Whether we view the natural environment as a separate realm or a part of a larger one, it is clear that ongoing economic growth depends on the subjugation of the natural environment to sustain the economic system. This economic system has altered the nature of environmentally related human and economic activity. However, the concern is clear: while economic activity fosters development across various areas and exploits both humans and the environment, it is often seen as beneficial. To echo British economist Joan Robinson, ‘the only thing worse than being exploited by the capitalist system is not being exploited at all.’ This suggests that exploitation, which upholds the economic system, is perceived as positive. Proponents of the neoclassical economic school argue that sustaining the economic system leads to prosperity for all. Yet, the problems arising from this exploitation demand our attention.
The most pressing issue resulting from this exploitation is environmental degradation due to relentless economic activity. This activity, driven solely by the aim of maintaining and expanding the system, often ignores adverse effects on the natural environment and focuses on its own gains. In summary, free market economies necessitate continuous economic growth, mainly through capital multiplication. This capital is then reinvested into supposedly profitable activities, generating even more capital. However, questions arise about when this reinvestment will no longer yield returns. How much can companies invest in new product development, and how much can people consume? When returns diminish, capital is shifted to previously untouched, uncommodified areas.
Commodification, simply put, involves turning anything material or non-material into something that can be bought, sold, and used. Consider a book as an example; it can be purchased with money and read for pleasure. This book was likely created for these purposes. The complexity arises when non-economically produced items become commodities. Since the term commodity originates from economic theory, it is expected to apply to economically produced goods that can be bought, sold, and used. Can a tree from a nearby forest be a commodity? Two answers: yes and no. Yes, because it can be bought, sold, and used (such as being turned into wood). No, because it doesn’t belong to the economy in terms of production. Another example is care (child or elderly); can it be a commodity? Yes, because it can be bought, sold, and used. No, because care, while essential to the economy, is not inherently an economic activity (to be discussed further in a later article).
The commodification of nature is the first step in subjecting the environment to the economy. This process assumes the environment is an external realm, brimming with resources for endless exploitation. Two contradictions underpin this assumption: firstly, the environment is not an external realm independent of the economy, and conversely, the economy relies on the environment as they mutually shape and define each other; secondly, the natural environment is finite, and eventually, the resources that the economy eagerly exploits will be depleted. This subjugation has enabled the economy to elevate itself above other realms, neglecting mutual benefit and necessity relationships, and allowed the rampant exploitation of the natural environment through deforestation, pollution, and waste-dumping.
These issues, which stem from a distorted inter-realm relationship where the economy assumes a dominant position and exploits other realms like the natural environment for its continuation, form the environment-economy nexus. They are central to the current global environmental crisis. However, there is hope. Most global decision-makers acknowledge the environmental damage caused, prompting an active response. The principle of constant expansion is to be retained but modified to occur sustainably, minimizing further harm to the natural environment. This heralded the emergence of sustainability, emphasizing reuse, reduction, recycling, and zero-carbon emissions, aiming for a greener economic approach mindful of the natural environment. Yet, is it enough and is it genuine? These questions will be explored in the next article.
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