The research finds three central failings are to blame. Firstly, we currently lack the tools to adequately measure and understand the value of nature, meaning it is largely invisible to policymakers. Secondly, many economic models assume that environmental value can be easily and indefinitely replaced by man-made value; for example, the loss of natural capital from logging a forest is off-set by the creation of valuable jobs and timber – ignoring the question of what happens when the last tree is cut down. Finally, we don’t have the laws and institutions required to protect our critical stocks of natural capital from unsustainable exploitation. Thankfully, the research finds encouraging signs that our economy can be rapidly rewired to protect the planet. Governments and businesses must start measuring their stocks of natural capital in comprehensive natural wealth accounts, and ensure that those assets are protected and improved. Better data is needed on the value of the natural wealth that underpins economic activity, so that value can be accounted for by treasuries and financial centers. And critical natural assets – without which society cannot survive – must be given special status so that they cannot be squandered.
This research is an urgent wake-up call to governments and businesses around the world: our economies are flying blind, and new models and methodologies are urgently required. “The opportunity to properly value nature is not just a task for economists but for all of us,” Oliver Greenfield added. “The societies and economies that understand their dependency on nature are healthier and more connected, with a brighter future.”
