economy

Has the corporate-responsibility movement lost sight of the big picture?

Just as people sailing full-tilt into an iceberg zone can get distracted rearranging deck chairs, those of us advocating corporate responsibility may be guilty of spending too much time fiddling with the nuances of the language that describes our work. We do this even as abrupt climate change, pandemics, and other mega-trends float, quiet but […]

Gas price rant

One of the many problems with policy discussions these days is that they tend to be narrow and literal-minded. Take the "problem" of high gas prices. Response? Tax oil companies! Cap prices! Investigate price gouging! Ease environmental restrictions on clean-burning gas!

Stupid. We should take a step back. Here are two relevant facts:

• It's good that gas prices are rising. We want people to buy more fuel-efficient cars and drive less. In the long-term, oil prices are headed up whether we like it or not.
• The hardest hit by high gas prices are the poor, who have the least disposable income and in many cases are stuck in living and work situations that simply don't allow them to drive less in the short-term.

Given that, here are a few policy responses, some local, some federal, just off the top of my head, that make a hell of a lot more sense than whinging about oil companies. In no particular order:

Are gas prices and gas consumption connected?

It may come as a bit of a surprise: Despite rising gas prices over the past few years, total consumption of highway fuels in the U.S. has actually increased rather than fallen. Some have seized on this phenomenon -- prices and consumption rising in tandem -- to suggest that changes in gas prices have no discernible effect on how much gas we actually use.

The idea that gas prices have no effect on consumption doesn't square with economic theory, to put it mildly. And this Excel spreadsheet (courtesy of Charles Komanoff and the ever-informative Todd Litman) sheds some light on what's really going on. Apparently, even as U.S. gas prices have risen, so have population and GDP. And GDP growth tends to push consumption levels up -- in fact, over the short term, gas consumption seems to be far more responsive to changes in GDP than to changes in prices.

Seriously, now — why aren’t organics getting affordable?

So you like whole-grain bread, pesticide-free plums, and low-fat meat? Better ask for a raise. A recent study by researchers at the University of California-Davis reported that U.S. shoppers who consistently choose healthy foods spend nearly 20 percent more on groceries. The study also said the higher price of these healthier choices can consume 35 […]

The environmental movement won’t thrive till it tackles economic development in low-income districts

Growing up in east Los Angeles as the son of Central American immigrants, the everyday challenges faced by the people in my community seemed far removed from the American dream: the lack of good housing and jobs, failing schools, scraping together money for groceries, and all-too-common police brutality. If you had asked us, we would […]

Can capitalism be harnessed to solve environmental problems, or is capitalism itself the problem?

When right-wing pundits and corporate flacks compare environmentalists to watermelons (green on the outside, red on the inside), they mean it as a slur. But when eco-socialists look at the wider environmental movement, they see a big green tomato that had better ripen up, and soon. Hybridizing the analyses of Karl Marx with those of […]

The real dimensions of $87 billion

Add enough zeros to the end of any number — say, 87 — and it quickly becomes an abstraction. I can imagine 87 years (my grandmother’s age), or 87 miles (about the distance from my home in Brooklyn to outer Long Island), or $87 (which wouldn’t go far out there in the hoity-toity Hamptons). But […]

Rewriting the book on economics

Joshua Farley, a researcher at the Gund Institute for Ecological Economics, didn’t get into economics to make money. In fact, he tells me, he almost quit the academy altogether to go back to carpentry — a far more lucrative career prospect. “When I graduated, there were virtually no jobs in ecological economics. I applied to […]

Ecological economist Robert Costanza puts a price tag on nature

The idea of slapping a dollar value on to an alpine meadow or the dappled green shade of a forest strikes a chill into the very bones of most environmentalists. Like love, nature is the kind of thing that money just can’t buy. Or is it? A small but growing chorus of ecological economists are […]