MANAGEMENT FOR SMALL PLANET

Management for a Small Planet



Management for a Small Planet

Introduction

Most of the efforts of the world's countries are aimed to make our planet, a better and safer place to live in. Most of the states are continually employing strategies and campaigns that can create economic sustainability while being responsive to the changing environmental needs. The world economy has grown dramatically over the past 50 years, despite several crises. The average living standards have improved in the world. Our means of production and consumption have been radically transformed, and more people than ever can now meet their basic needs primary. But for this progress continues, it will face a number of challenges.

1. Evaluation of Markets Incentive-based Approach to Create Economic Sustainability

The integration of ecology and economics has begun to provide new insights about the linkages between ecological and economic systems, and to suggest some broad policies concerning how to achieve sustainability.

A. Natural Capital Depletion (NCD) Tax

Economic support for greening the economy includes certain insurance, taxes, loans, subsidies, tariffs, duties. Natural Capital depletion (NCD) Tax aims to compensate for the damage caused during the processing of a product and redirecting money flows in a rapid way. This removes any potential bias against ecologically responsible actions, caused by the imposition of higher taxes on goods and services (Edward, Jepson, 2004).

B. Precautionary Polluter Pays Principle

The Polluter Pays Principle (PPP) is an environmental policy principle which requires that the costs of pollution be borne by those who cause it. Principle 15 of the report of the Rio Conference, June 1992 states that:

"To protect the environment, the precautionary approach shall be widely applied by States according to their abilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty should not be an excuse for postponing the adoption of effective measures to prevent environmental degradation.” (Prugh, Costanza, 1999)

The principle is established mainly to preserve the natural resources in the long run and applies in cases of scientific uncertainty about the consequences of environmental risks.

C. Marketable Permits

Historically, most environmental management was Command-and-Control (CAC) based. Dales (1968), Montgomery, and others proposed marketable permits, which may also be called as “Tradable Property Rights”, or “tradable permits”. These permits set standards, but then allow entities to buy emission reductions from others to satisfy their requirements. These permits are advantageous in the sense that they reduce the uncertainty associated with the applications and the costs of adjustments in meeting the standard (Prugh, Costanza, 1999).

2. Life Cycle Analysis and Marketing

Industrial Ecological Clustering

Critically polluted industrial areas/clusters are not only environmental challenges but they are also public health challenges. Cluster, it can still be called clusters - a group of neighboring companies and related social infrastructure and institutions operating in a particular area and complementary to each other. We already have examples of such areas - where the focus engineering, pharmaceutical, chemical, manufacturing, medical devices. Figuratively speaking, three hundred years ago, we were first in the Urals metallurgical cluster created ...