The%20Value%20Revolution%20in%20Economics

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The Value Revolution in Economics

• Wealth, Indicators Accounting

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Redefining Wealth

• Quantitative
• Money Material
• Accumulation
• Qualitative
• Well-being
• Regeneration

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Quantification Value

• What is measured gets done
• What gets counted is valued
• What is valued gets counted

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Indicators

• If it is to be achieved, the new economic
  system will result from our becoming better
  ecological accountants at the community level. If
  we must as a future necessity recycle essentially
  all materials and run on sunlight, then our
  future will depend on accounting as the most
  important and interesting discipline.
• Wes Jackson,
• Becoming Native to This Place

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Indicators Value

• Expression of potential for a knowledge-based
  economy
• Centrality of end-use requires more
  sophisticated monitoring of human need.
• also required by the centrality of creativity to
  qualitative economic development.
• Radical potential of eco-literacy
• Murray Fordist Waste Economy depended as much on
  deskilling of the consumer as deskilling of the
  worker.
• Deflating Financialization potential to replace
  money as key determinant of value
• decommodifying money money as pure information

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Indicators real wealth

• Qualitative Wealth is far more complex requires
  more quantification
• Qualitative Wealth is place-based or specific to
  circumstances
• Qualitative Wealth is needs-based, requiring
  examination of consumption.
• Accounting takes place on many levels in terms
  appropriate to that level

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A Dashboard for the Cockpit

• The Family of indicators
• Urban Metabolism or regional mass balance
• Green GDP (e.g. Genuine Progress IndicatorGPI )
• Ecological Footprint
• Carbon accounting / carbon footprint
• Life-cycle Assessment (products, processes,
  landscapes)
• Industry-based accounts food, building,
  forestry, etc.
• Local Development Standards
• 5 capitals personal, professional, spiritual,
  environmental and financial
• Firm sustainability accounting
• Sustainable Community Indicators
• Risk Assessment, EIA, etc.

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Indicators Trends in Regulation

• Raw material for certification systems
• Regulation as more civil society-based
• Markets as values-driven
• FSC wood / LEED building / etc.
• integrated evaluation / regulation / marketing
  systems

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Entrepreneurial Value Creation

• Local Food Plus
• valuation
• regulation
• marketing
• education

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The Evolution of Indicators

• Difficulties with many early indicator sets
• Wish-lists, divorced from solutions or
  relationships
• Either too detailed or too aggregated
  /oversimplified
• Next Generation of Indicators
• from librarians to plumbers

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Indicator Design

• organized around a purpose
• highlight important trade-offs
• Varieties those that
• cause an outcome (e.g. reduce air pollution)
• document the outcome (e.g. amount of smog)
• react to the outcome (air pollution legislation)

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Genuine Wealth Assessment Life-cycle
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Business-related Applications

• Internal accounts
• Natural Step, ISO 14000, Eco-footprint,
  Sustainability Reporting
• Government Regulation
• Alternative Industry Standards
• --LEED green bldg. FSC wood B Corporation
  
• Innovative Business Models
• -- B Corporation
• -- McDonough/Braungart Protocol
• --Local Food Plus

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Business Applications-II

• Builds external costs into firm decisions
• Essential to Triple Bottom Line
• SBLS can be translated into financial bottom
  line
• Crucial to Stakeholder relationships
• Made easier by network support
• --market transformation

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Business Applications-III

• Sustainability accounting Global Reporting
  Initiative
• Triple Bottom Line accounting
• Social accountability reports
• Outcome-based reporting mapping
• etc.

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Genuine Wealth Applications

• All 5 capitals financial, built, natural,
  social, human
• Balance sheet for each
• Full-cost sustainable income statement
• Progress indicators
• Genuine Progress Report

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LCA and Product life-cycles Environmental
Lock-in over a Products Development Cycle