Shaping a More Meaningful Economy — Part 4
Environmental Respect
For Pioneers
Do you also believe that the current economic system is unlikely to solve the problems it causes? Are you ready to overcome old thought patterns and break new ground?
At One-X, we have spent the last few years working to develop a new, workable economic system. In our first article we have described the vision of this new paradigm, and we would like here to further introduce you to the concept and invite you to participate in this work.
We are seeking co-creators to bring this next economic system to life in larger contexts, where it can be further tested and create real impact. After two years of proof-of-concept, we believe that One-X is now mature enough to bring value to others.
Five Qualities to Overcome Our Challenges
The existing global economic system is plagued by pressing issues: growing social inequality and excessive exploitation of natural resources. One-X offers an open network where people and projects can come together to solve these challenges.
One-X’s long-term goal is to meet the needs of everyone in the world. While this may seem utopian at first, One-X provides the ideal experimental space to move closer to this goal through five key qualities:
- Voluntary Engagement
- Peer Empowerment
- Environmental Respect
- Purposeful Investment
- Fair Participation
These qualities are achieved through the consistent implementation of ten principles, two for each quality. Next to our article on Peer Empowerment we now delve into the quality of Environmental Respect so that future generations will also enjoy living in our environment.
Using Less to Get More
In One-X, individuals and organizations operate with a profound sense of responsibility toward the environment. They actively avoid overusing or damaging scarce resources and instead collaborate to protect and optimize the utilization of available resources. This includes prioritizing resource reusability and ensuring proper disposal after use to minimize negative environmental consequences. One-X rejects the practice of externalizing costs for individual profit maximization.
In the current economy the externalization of environmental costs is the norm. Only when this leads to evident issues regulations are issued to incentivize a more respectful behavior. Due to the strong interests at play, lobbying groups work in the background to push for the interests of few, eventually at the expense of the planet. Due to overconsumption, we are globally depleting our resources in an unsustainable way, mostly driven by the richer countries. We seem to often become active when it is already too late.
The degradation of the environment has costs in terms of diminished quality of life for all and lessens our resources available for a good life in the future. Rising oceans, pollution, water scarcity, and extreme natural phenomena are examples of results from our collective behavior that we can still correct to influence and even reverse the trajectory of these phenomena.
To protect the environment, we aim to strike the right balance between current resource needs and sustainable consumption for the future. Prioritizing what is valuable and maximizing the use of existing resources are essential. Decisions regarding scarce resources should consider the costs and benefits for society as a whole. The next two principles address these aspects.
5th Principle: Use What is Available
To live a good life, we want to buy the products and services that meet our needs. For the purchase of products whose production is particularly resource-intensive (e.g. cars or real estate) and which cost a corresponding amount of money, we usually seek financing help from banks. The purchase and sale of these particularly expensive objects usually involves a lot of effort, e.g. hurdles in the transfer of ownership, and there is a risk of not being able to realize the value on the market. Therefore, in today’s economic system, it is common to sell these objects only when you either need capital or are sure that you will not need them in the future. Some wait even longer to sell in order to make more profit. This can be well observed in cities where some of the buildings are vacant while the demand for apartments and offices continues to grow. Many accumulate more property than they can use at the moment as a hedge for future needs or for speculation.
In One-X, we recognize that natural resources on our planet are limited, and the more we individually accumulate, the less others have available to also live a good life. If each of us took only as much as he or she needed at any given time, more needs could be met. Or the other way around: everyone could live a similarly good life with less resource consumption and less environmental impact. One-X members therefore only take the resources they actually need for themselves. Unused products that could be reused are made available to everyone else to create more value.
How have we implemented this principle?
In One-X, ownership for all products that can be reused is given only for a limited time and paid for by rent. This has several positive effects. For one, consumers no longer have to spend all their capital to own something of great value. For another, there are usually more options and better use is made of existing products, so fewer natural resources need to be consumed. If what is rented is damaged or lost, it is also easy to switch to another product. All reusable products are made available by the institutional entity Market to members for rent in a transparent marketplace. In this way, each member gets the products they need most and only pays for the time these actually provide value.
Critics argue:
- “Paying rent for all products is too complicated.” We respond: In One-X, members purchase non-reusable goods like food and energy. Renting resources is only offered where it makes sense.
- “Members might not have personal objects since many things can only be rented.” We respond: Members can retain personal objects by paying rent, as we understand the need for personal belongings.
Imagine if, in an open market, each member only took what they currently needed, leaving the rest available to others:
- Then high-quality, durable products can be used by more members. As a result, less is produced and the environment is less polluted.
- Then more resources are available for members by renting when needed. We can choose from a greater variety.
- Then we can consume with a clear conscience, knowing that what we use, others will miss less.
6th Principle: Protect What is Precious
The manufacturing of products and delivery of services often consumes resources that are valuable to the community. The resulting costs to the community can vary widely depending on how they are produced, used, and disposed of. Depletion of available resources and environmental damage can be temporary or permanent. An example of such costs is dwindling fish stocks in the oceans, which can be slow to recover and have negative impacts on further ecosystems. In the current global economic system, individual resources are protected by regulations and agreements only when the damage caused reaches a threshold and attracts public attention. Often, however, they receive little or too late attention. Only what belongs to someone in particular is protected from the outset.
At One-X, we consider anything that is potentially valuable to the community to be a resource worth protecting. For a resource to be consumed, the benefits must be greater than the costs to the community. We therefore try to estimate the total community cost of products and services and transparently include it in the price of goods. In this way, each person and each company can weigh whether it is worth bearing these costs and ultimately purchase only those resources from which greater benefits can be expected. This greater clarity helps minimize costs to the community.
How have we implemented this principle?
In One-X, we use a community deposit for all resources relevant to the community to ensure that for each transaction, the future benefits at least cover the future costs to the community. The consumer pays a deposit at the time of purchase equal to the lost benefits to the community if the goods are destroyed and the potential damage from improper disposal. It is the responsibility of the institutional entity Market to estimate the deposit amount for the relevant goods. When the buyer resells or returns the goods, he or she will receive back the original community deposit on a pro-rata basis, according to the portion of the goods actually passed on and less the cost of recycling. The actual effectiveness of this deposit system will only become apparent once enough members have joined One-X.
Critics argue:
- “If only human benefits are considered, the planet suffers.” We respond: Only humans can advocate for the needs of other living beings and have an interest in a sustainable planet.
- “Isn’t it too complicated? Do I have to appraise my garden vegetables before selling them?” We respond: We regulate only what is relevant and reasonable. For items with overhead costs exceeding benefits, we rely on members’ judgment.
Imagine if we simply knew what the environmental costs of products really were and included them in the price:
- Companies could use all available intellectual property freely since no additional resources would be consumed.
- Producers and consumers would collaborate to minimize environmental costs, reducing production costs and customer prices.
- Environmental damage reparation, such as from landfills, could be effectively financed through appropriate pricing.
Shaping the New System Together
In recent years, the value of the five qualities has become increasingly apparent, yet there is still so much more to explore. Can you envision this potential too?
If these topics resonate with you, we invite you to read the other articles in this series (linked below). If you’re uncertain about their relevance, take a moment for personal reflection. Also, feel free to contact us at info@one-x.org and we will respond promptly.
We welcome pioneers who are eager to share their principles, practices, and experiences with us, and work together to develop a new economic system for broader application.
We look forward to hearing from you!
Andrea Demaria & Tobias Bantzhaff
Articles of the series Shaping a more meaningful economy:
- Part 1: Toward a New Vision
- Part 2: Voluntary Engagement
- Part 3: Peer Empowerment
- Part 4: Environmental Respect (this article)
- Part 5: Purposeful Investment
- Part 6: Fair Participation
- Part 7: A Path to the New Economy
- Part 8: Fundamentals of One-X (to be published