INDUSTRIAL ECOLOGY IN NORTH AMERICA

ConsumptionIt Is Time for Economists and Scientiststo Talk

Betsy Taylor

In the final U.S. presidential debate of 2004,President George W. Bush and Senator John

Kerry each heralded increased American con-sumption as the recipe to jumpstart the U.S.economy and generate growth.1 Economists andelected officials across the political spectrum seemto agree on one thing: consumption is a goodthing. And yet the U.S. National Academy ofSciences, the British Royal Society, the UnitedNations Environmental Program, the U.S. Presi-dent’s Council on Sustainable Development, and

Although economists, elec-ted officials, and far toomany traditional environ-mentalists refuse to ex-amine the inexorable linksbetween consumption andecological problems, aneconomic and culturaltransformation in con-sumption and productionhas already begun.

notable leaders from almostevery sector have identified un-sustainable consumption andproduction as the root causes ofecological degradation. Agenda21, the 1992 Earth Summit’sfinal report, observes that “themajor cause of the continueddeterioration of the global en-vironment is the unsustain-able pattern of consumptionand production, particularly inindustrialized countries.” (UN1992, Chapter 4.3) Is a new an-alytic framework for a sustain-able economy emerging and,if so, what practical on-the-ground models are beginning to resolve the ap-parent contradictions between jobs and wealthcreation on the one hand and environmentalstewardship on the other?

Many economists will rush to point outthat consumer spending is not the same as the

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Volume 9, Number 1–2

consumption of material resources—that theseare indices of different things. Yet despite fewempirical studies to demonstrate the connec-tion, the flow of money in our global econ-omy is closely tied to the flow of materials.China is a good example of this, as economicgrowth surges to 9–13% annually. At the sametime, China’s demand for wood, concrete, alu-minum, paper, and fossil fuel has exploded,affecting prices for raw materials worldwide,but also quietly consuming forests, eliminating

habitat, and accelerating cli-mate change (Goodman 2004).Yet despite the overwhelm-ing data on ecological col-lapse, elected officials and theeconomists who align withthem may well be the last toconfront the need to redirectconsumption and production asa prerequisite for a safe andhealthy future.

Concerns about jobs arevalid, though many proponentsof unfettered commerce seemmore preoccupied with profitgeneration than with the needsof regular people seeking basic

material security. Regardless, something is amisswhen the number of people out of work and look-ing for work in 2003 reached 185.9 million, orabout 6.2 per cent of the total global labor force,the highest unemployment figure ever recordedby the International Labor Organization (ILO2004). Perhaps especially in this context, any talkof reducing consumption or redirecting produc-tion smacks of social engineering or European-style democratic socialism (a term still vilified

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by the American Right). Old frames for think-ing about the economy get activated and fearsarise over the role of government in a free mar-ket economy. Conversation about consumptionremains taboo in political circles, whereas sci-entists cry out about the havoc and permanentdevastation being caused by an economic systemgone haywire.

Although economists, elected officials, andfar too many traditional environmentalists refuseto examine the inexorable links between con-sumption and ecological problems, an economicand cultural transformation in consumption andproduction has already begun. No single institu-tion or leader has envisioned the complete newparadigm but the new thinking goes somethinglike this.

We need consumption but it must be redi-rected. Consumption fuels much of the globaleconomy but it is not an inevitable good noris it always rational, as neoclassical economistswill fervently argue. We must dramatically re-duce consumption of certain renewable and non-renewable resources to avoid further harm. Thinkof water, fossil fuel, wood, fish, and toxic in-dustrial and electronic products, among others.Nothing rational or good can come from the ex-traordinary depletion of the Ogallala aquifer un-der the Great Plains of the United States. Thewithdrawal of this groundwater has greatly sur-passed the aquifer’s rate of natural recharge. Thesame can be said about the depletion of fisheriesworldwide or the rapid felling of forests, with irre-versible loss of habitat and biodiversity. We musthave new rules of the road—policies, prices, indi-cators, and incentives to rein in our consumptionof things that are precious, not only to us, but tofuture generations.

Consumption of eco-efficient and less damag-ing products and commodities can be sustainedor, in some cases, increased. The fields of indus-trial ecology, eco-efficiency, sustainable agricul-ture, and environmental design fall into this partof the new paradigm. Bill McDonough, the vi-sionary architect and designer, is disingenuouswhen he suggests that consumption is not a prob-lem. Even if we can redesign carpets, fabrics,buildings, and other products, certain resourcesstill need protection from our voracious appetites.

This is not about fomenting guilt, but truth. Wecan consume more when products are nontoxicand designed for reuse, durability, and repair andif production greatly minimizes the use of rawmaterials, energy, and water.

The whole system of production and con-sumption must be less global and more local toavoid the many environmental and social costsso well documented with our current approachto trade and development. It is not a choice be-tween a WTO-dominated world or utopian farmcommunities but rather a blend of strong localeconomies sustained in part by incentives forlocal production and consumption, coupled withan integrated global system of trade that upholdshuman rights, environmental standards, and asocial safety net. This vision transcends blackand white definitions of what works and seeksto recapture the best of traditional economiesand communities while holding fast to our globalinterdependence.

What is actually happening on the groundin the United States? Most sustainability advo-cates have bypassed the U.S. federal governmentand worked for change within the marketplaceor in local governments and communities. Oneof the most promising developments in recentyears is the leveraging power of institutional con-sumers. State and local governments, for exam-ple, spend more than $400 billion every year.A growing number are redirecting these tax dol-lars to companies and products that supply prod-ucts that are healthy for people and the envi-ronment. Local government agencies have spenthundreds of millions of dollars on nontoxic in-dustrial cleaning products, recycled paper, hybridelectric vehicles, and environmentally friendlycomputers.

When big customers ask for safe and healthyproducts, suppliers usually pay attention. Whenshareholders and major investors ask for the same,this is a double whammy. Some $2.16 trillion dol-lars in the United States are invested with a com-mitment to social responsibility. These includefunds managed by major investing institutions—pension funds, mutual fund families, foundations,religious organizations, and community develop-ment financial institutions. Many are going be-yond simple screening of investments to active

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promotion of new technologies. The CaliforniaPublic Employees Pension Fund recently putmore than $200 million into green technologiesto reduce carbon emissions and generate new em-ployment in the state.

Green buildings are sprouting up from SidwellFriends School in Washington, DC to straw balehousing at Habitat for Humanity. With help fromthe U.S. Green Building Council, architects andcontractors now have specific criteria for certi-fying buildings as environmentally friendly. Inthe process, jobs are being generated as buildingowners commission solar cells, new storm watermanagement systems, and water-efficient land-scaping. Consumption of raw materials is goingdown as contractors receive “points” for reusingold materials.

Communities are creating new systems tolimit consumption and improve quality of life.Some 250 North American cities are part of the“smart growth” movement, working to integratehousing, transit, investment, and jobs programswith open space protection. Take the ChicagoMillennium Park Bicycle Station. This state-of-the-art biking hub provides lockers, showers, acafe, and perfectly brewed coffee for commuterswho spend $99 annually to rent a space. Thisuser-friendly facility in downtown Chicago takescars off the road, improves human health via ex-ercise, and creates community in a cheery cafe.

Individual consumers are part of the action.Take weddings. Over eighty billion dollars arespent annually on weddings and a small but grow-ing portion of this is being redirected to organicwines and foods, recycled paper invitations, andgift registries that reward the purchasing of fairtrade and green products.2 Over 3,000 farmers’markets where consumers support local farmersand artisans have been established in the past15 years. There is a growing movement of con-scious consumers supporting small and large busi-nesses that provide nontoxic cosmetics, reusedgold and silver, pollution-preventing electronics,high-recycled-content paper products, healthyhousehold cleansers, and organic cotton fabrics.

Finally, in the wake of September 11, 2001,many Americans are questioning the “more isbetter” definition of the good life. In a recent pub-lic opinion survey by my organization, the Center

for a New American Dream, 93% of Americansreported that we are too focused as a societyon working and spending and not enough onfamily and community. Americans are workinglonger hours than individuals in any other West-ern industrialized nation. Growing numbers areopting to take a pay cut, work less, and pursuemore fun with less stuff. Of course, they needsome semblance of a safety net to exercise thisoption—a net that has been badly damaged inrecent years. Americans are also financially over-stretched with personal bankruptcies at the high-est rate since the Great Depression. In this con-text, new forms of bartering, sharing, and jointuse of things such as household tools are becom-ing popular.

A new economic model is emerging, but itcould be sped on by academics doing holisticresearch projects with greater practical applica-tion. The new path must be supported by electedofficials, economists, and private sector leaderswilling to face the conundrum of our times: thatincreased consumption is literally bringing ourbiological home into ruin and yet, without con-sumption, millions fear for their security. It is timefor economists and scientists to talk. Fortunately,despite the taboo on dialogue about a revampedeconomy, there are many business leaders, localelected officials, consumer activists, and othersquietly modeling and championing the new way.

Notes

1. President Bush: “And the tax relief was importantto spur consumption and investment to get usout of this recession.” Senator John Kerry: “Andif we did that, we’d have more consumptionability in America, which is what we needright now in order to kick our economy intogear.” <www.washingtonpost.com/wp-srv/politics/debatereferee/debate 1013.html>. AccessedFebruary 2005.

2. See <www.organicweddings.com>.

References

Goodman, P. S. 2004. Producers and suppliers strug-gle to feed a voracious appetite. Washington PostForeign Service, 21 May, A01.

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ILO (International Labour Office). 2004. 2004 GlobalEmployment Trends. Geneva: ILO.

UN (United Nations). 1992. Agenda 21. <www.un.org/esa/sustdev/documents/agenda21/english/agenda21chapter4.htm>. Accessed April 2005.

About the Author

Betsy Taylor is the president of the Cen-ter for a New American Dream, an environ-mental nonprofit organization that seeks to help

Americans consume responsibly to protect theenvironment, enhance quality of life, and pro-mote social justice.

Address correspondence to:Betsy TaylorCenter for a New American Dream6930 Carroll Avenue, Suite 900Takoma Park, MD 20912 USA<Betsy@newdream.org><www.newdream.org>

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