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A New Economy Will Help Save Rivers and Fisheries

by Brent Blackwelder

BlackwelderGlobalization and cheater economics have been destroying the world’s great rivers and their fisheries. Most people know about the devastation of rivers from water pollution, but not as many are aware of the significant impacts of big dams, river engineering, and real estate development in and on top of rivers. These activities can seriously damage fisheries and impair the natural functions of riverine ecosystems. A true-cost, steady state economy would, for the most part, avoid the continuing tragic dismantlement of rivers and fisheries.

The following three activities are causing major harm to rivers and fisheries, but would not occur in a true-cost, steady state economy.

Coal Ash Cesspools

The mining and burning of coal have come under enormous scrutiny because of the air pollution, water pollution, and greenhouse gas emissions they cause. There is another major but relatively unknown water pollution threat from coal burning, in addition to the smoke plume at the power plant–coal fly ash pits. After coal is burned at a power plant to generate electricity, the ash residue (which can contain serious toxins such as mercury, lead, arsenic, cadmium, etc.) is dumped into unlined ponds or pits near the power plant. These toxic cesspools, as they should be called, cause contamination of surface water, well water, and adjacent lands.

In February of 2014, one of Duke Energy’s dozens of coal ash cesspools malfunctioned, sending toxic sludge 70 miles down the Dan River in North Carolina and into Virginia. Six years earlier (December, 2008) a coal ash cesspool operated by the Tennessee Valley Authority broke, sending even greater quantities of toxic water and sludge into a tributary of the Tennessee River.

Independent testing of coal ash cesspools reveals a Pandora’s Box of toxins, findings that generally contradict assertions by utilities that things are okay. This growing issue amounts to a deadly in-your-face utility circus, flouting the law and flaunting the political power of utilities over state legislatures.

Utilities are doing what would never be allowed in a true-cost economy: they are externalizing the costs of dealing with fly ash from burning coal. Were they to include the health and pollution damages, the costs of coal would skyrocket and its use would be rapidly phased out.

Giant Dams

The economic evidence over the last 70 years against large dams has been assembled by economists at Oxford University (UK). They found, on average, large dam projects in developing countries exceed their construction cost budget by 90%, and often take over 10 years to complete.

Tonle Sap Lake Fish - Shankar S

Fish from Cambodia’s Tonle Sap Lake, one of the most fertile inland fisheries in the world, are facing threats from dams in the nearby Mekong River. Photo Credit: Shankar S

In addition, most mega-hydrodams omit genuine cost-accounting for their sometimes enormous adverse environmental and social impacts. For example, the public tends to think of hydroelectric power as a clean source of energy, not realizing that dams may be responsible for over 20% of the human-caused methane emissions. (Methane is a 20-30 times more potent greenhouse gas than carbon dioxide.) In Asia, the Mekong River contains the world’s largest inland fishery and provides livelihood for an estimated 60 million people. Large dams are planned across the mainstem of the river that would destroy the fish migrations of more than 200 species. One proponent of these dams said, “don’t worry, the people can just buy their fish from a fish farm once the river fish disappear.”

Again, a true-cost economy does not condone the blatant failure to include all the costs. See my February 2015 blog “Crossroads on Global Infrastructure” for more details on large infrastructure projects.

River Engineering and Response to Weather Disasters

In the aftermath of Superstorm Sandy, New York and New Jersey received about $60 billion in relief and assistance. Instead of avoiding more development in top hazard zones, a burst of building permit applications has been made for more activities in and on top of the Hudson River, all in a number one hazard zone. A lot of this real estate development on piers would harm crucial habitat for over 100 fish, plant, and animal species. The proposals include such reckless propositions as an amphitheater and trees on an artificial “island” in the river. This is not free-enterprise development, but subsidized activity that eventually will necessitate a taxpayer “emergency relief bill” following the next hurricane or superstorm. We will never reach a sustainable economy if we have to keep spending hundreds of billions of dollars globally, bailing out new real estate development where it never should have been.

Real estate developments in and on top of rivers, armor-plating shorelines to enable more construction right on the coast, proliferating coal ash cesspools, and building mega-dams all have something in common. They can damage fishery habitats, disrupt fish migrations, and impair the healthy functioning of rivers in the US and worldwide. A true-cost economy recognizes that healthy rivers and flourishing fisheries are vital economic assets for cities and towns, and has principles that prevent their evisceration. The current globalized economy does not.

The Hidden Costs of Cheater Economics on Human Health & the Future of Life on Earth

by Brent Blackwelder

BlackwelderIn a true cost steady state economy, the real costs of goods and services would not be disguised, hidden, or kept off the accounting ledger. The former head of Friends of the Earth England, Tony Juniper, makes a significant contribution to the discussion of a true cost economy in his new book What Has Nature Ever Done For US? How Money Really Does Grow on Trees.

Cheater economics enables polluting products to be sold cheaper than many clean products. Cheater economics includes subsidies for fossil fuels, pesticides, and toxic chemicals. Cheater economics tolerates pollution externalities, as economists have noted. For example, many damages caused by air pollution from coal-fired power plants are not incorporated into the price of coal but simply borne by the victims. The act of mountain top mining eliminates forests and streams while air pollution from burning coal results in loss of crops, damage to buildings, health problems, and mercury contamination of fisheries, etc.

Here is a sample of the astonishing set of ecological costs stemming from economic activities that damage or rearrange ecosystems that are presented in What Has Nature Ever Done For US?

Vultures in India

Photo Credit:  Nagarjun Kandukuru

Perching vulture in India. Photo Credit: Nagarjun Kandukuru

India has almost lost its total population of 40 million vultures as a result of anti-inflammatory drugs injected into cattle and water buffalo. The vultures consumed the carcasses of these and other dead creatures and accumulated a fatal dosage. Now 12 million tonnes of animal flesh that vultures consumed annually is left rotting, fed upon by growing packs of dogs that have caused a massive outbreak of rabies among the human population. The annual medical costs exceed $30 billion as a result of the demise of the vulture population, which had previously provided free of charge essential garbage/carrion collection services.

Pollinators of Human Food Crops

About two thirds of the world’s food crops require animal pollination and one trillion dollars of the $3 trillion annual sales of agricultural products are dependent on animal pollinators such as honey bees and bumblebees. Certain pesticides are killing off these crucial pollinators. In the 1980s, extensive use of pesticides in part of Sichuan, China, eliminated the bee pollinators. Today in this region, about 40,000 people now have to pollinate apple and pear trees by hand.

The United Nations Food & Agriculture Organization (FAO) reports that in 146 countries, 90% of the food supply is provided by 100 crops. What is significant is that 71 of these 100 crops are pollinated primarily by wild bees. These crops include squashes, cherries, plums, cucumbers, strawberries, and pears.

Destruction of Ocean Fisheries via Subsidies

Ocean fisheries contribute $274 billion for global GDP but various countries provide $16 billion in subsidizing fishery harvesting practices that are highly damaging to fish stocks: i.e., the equivalent of killing the goose that laid the golden egg.

Photo Credit: Jim Winstead

Mangrove in Thailand. Photo Credit: Jim Winstead

Mangrove Forest Loss & Coastal Flooding

One square kilometer of mangrove forest is worth between $200,000 and $900,000 annually. Destruction of coastal mangrove forests, as occurs with Asian shrimp farms, eliminates the storm protection barrier that is increasingly important in the face of sea level rise.

High Health Care Costs as Result of Destroying Natural Areas

To deal with the poor health of people in the polluted Gateshead area in Northeast England, a group of British public agencies in 2004 initiated a program of walks in a 360 hectare mixed forest zone. Tony Juniper reports that these walks were very effective in improving patients’ health and were far superior to the alternative of exercise in a gymnasium.

A growing body of evidence points to the health benefits from interactions with nature. Dr. William Bird, a British doctor, ran a diabetic clinic in the 1990s in Oxfordshire where he initiated a very successful program of health walks in natural areas. But the sad fact is that natural areas are declining in many urban areas. In Sheffield, England, the “roaming” range for children has declined over 5 generations from six miles when the great-grandparents were children to about 300 yards today for children. The health costs of destroying natural areas globally is simply a pollution externality for developers and extractors and is shoved off on the public.

Pharmaceuticals & the Loss of Tropical Rainforests

Experts estimate that between a quarter and a half of the $640 billion global pharmaceutical market is based on natural genetic diversity. Tropical rainforests contain a significant portion of the genetic diversity on earth, but despite the grave concerns about deforestation, an area the size of Germany or Montana was lost between 2000 and 2013.

To establish a true cost economy, we must get the ecological price right on products and services. The examples presented in Juniper’s book illustrate the extraordinarily large benefits provided by nature but neglected in today’s economic accounting. These compelling illustrations can be of great benefit in pushing toward a paradigm shift in current mainstream economic thinking. They are straightforward matter-of-fact descriptions of externalities that are undermining the life-support ecosystems of the Earth.

The Securities and Exchange Commission (SEC) should be requiring companies to disclose their pollution externalities annually so as to alert investors and the public to the true cost of their products. However, not only will a steady state economy depend on accounting for these costs and putting an end to cheater economics, but will also depend on changing our macroeconomic policy goal of continuous growth. Only then can we begin to stop the destruction of our planet and ensure our health and the environment are protected for generations to come.