Eco Currency

The research provided in this project is a first step into a possible introduction of an ECO-currency. It is clear that the proposition provided is merely a concretization of the research and opens up a world of new questions. The proposition shows that many practical issues still need to be researched, designed for and validated. Future projects could use the foundations this project has laid, to dive into these new questions, and continue the rationale.

The third scenario is based on interest over environmental value. Imagine you have a piece of land, sea or something else that is worth something for the ecology. A taxator will define the worth of this specific object according to Simpson’s diversity index. Every month interest is paid in ECO’s over this amount.

The second scenario. Many of our sources and research (this, and this TED-talk give a good introduction) show that a very good way towards reaching a goal is by collaboration and a bottom up approach. We don’t need big institutions, a lot of rules and bureaucracy, but allow a self-governming emergent system to grow. This is but one of the two main pillars on which this scenario is build.

This is the first of a series of scenarios. The starting standpoint we took was that a currency should be backed up by ‘real’ value. In the past this used to be the case with gold. Gold has some good properties which make it very valuable as a trading currency, and has been used as this for over 4000 years in a almost all cultures.It is not possible to get more through manipulation, and is thus a very good way to measure wealth.

In his talk at TED Oxford  in July 2009, Geoff Mulgan explains how he believes our economical system should focus on social and human growth since the current focus on economical growth is no longer sustainable. Although most governments currently spend huge amounts of money to fix the failing economical system, they should actually use the crisis to jump forward towards a different type of economy which is not about consumption or credit but about things with actual value.

In an article by the Dutch CPB (bureau for economic policy analysis) the application of the contingent value method is critically assessed for cost benefit analysis. They question whether nature and landscape values can be expressed in Euros. Although the method is widely used in assessing e.g. infrastructure projects, many critics remain.

The current situation and the potential of eco-currency

Currently a brazilian farmer like Alberto, with land in a rain forest doesn’t have much choice to survive. The easiest way for him to make any money out of his land is to cut the wood, burn the rest of it and turn it into farmland so he can start agriculture.