EcoCommerce Components – Clear Value for Ecology in the Economy

EcoCommerce relies on the same basics of supply, demand, and price to create markets. To meet this challenge, EcoCommerce creates another dimension of the economy by adding new “coins”, language, intelligence, and portfolios. Determining how to value the more tangible goods and services of our economic system, such as a bushel of grain, a car or a haircut, seemingly developed spontaneously. The less tangible services such as clean water, clean air, and habitat that are generated by land management strategies are not valued with a clear market signal. This became clear to Adam Smith in the 18th century as he contemplated “value of use” and “value in exchange”. It is becoming clearer to us as we recognize the economic values of these less tangible ecoservices.

This became clear to Adam Smith in the 18th century as he contemplated “value of use” and “value in exchange”.  It is becoming clearer to us as we recognize the economic values of these less tangible ecoservices.

 The challenge that lies before us and our economic system is to develop “coins”, language, landscape intelligence and ecoservice portfolios so EcoCommerce can develop spontaneously.  This is critical, since a successful economic system relies on billions of decisions made by millions of people in an almost subconscious manner.

These EcoCommerce components will generate a market signal leading to efficient transactions to spur an effectual demand.  Simply put, an effectual demand is when an adequate price is applied to a good or service that, in turn, motivates an individual to produce it. 

Ironically, ecoservices have been in demand forever, but from an absolute demand perspective.  This means that people have wanted them, but they did not necessarily have the means or method to economically value them.  In other words, everyone wants them, but no one has the desire or capacity to pay for them.  EcoCommerce accomplishes this by using a “smart” ecoservice assessment based on land management indices to describe the quality and quantity of the ecoservices produced.  These new data sets create the landscape intelligence that describes how the ecoservices may interact to create ecological and economical value. 

With these values, EcoCommerce portfolios can be created for the geographical scale that is desired.  Farms can generate landscape intelligence that is applied to larger geographical scales such as watersheds, cellulosic sheds, or river basins; or to industry or retail sectors to calculate their footprints for carbon, energy, water and habitat; or compiled at the national level for an ecological index for a comprehensive accounting framework to be including in the System of National Accounts such as GDP and GNP.