

Sustainability and prosperity in the age of ecological scarcity
Feb 3, 2025
Edward B. Barbier, a distinguished professor and environmental economics expert, shares insights from his book, Scarcity and Frontiers. He discusses how historical responses to resource scarcity shape economic sustainability and innovation. Barbier highlights the importance of transitioning from fossil fuels to green technologies and the competitive landscape surrounding environmental markets. He also examines the complexities of divestment strategies, the political landscape of green technology, and the potential pitfalls of prioritizing economic growth over true sustainability.
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Industrial Revolution and Fossil Fuels
- The Industrial Revolution's two phases fueled the fossil fuel era, causing lasting productivity boosts and ecosystem alteration.
- Coal drove the first phase, while oil and gas drove the second, shaping global development and material use.
Underpricing Nature
- Economies undervalue nature due to structural underpricing and underinvestment across markets, policies, and businesses.
- This 'negative pricing' of nature, especially fossil fuels, hinders the green transition and exacerbates environmental damage.
The Green Race
- A "green race" is emerging, driven by investment opportunities in green sectors and the slowdown of fossil fuel-based economies.
- This competition focuses on green innovation and the development of environmental markets, potentially reshaping global economies.