Enlarged economic measures help us build a rebalanced world
As they are deployed, enlarged economic measures rebalance our vision of the world and our action on the planet.
Accounting, economics and finance limited to money have opened up infinite fields in some areas, but they have also narrowed our vision of the world in others, helping to upset the balance of life.
What follows is a sketch of the fields that enlarged economic measures open up for human creativity.
Enlarged private accounting is the foundation for all management tools
-It enables enlarged management control as well as enlarged economic calculation. The decarbonation result for a project is the same as for an organisation: instead of comparing one year with the previous year, it compares the situation before and after the project.
It feeds an enlarged finance thanks to a decarbonation result that is as easy to handle as the monetary result, which makes it possible to direct savings where they will decarbonate the most (with the same monetary profit). In enlarged finance, each investment has its own (past or projected) result in terms of money and carbon. The tools need to be invented to help each organisation and each investor to combine these two results as effectively as possible.
– It means defining the rules for enlarged competition to ensure the transparency and honesty of carbon weights.
– It nurtures an enlarged micro-economy capable of shedding light on two-dimensional choices: money and carbon. As well as the effect of price on a decision, it will be able to analyse the effect of carbon weight and its reputational dimension.
Enlarged public-sector accounting is being built on the same principles
– It will provide an opportunity to discuss enlarged carbon budgets, with tools to help local authorities meet their twofold budget constraints: money and carbon.
-In addition, the authorities in a given area need to monitor its enlarged economic result, which gives not only its monetary result (the added value of its players, in money) but also its decarbonation result (that of its players, including non-domesticated species, see their role).
-The enlarged accounts of the community and its territory will help the community to inform the future with enlarged carbon planning and verification of the coherence of its dual trajectory, in money and in carbon.
Enlarged official statistics help public authorities and private players to steer decarbonation
–An enlarged national accounting system needs to be developed. It will aggregate the enlarged accounts of organisations and construct the enlarged economic result of a territory (already mentioned). It will measure the decarbonation achieved by consumers and savers. It will provide the basis for an enlarged macro-economy.
– Enlarged production statistics will track the average weights of the main products (which will make it possible to measure the decarbonation result linked to an increase or decrease in production) and a conservative weight (helping accountants to compensate for the absence of a supplier’s weight).
Building bridges with other sciences will be easier
– The enlarged life sciences will be able to integrate emissions or captures of non-human living species into the enlarged results of a territory.
– Enlarged law will be able to define the responsibilities and rights of non-domesticated species and their human guardians.
The carbon weights give the producer the annual decarbonation of his organisation (his contribution to the annual decarbonation of the planet, in the same unit : kilos or tonnes of carbon). It measures :
– Its ability to reduce the unit carbon weight of a product sold, by producing it differently (by convention, the reduction in the weight of purchases goes towards decarbonation by suppliers). Decarbonation = sum for each type of purchase of the product of the variation in its unit quantity by its carbon weight
– Its ability to increase sales where its product is lighter in carbon than average, and to reduce them where it is heavier. Decarbonation = variation in quantity multiplied by the difference between the product’s carbon weight and the average for producers.
These amounts can be corrected by decarbonation sharing agreements : the inventor of a decarbonation solution receives half of the announced decarbonation when it occurs.
The annual decarbonation of financing is that of the players financed, and that of a region is that of the players attached to the region.
(details in Measuring decarbonation)