Nature provides us with food and raw materials. It regulates the climate and keeps the gears of the material cycle well-oiled, including the stage of waste utilisation. It gives us recreational space and entertainment – and all of this seems to be for free. The bottom line, however, is that our value creation means overexploitation and destruction of nature. How can we put a price on the services rendered by the ecosystem and utilise the expertise of natural history museums? An interview with economist Henry Sauermann:
LIB: How can we put a price on biodiversity?
Prof. Dr. Henry Sauermann: Biodiversity doubtlessly is a valuable asset that transcends economic categories. Nevertheless, we must recognise its value in economic terms in order to ensure their preservation. After all, in a society organised around a market economy, prices are important signals for controlling supply and demand of scarce goods. One option is that of developing a biodiversity footprint that quantifies the ecological impact of products and services. Such a footprint may serve as an indicator for incorporating environmental costs into the economic decisions of companies and consumers. Putting a price on nature can thus help us make sustainable decisions. However, the details of calculation are still in their infancy and further interdisciplinary cooperation between science, politics, and business is needed to refine these concepts and put them into practice.
LIB: How can we promote nature-oriented behaviour in companies?
H. Sauermann: This complex process requires transparency and information. Ideally, we would identify specific options for action for the various economic sectors to improve our biodiversity footprint. We have to establish sustainability as an integral part in our business strategies, by which I mean a permanent balance between economic, ecological, and social performance. Companies should not just protect the environment because others expect them to do so. A sustainable strategy would also open up new market potential and increase the company’s value in the best case.
LIB: How can subsidies support environmentally friendly practices?
H. Sauermann: Subsidies are effective yet complicated tools for steering and accelerating the shift towards environmentally friendly practices. They must be linked to clear environmental requirements. Their time frames must suffice to let companies respond to them with long-term planning. Financial support for companies should be linked to a commitment to promoting environmentally friendly innovation and strive for sustainable change. This can be done, amongst other things, by way of tax incentives for environmentally friendly investments or through funding programmes for research and development of sustainable technologies. However, politically anchored subsidies can also be misused or adapt too slowly to changing economic or technological circumstances. Incentives for protection of biodiversity are often better provided by the market itself.
LIB: What is the role of civil society?
H. Sauermann: We must not underestimate the citizens’ role in promoting sustainable practices. First and foremost, they can use their purchasing decisions to incentivise companies to offer environmentally friendly products. However, they can also take action beyond their roles as consumers. An increasing number of citizens are participating in citizen science projects where they can be involved without any formal ties to specific scientific institutions, which in turn contributes to a broader collection of data and a better understanding of environmental impacts.
Such data will hopefully become a basis for the development of better measurements for the biodiversity footprint. This can then help us develop incentive systems, subsidies, or environmental regulations. Citizen commitment in Citizen Science projects also often increases environmental awareness amongst the participants or can help them discover creative ways to improve their local environments.
LIB: What role can natural history museums play in this context?
H. Sauermann: Natural history museums have enormous potential to become educational centres for sustainability. Not only can they impart knowledge about nature, they also increase awareness of environmental issues. Presentation as well as the joint development of innovations and research results help them introduce the general public to scientific knowledge. Museums can help sensitise people to the importance of biodiversity and environmental protection and inspire them to actively participate in nature conservation. Natural history museums act as hubs for citizen science activities in many cities, once more emphasising their vital role at the interface between science and society.
LIB: What are your hopes for the LIB?
H. Sauermann: The LIB with its diverse museum and social activities is a place that encourages people to actively participate in nature conservation and sustainability. As a member of the Scientific Advisory Board, I have also been able to see first-hand how much research on the highest level is underway here. The LIB is in an ideal position to turn into a dynamic platform for the exchange of knowledge, innovative ideas, and specific measures. This will help the LIB drive sustainable change and make a positive contribution to nature, the economy, and society.
“Putting a price on nature can help both companies and consumers to make sustainable decisions.”
Prof. Dr Henry Sauermann
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Prof. Dr Henry Sauermann researches and teaches in the disciplines of entrepreneurship and citizen science at the European School of Management and Technology (ESMT) Berlin. He enriches the discussions on the economic perspective and the involvement of citizens via Citizen Science projects as a member of the LIB’s Scientific Advisory Board.