ࡱ> EGD /bjbjcTcT 4:>>'  cccccwwww$ w h$scccNNN"ccNNNNNx w.Nv0 N|NcN(NN   ): New Patterns for Environmental Policy & Economic Development When we look back over our shoulders 10 years or so, it appears the government's role in regulating clean air and clean water actually improved both, as well as the public mindset towards a cleaner and healthier environment. While the government did intervene for the public good it won't be as effective in the upcoming years... At least not as effective as the economic marketplace can prove to be. During the recent Counselors of Real Estate conference on the environment, several amazing scientific opinions representing the entrepreneur's approach to the new age of environmental sensitivity were presented. The most sensible definition presented identified pollution only as a resource out of place. If we would bring ourselves around to accepting this basic definition, we will find answers to the tug-of-war between the mindsets unable to define the problems. In this country we are sure the water is cleaner and the air is cleaner than ten years ago, however we are becoming a nation of people trying to profit from one environmental crisis after another. The answers presented by free-market environmentalists deserve attention and will prove to be the most effective in maintaining the world's highest levels of pollution-free living. Look back to the $100 to $150 billion asbestos scare to remove it from public schools. Certainly, at high levels and for extended exposures (10 to 15 years) asbestos may be a dangerous in-the-air substance, but experts agree today the removal of asbestos in the schools has only made the schools more asbestos-dangerous when compared to leaving it in place. Radon gas may cause miners who smoke to be affected, but the bodies of most all persons reading this article are able to reject low levels of radon gas. The dioxin and cellular phone panics, the lead-based paint mandate and others defined in magazines and newsletters just aren't being taken seriously by those in everyday business activities. Environmental revolutions rest with government and its environmental waste and the monopolistic generation of energy. Advanced energy-efficiency by the leading generators of electricity is to be applauded after years of wasteful over-investment. Pacific Gas and Electric, we are informed, has no proposed power plants----reduced from 17 or so just a few years ago. This insightful utility has recognized consumers don't want electricity; they want user-friendliness and lower cost comfort. The so-called megawatt revolution will certainly point out exemplary design as mandatory in new buildings. Our real estate industry has over invested $1 trillion in air conditioning alone according to Amory Lovins of the Rocky Mountain Institute. Equipment costs is 1/3 of this over-investment and power supply comprises another 1/3 of the waste. We are spending $150 billion less this year when compared to energy costs since 1973, but nearly $300 billion continues to be wasted according to Dr. Lovins. New technology for efficient end-use of electricity causes us to save twice the amount as five years ago even at 1/3 the cost savings. All power plant expansion of capacity is today provided by consumer efficiency. This form of economic-driven conserving will continue to expand in the next few years. Free-market environmentalism will provide answers to the several questions posed by the scare scientists. Milton Friedman once stated, I don't have faith in the market, I have evidence." Of course we should follow basic standards of environmental practice. We should cause no harm to others; and we should recognize nature as being complex. We don't really know how to alter or reverse it. We should include humility in our personal environment. The use of risk analyses forms the basis for arriving at logical environmental clean-up standards and resulting solutions. All risk cannot be eliminated and the benefits of spending money should be considered when calling for action of minimal hazards to be cleaned-up. This thought of free-market environmentalism is supported by the belief of looking after the poorest citizens and the rest of the population will take care of themselves. People Magazine can no longer be our source of emotional scientific decision-making profit-driven environmentalism. Based on the fact that people look out for their own interests, Jane Shaw of the Political Economy Research Center (PERC) in Bozeman, Montana cites why private property rights will be the cause for improvement to our environmental concerns: 1) Pollution is waste; waste is expensive. There is an incentive to improve waste. 2) Lack of invasion by pollutants is a protection granted us, and we respect the rights to be protected. 3) Once our basic needs are reached, people want more environmentally-improved things around them. In the days of forming our independence our founders feared force being used to quarter soldiers against the will of property owners. Now we face a far-worse situation, which is being forced to quarter endangered species. It seems the Department of Defense respects property rights and the Department of Fish and Wildlife does not. We need to convince the White House writers of this Endangered Species Act that no seizure of lands without compensation still is the purpose of the 5th Amendment to the Constitution. The use of budget restraints and financial feasibility should be considered also. A private means for protection of endangered species is needed. If the landowner knew the land was not to be seized by the government, he would welcome, rather than dread, the find of an endangered species. If we respected the property owner's right against harm from pollutants, the process of environmentalism would work... Which is certainly in contrast to the Department of Fish and Wildlife Service's attitude of land use taking" not being a taking away what wasn't yours anyway... So its not a taking. If you find this thinking to be confusing, you're not alone. Emotional environmentalism is reinforced by actions such as these involving endangered species. The political lobbying processes which have pleased property owners in the past won't be effective in the future. Scott Jenkins of the Scripps Institution of Oceanography aptly states: "you cannot buy political solutions to problems like these, you can only rent them." The uncertainty of political positions can no longer be relied upon. From the industrial side, Robert Campbell, Chairman of Sun Company, says In February 1993 Sun Company became the first Fortune 500 Company to endorse the Coalition for Environmentally Responsible Economies (CERES). This is a very dedicated social activist group comprised of consumers, environmentalists, religious organization and stock portfolio managers. When we studied the 10 CERES Principles we found that most of them matched what we already believed. There were, of course, differences, but it was not a stretch for us. It was, instead, a logical extension of our existing commitment to preserve and protect the environment." Chairman Campbell further states, "In our company we'll pay an extra $50 million to reformulate our gasoline to meet the 1995 requirements. Then we'll spend a couple of hundred million more dollars to achieve the 1998 standards." This type of sincerity illustrates industry's commitment to environmentalism, but in my opinion the reasoning and methodology should remain in the hands of these market-driven entrepreneurs rather than with the governmental agencies. The past actions which have caused leaks are more of a problem than today's business practices. The new underground monitoring systems stop long-lasting leaks which contaminate groundwater. Consumers have resisted the industry's quest for lifestyle changes, but they have strongly called for restrictions on autos and fuels. They will call for a car redesign by General Motors which may cost millions of dollars but will resist auto inspections at the local service station. Many large non-point pollutants such as storm sewers and water treatment facilities are being focused upon in the re-authorization of the Clean Air Act (Section 319). Management practices are being defined also. The run-a-way status of perceived authority by the Department of Fish and Wildlife Service, coupled with the unrestrained expansion of the Endangered Species Act is not a solution that will be good for any landowner or for the endangered animal. Richard Stroup of PERC states the lack of compensation for taking of land not only violates private property rights but leads to "Shoot, Shovel and Shut Up" practices. The taking of land used by endangered species is understood by the wildlife service to mean no harassing of the animal by the landowner as well as the landowner's obligation to take care of it.....no matter what the cost. This most current "save the planet" approach by government is going to do more harm to the endangered species population than good. There are no interesting and headline-type solutions to a problem known as environmentalism; which in itself still awaits definition. The tug-of-war between a generation of rampant consumers is being pulled the other way by a generation of caring conservers. The age of these caring conservers is upon us. The dreams which drove the 1950's industrial expansion and the expansion of the suburbs are quickly ending. New dreams to drive us towards this "caring conserver" mindset are apt to redefine the contributions to the next economy. The cost to landowners and their private property rights will be great. The movement is one that wants solutions but is unable to define the problems. John M. 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