sustainable levels varies greatly by region. In major fishing areas including the Western Central Atlantic, the Eastern Central Atlantic, the Northwest Atlantic, the Western Indian Ocean, and the Northwest Pacific, between 69 and 77 percent of stocks are depleted. Numerous studies underscore an alarming decline in fish stocks, although the percentage of stocks exploited at or beyond their maximum sustainable levels varies greatly by region. In major fishing areas including the Western Central Atlantic, the Eastern Central Atlantic, the Northwest Atlantic, the Western Indian Ocean, and the Northwest Pacific, between 69 and 77 percent of stocks are depleted. 79 79 Moreover, there are growing hypoxic bodies like the Gulf of Mexico, water literally without oxygen, in which many bottom-dwellers such as snails, worms, starfish, and crabs die because they are unable to escape, while more mobile creatures like fish and shrimp are forced to flee the area. Moreover, there are growing hypoxic bodies like the Gulf of Mexico, water literally without oxygen, in which many bottom-dwellers such as snails, worms, starfish, and crabs die because they are unable to escape, while more mobile creatures like fish and shrimp are forced to flee the area.80 (See (See Figure 7.3 Figure 7.3.) Additionally, there is growing concern about destructive fishing practices such as trawling and blast fishing. Trawling cuts the living material from the sea bottom, reduces the future productivity of the ocean and stirs up huge sediment plumes. According to one author, "out-of-control demand for once premium foods has translated into grotesque and unsustainable forms of production. A taste for 'popcorn shrimp' in the strip malls of America translates into the cutting down of tropical mangrove forests in Ecuador and the destruction of wild shrimp stocks in Southeast Asia."81 The Macro Quantum interlinkage of prosperity and increased consumption with environmental degradation couldn't be clearer. The Macro Quantum interlinkage of prosperity and increased consumption with environmental degradation couldn't be clearer.

Figure 7.3 Global Trends in Marine Stocks since 1974 Global Trends in Marine Stocks since 1974 SOURCE: FAO.

"Stock depletion has implications for food security and economic development, reduces social welfare in countries around the world, and undermines the well-being of underwater ecosystems," says Ichiro Nomura of the FAO.82 To ensure fishing occurs sustainably, fishing practices need to be monitored, and destructive techniques should be banned. Fish, like any other resource, are not free goods; the price paid for sushi should reflect just how scarce many piscine species are becoming. To ensure fishing occurs sustainably, fishing practices need to be monitored, and destructive techniques should be banned. Fish, like any other resource, are not free goods; the price paid for sushi should reflect just how scarce many piscine species are becoming.

Moreover, much of fishing occurs on the high seas (that is, the area outside the exclusive economic zone of any given country). The truly international status of these waters makes fish catches an issue particularly suited to multilateral management. Allocation of fishing rights is a slippery issue, however. According to the FAO, there has been a shift away from the cla.s.sical management approach of simply limiting catches of fish to rights-based approaches that align commercial incentives and preservation objectives.83 However, "negative perceptions about rights-based approaches persist, in part because they require resolving the fundamental fisheries management dilemma of who gets which fish." However, "negative perceptions about rights-based approaches persist, in part because they require resolving the fundamental fisheries management dilemma of who gets which fish."84 International oversight and agreement on an allocation method must be set to prevent the global fishing industry from collapsing. International oversight and agreement on an allocation method must be set to prevent the global fishing industry from collapsing.

Air The last of our environmental trinity-land, sea (and rivers, lakes, and streams), and air-has received the most attention recently. Air pollution, in the form of greenhouse gas emissions (such as carbon dioxide, nitrogen oxide, methane, and chloroflorocarbons), causes global warming, the ramifications of which scientists speculate will touch every aspect of our lives eventually. From coastal flooding to changing weather patterns, a warmer future could threaten our lifestyles dramatically. But air pollution-the gases, aerosols (solids or liquids suspended in gas), and particulates that are largely a product of our cars, fossil fuels, and factories-already impacts us through higher rates of respiratory diseases and birth defects, lower economic productivity, soil leeching, and lower fish catches.

Worldwide air pollution is responsible for large numbers of deaths and cases of respiratory disease. The WHO states that 2.4 million people die each year from causes directly attributable to air pollution, and research suggests women exposed to high levels of ozone and carbon monoxide may be up to three times as likely to give birth to a baby with heart defects.85 Air pollution also detracts from economic efficiency. Acid rain, a product of certain sulfur or nitrogen compounds reacting in the atmosphere with water vapor, has been shown to have adverse impacts on forests, freshwater and soil, killing off insects and fish, as well as causing damage to buildings. Smog-ground-level ozone-is a combination of sunlight and greenhouse gas emissions (hydrocarbons and nitrogen oxide).86 Smog can reduce visibility and add to driving hazards and delays in ground and air traffic. Logistics costs per unit of GDP are more than three times higher in China (which is significantly smoggier) than in the United States. Smog can reduce visibility and add to driving hazards and delays in ground and air traffic. Logistics costs per unit of GDP are more than three times higher in China (which is significantly smoggier) than in the United States.87 Now more than ever, a global solution for air pollution needs to be implemented. The dirtiest cities in terms of particulate matter (shown in Table 7.6 Table 7.6) aside from Cairo, Egypt, are all Asian, but that does not mean their pollution stays close to home. Consider that in April 2007, a dense cloud of pollutants over northern China sailed to nearby Seoul. The dark cloud continued its trajectory over the Korean peninsula and across the Pacific. The cloud was visible to a U.S. satellite as it crossed the U.S. West Coast. Unfortunately, this was not a one-time incident. Along with toys, clothes, and electronics, air pollution has become a major Asian export to the United States. "Occasional, large-scale Asian dust storms had led us to believe that this pollution traveled east in infrequent, discrete events," said University of California at Davis atmospheric scientist Steve Cliff. "As it turns out, Asian pollution, particularly in the Sierra-Cascade range and elsewhere in the American West, is the rule, not the exception."88 Table 7.6 The World's Most Polluted Cities by Particulate Matter The World's Most Polluted Cities by Particulate Matter SOURCE:World Bank.

This kind of visible pollution-ambient particulate matter-in addition to greenhouse gases, plays an important role in climate, exerting both warming and cooling effects, and affecting precipitation and cloud cover. Scarce data from emerging countries make tracking emission sources, concentrations, transport patterns, and impacts difficult,89 but it is estimated that the increase in global-warming gases from China's coal use will probably exceed that for all industrialized countries combined over the next 25 years, surpa.s.sing by five times the reduction in such emissions that the Kyoto Protocol seeks. India is right behind China in stepping up its construction of coal-fired power plants. but it is estimated that the increase in global-warming gases from China's coal use will probably exceed that for all industrialized countries combined over the next 25 years, surpa.s.sing by five times the reduction in such emissions that the Kyoto Protocol seeks. India is right behind China in stepping up its construction of coal-fired power plants.90 Studies to date show that the growing amounts of microscopic pollutant particles coming from factories, vehicles, and power plants in China and India have changed U.S. Pacific coast weather patterns.91 High-alt.i.tude storm clouds over the northern Pacific have increased up to 50 percent over the past 20 years. Potential consequences of this change in weather patterns could be warmer air and more soot farther north into the Canadian Arctic, leading to accelerated melting of polar ice packs. High-alt.i.tude storm clouds over the northern Pacific have increased up to 50 percent over the past 20 years. Potential consequences of this change in weather patterns could be warmer air and more soot farther north into the Canadian Arctic, leading to accelerated melting of polar ice packs.92 But also, as But also, as Table 7.7 Table 7.7 shows, the United States and other G7 countries remain significant polluters. shows, the United States and other G7 countries remain significant polluters.

Table 7.7 Total Carbon Dioxide Emissions Total Carbon Dioxide Emissions SOURCE: Center for Global Development.

This suggests we need a truly international policy to deal with air pollution. The much-touted Kyoto Protocol was meant to curb national CO2 emissions relative to each nation's level in 1990. But the Kyoto Protocol has been highly ineffective as far as treaties go. emissions relative to each nation's level in 1990. But the Kyoto Protocol has been highly ineffective as far as treaties go.93 Kyoto's first problem is that the United States, the world's largest polluter, refuses to join. Secondly, developing countries, which are contributing a growing proportion of global emissions, have been left without firm commitments to do anything. Kyoto's first problem is that the United States, the world's largest polluter, refuses to join. Secondly, developing countries, which are contributing a growing proportion of global emissions, have been left without firm commitments to do anything.

After coming under considerable scrutiny for not ratifying Kyoto, President Bush posited his first specific goal on the nation's emissions in April 2008, calling for the United States to halt the growth in greenhouse gases by 2025. Big business has been surprisingly responsive. There has been a push from industry to create user-friendly simplified federal regulation to avoid a complicated local web of conflicting measures. "We're in the worst of all worlds right now; we've got a dozen states that are forming their own regulations," says Jeffrey Immelt, CEO of General Electric.94 This same logic should be carried to the international level, unifying emissions policies between countries. To discuss appropriate multilateral solutions that doesn't repeat Kyoto's mistakes and simplify regulations to facilitate clean business activity, let's first examine two primary air pollution sources: power generation and transportation. This same logic should be carried to the international level, unifying emissions policies between countries. To discuss appropriate multilateral solutions that doesn't repeat Kyoto's mistakes and simplify regulations to facilitate clean business activity, let's first examine two primary air pollution sources: power generation and transportation.

Coal: Fueling the Fire Coal is perhaps the dirtiest means of generating power. From the mining and transporting to the burning of coal, each step spews carbon dioxide, as well as mercury, sulfur dioxide, nitrogen oxides, soot, and particulate matter pollution as we described earlier. There are two methods of coal mining: underground and surface, both of which come with environmental price tags. The method used simply depends on where coal deposits are buried. Underground mining can have significant health impacts on its employees, particularly in developing countries, where health and safety policies are often subpar. In 2004, for example, China reported more than 6,000 coal mining related deaths and 10,000 new cases of black lung.95 Surface coal mining, on the other hand, requires large tracts of land to be disturbed, raising a number of environmental challenges, including soil erosion, dust, noise, and water pollution, and impacts on local biodiversity. Once extracted, coal is generally transported by truck, train, or barge. These methods of coal transportation are not only expensive-in some cases accounting for 70 percent of the delivered cost of coal-they also burn fossil fuels in the process. Surface coal mining, on the other hand, requires large tracts of land to be disturbed, raising a number of environmental challenges, including soil erosion, dust, noise, and water pollution, and impacts on local biodiversity. Once extracted, coal is generally transported by truck, train, or barge. These methods of coal transportation are not only expensive-in some cases accounting for 70 percent of the delivered cost of coal-they also burn fossil fuels in the process.96 Alternatively, coal can be mixed with water, and this slurry can be transported via pipeline, cutting down on some of these transportation impacts, but not all. Alternatively, coal can be mixed with water, and this slurry can be transported via pipeline, cutting down on some of these transportation impacts, but not all.

When coal eventually reaches a power plant, even with new "clean coal" technologies such as coal capture and sequester (CCS) programs and a process called integrated gasification combined cycle (IGCC), its environmental footprint cannot be fully negated. CCS recovers and buries CO2 emissions, but the process itself is actually extremely energy intensive, which could potentially double the operating cost of power plants. For a typical new CCS power plant to become financially viable, coal will need to be priced at $30 per ton (as opposed to the current price of $9 per ton). emissions, but the process itself is actually extremely energy intensive, which could potentially double the operating cost of power plants. For a typical new CCS power plant to become financially viable, coal will need to be priced at $30 per ton (as opposed to the current price of $9 per ton).97 IGCC, on the other hand, turns coal into gas, cutting down on sulfur dioxide and nitrogen oxide emissions, but it is also currently prohibitively expensive. Trying to clean up coal's act is proving to be a difficult and expensive task. Shifting focus to developing other less environmentally degrading forms of power might make more sense. IGCC, on the other hand, turns coal into gas, cutting down on sulfur dioxide and nitrogen oxide emissions, but it is also currently prohibitively expensive. Trying to clean up coal's act is proving to be a difficult and expensive task. Shifting focus to developing other less environmentally degrading forms of power might make more sense.

In Chapter 3, we saw how building alternative energy technology cl.u.s.ters could help the U.S. economy break out of its slump and maintain its innovative edge. As described in our solar grand plan, existing photovoltaic plants have demonstrated that concentrated solar power is practical, but costs must decrease to make it a viable energy source. By improving technology and capturing economies of scale, solar power could become viable within a decade or so, replacing increasingly damaging and expensive fossil fuels. Hydroelectric, geothermal, and wind power also should be supported as alternatives for fossil fuels.

Pollution on the Move Pollution sources that move, such as trucks, cars, bulldozers, and trains, are known as "mobile sources"; 98 98 they rely on combustion engines that produce carbon monoxide and dioxide, as well as nitrogen oxide, hydrocarbons, and particulate matter. Because these mobile sources are such an essential part of commerce-including the trucks and trains that ship goods-as well as everyday life, an eco-friendly transportation policy must address consumer lifestyles, vehicle and engine design, and the fuels used by vehicles. they rely on combustion engines that produce carbon monoxide and dioxide, as well as nitrogen oxide, hydrocarbons, and particulate matter. Because these mobile sources are such an essential part of commerce-including the trucks and trains that ship goods-as well as everyday life, an eco-friendly transportation policy must address consumer lifestyles, vehicle and engine design, and the fuels used by vehicles.

Stricter regulations for vehicle manufacturers and subsidizing alternatives to combustion engines are two avenues that could be explored. From the electric Tesla electric roadster to the zero-emissions hydrogen powered Honda FCX Clarity, a number of high profile subst.i.tutes have emerged recently, proving that a cleaner car is possible. These vehicles are currently out of reach for some consumers, but with continued advancements, prices will likely fall. For all vehicles, be they traditional, hybrid, or electric, providing improved information on fuel economy will also help consumers make better choices and shy away from gas-guzzlers.

In terms of gasoline, the price should be dramatically higher in the United States (as it is in most of Europe) to reflect gas' environmental damage. However, it is difficult to accurately price the potential costs of global warming, because projections are highly varied and spread over long time periods.99 Yet, a carbon tax could at least partially offset the costs of technological research and environmental remediation. A taxation scheme similar to that applied to cigarettes will help drivers to understand the full cost of their transportation choice. Of course, this option is likely to be politically unpopular, given the U.S. public's recent concern over rising fuel prices. In a June 2008 Pew survey, 82 percent of Americans said they were watching gas and oil price news closely (up from 69 percent in August 2007). Yet, a carbon tax could at least partially offset the costs of technological research and environmental remediation. A taxation scheme similar to that applied to cigarettes will help drivers to understand the full cost of their transportation choice. Of course, this option is likely to be politically unpopular, given the U.S. public's recent concern over rising fuel prices. In a June 2008 Pew survey, 82 percent of Americans said they were watching gas and oil price news closely (up from 69 percent in August 2007).100 On the other hand, a carbon tax on top of $3+ per gallon gas may not be as crazy as it sounds. Europeans have coped with $2 to $4 per gallon gas taxes for decades. On the other hand, a carbon tax on top of $3+ per gallon gas may not be as crazy as it sounds. Europeans have coped with $2 to $4 per gallon gas taxes for decades.

In terms of lifestyle, providing people better public transportation options is key. Appropriate solutions depend largely on local circ.u.mstances (what is appropriate in New York may not work in Nebraska). For dense urban areas, bus, light rail, and subway systems could be revamped. Better city planning can prevent the inefficient suburban sprawl that is happening today (see box at the of this chapter). While motor vehicles are likely to continue to play a substantial role in the U.S. economy as well as a growing role in China and India, making cars more environmentally friendly and providing alternatives to combat air pollution should remain an important goal.

Cultivating Environmental Consciousness The lack of formal international structures is a significant impediment to better management of water, land, and resources. Several supranational organizations, from the World Health Organization to the World Trade Organization, play a part in environmental oversight and regulation, but there is no overarching coordination. Without a managing body, international environmental policy has been shaped haphazardly by treaties and ad hoc groups. While some treaties are useful, they are static doc.u.ments unable to foresee changes in consumption and production patterns. This has not been aided by the plight of the well-known Kyoto Protocol. While it would be an unfair generalization to say all treaties encounter as many stumbling blocks as Kyoto, it is safe to say they cannot monitor pollution levels nor can they enforce themselves.This is why an international monitoring body is needed.

Of course, credit should be given to NGOs for attempting to fill some gaps.Where states have failed to venture (or have tried unsuccessfully), pioneering nonstate actors have stepped in to lead preservation efforts. Private nonprofit organizations have done a fair job monitoring, raising awareness, and funding localized efforts. NGOs like the World Wide Fund for Nature, Greenpeace, and the Sierra Club are well known for their activism. But NGOs are inherently limited in their audience and authority. Expanding upon NGO efforts will require greater state support to enforce environment-friendly regulations and incentivize private sector partic.i.p.ation. Not to mention, in many countries government is the largest single purchaser of goods and services and can set procurement policies that support sustainability.

For these reasons, a multifaceted platform, reflecting the fact that environmental challenges are the product of many different sectors, should be designed to tackle these issues. Given the expanding role of nonstate actors, the G20 could form a working group to recommend a range of policies to better manage not only greenhouse gas emissions but also promote better conservation policies regarding water and land use, mining, fishing, and livestock rearing, among others. These may be easier to fix first.

Any platform that claims to address environmental challenges must incorporate the private sector. From commercial farms and fisheries to factories, environmental degradation is typically linked to private players. The government must shift subsidies away from heavily polluting industries toward private research for cleaner forms of energy. Private sector finance can also support capacity building and introduce international best practices. World Watch Inst.i.tute's State of the World 2008 State of the World 2008 report estimates that responses to climate change and other environmental problems are affecting more than $100 billion in annual capital flows. report estimates that responses to climate change and other environmental problems are affecting more than $100 billion in annual capital flows.101 Twenty-seven major corporations are actively urging the U.S. Congress to pa.s.s legislation regulating greenhouse gas emissions, and 575 environmental and energy hedge funds are now in existence. Twenty-seven major corporations are actively urging the U.S. Congress to pa.s.s legislation regulating greenhouse gas emissions, and 575 environmental and energy hedge funds are now in existence.102 What's more, in 2007, Goldman Sachs released a study showing that companies with strong environmental, social, and governance policies outperformed the stock market in general by 25 percent. What's more, in 2007, Goldman Sachs released a study showing that companies with strong environmental, social, and governance policies outperformed the stock market in general by 25 percent.103 Business is starting to respond to the changing environment-but this trend must expand exponentially to truly curb our environmental challenges. Business is starting to respond to the changing environment-but this trend must expand exponentially to truly curb our environmental challenges.

More important, consumers must be brought into the fold.This can be accomplished by pricing goods to reflect their true costs-including the costs of disposal and negative externalities a product may cause.This applies equally to water, carbon emissions, forest products, and meat and fish, among other goods.The environmental oversight body we propose would work like an international Environmental Protection Agency (EPA), using market-based inst.i.tutions to promote greater energy and resource efficiency, minimize waste generation, encourage environmentally sound purchasing decisions, and shift toward pricing systems that incorporate hidden environmental costs.The ultimate aim is to shift the calculus behind production and consumption. Some tools it would use include information sharing, penalizing countries that subsidize heavily polluting industries, liberalizing water and energy markets, and pollution tax schemes.

Information Sharing One seminal role for our proposed environmental working body would be to manage information. While the OECD and World Bank compile basic information on fresh water use, there is currently no true marine monitoring system that actually looks at what is going on under the ocean. Monitoring fish stocks and catches, recording algae plumes in detail, and observing use of nitrogen-rich fertilizers is the first step to a more integrated ocean policy.

In the arena of river management, localized efforts will also be required to coordinate efforts in managing individual water basins. Between states, the development of shared data, water management inst.i.tutions, and legal frameworks has helped to reduce the risk of water-related conflict. Since 1948, approximately 295 international water agreements have been negotiated and signed.104 According to the OECD, relations among riparian states are typically more cooperative than in basins without treaties or water management mechanisms. The Mekong River Commission, for example, has been largely successful promoting equitable and sustainable water use and fostering good relations between Thailand, Vietnam, Laos, Cambodia, and China. Similar shared information could be gathered on fish catches and even carbon dioxide emissions. According to the OECD, relations among riparian states are typically more cooperative than in basins without treaties or water management mechanisms. The Mekong River Commission, for example, has been largely successful promoting equitable and sustainable water use and fostering good relations between Thailand, Vietnam, Laos, Cambodia, and China. Similar shared information could be gathered on fish catches and even carbon dioxide emissions.

A second part of monitoring is measuring, that is, providing a yardstick by which to judge our progress. When factories spew noxious and potentially carcinogenic fumes, it becomes clear that promoting human well-being is sometimes not the same as prompting GDP growth. According to World Watch's State of the Earth 2008 State of the Earth 2008 report, green accounting programs are in place in at least 50 countries and at least 20 other countries are planning to initiate such programs soon. report, green accounting programs are in place in at least 50 countries and at least 20 other countries are planning to initiate such programs soon.

Realigning Prices to Reflect Actual Costs Subsidizing heavily polluting industries is simply unfair; but every day, consumers and industries receive hidden subsidies when they don't pay the full cost of the externalities their choices create. The WTO could actually work as an environmental policy manager to get rid of these secret subsidies. The World Trade Organization has set a precedent in the past of lessening inequitable burdens of pollution. In 2003, the United States prohibited the importation of Thai shrimp that had been caught in nets that caused unnecessary deaths of large numbers of endangered turtles. In this case, the WTO sustained the principle that global environmental concerns trump narrow commercial interests. The WTO's logic held that supporting low-cost unsound environmental practices can be viewed as a sort of subsidy; others must pay for the environmental damage caused by these poor practices. The principle can be extended to justify restricting importation of goods produced by technologies that unnecessarily pollute our atmosphere and river systems. Countries could use the WTO framework to prohibit or tax the importatio