Module 5.1

sustainable

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

economics

the social science that deals with how we allocate scarce resources

ecosystem services

Environmental resources like timber and water and ecological processes like water purification and pollination are essential and economically valuable

ecological footprint

the land needed to provide its resources and assimilate its waste (typically expressed as hectares [ha] or acres [ac] per person or population).

natural capital

the natural resources we consume, like oxygen, trees, and fish, as well as the natural systems—forests, wetlands, and oceans—that produce these resources

natural interest

what is produced from this capital, over time—more trees and oxygen, for example—much like the interest you earn with a bank account.

IPAT model

estimates the size of a population's ecological footprint, or impact (I), based on three factors: population (P), affluence (A), and technology (T).

Internal costs

Wages, fees, insurance, building maintenance, and other expenses

external costs

ecosystem services that might be important to the business, such as nutrient cycles that support tree growth or the water cycle that provides water for the trees. Because these services are supplied by nature "free of charge" and are not part of the cost of doing business

triple bottom line

An assessment of the cost of a good or service that includes economic, environmental, and social costs

true cost

the sum of both external and internal costs of a good or service

environmental economics

a discipline that considers the long-term impact of our choices on human society and the environment

linear economic systems

raw materials come in, humans transform those materials into some kind of product, and then they discard the waste generated in the process.

cradle-to-cradle

considers the entire life cycle of the product, from the beginning (acquisition of raw materials) to the end of its useful life (disposal), and is responsible for the impact of its use at every stage of the process.

service economy

focuses on selling a service rather than a product

green business

doing business in a way that is good for people and the environment

ecolabeling

a labeling system that tells consumers which brands are made with processes that do not harm the environment

greenwashing

claiming environmental benefits for a product when they are minor or nonexistent.

Fair trade

a product to be certified as fair trade, workers must be paid a fair wage, work in reasonable conditions to produce the goods or services, and the production process must have a low ecological impact. In other words, they have been produced in an environmentally and socially responsible way.