The Foreign Service Journal, February 2008

nomic planning. Yet the biggest obstacle to the pursuit of sustainable development, both in the U.S. and elsewhere, has been the misguided belief that protecting the envi- ronment is antithetical to economic interests. Unhappily, for far too long concern about the environ- ment has been regarded as a peripheral issue that can be treated as a luxury in the context of prosperity. And far too many people still say, “Yes, I’m for the environment ... as long as it doesn’t cost jobs.” The fact is that the economy is inextricably tied to the environment and totally depen- dent upon it. Five biological systems — croplands, forests, grass- lands, oceans and fresh waterways — support the world economy. Except for fossil fuels and minerals, they sup- ply all the raw materials for industry and all our food: • Croplands supply food, feed and an endless array of raw materials for industry, such as fiber and vegetable oils. • Forests are the source of fuel, lumber, paper and countless other products. • Grasslands provide meat, milk, leather and wool. • Oceans and fresh water produce food and drink for individuals and resources for industries. Those resources constitute the foundation for all eco- nomic activity and all jobs. Stated in the jargon of the business world, the economy is a wholly-owned subsidiary of the environment. And when the environment is forced to file for bankruptcy because its resource base has been dissipated or irretrievably compromised, then the econo- my will go down with it. American leadership to avoid a bankrupt future by set- ting the right example and bringing the world along remains central. The most important step we can take at home is putting a price on carbon that reflects its true cost to the environment and society. One way to do this is through a carbon tax. The other is a “cap and trade” sys- tem that draws on the power of the marketplace to reduce emissions in a cost-effective and flexible manner. The purpose of such measures, it is important to note, is not to impose higher energy costs on consumers. Rather, it is to set the rules of the game in such a way that F O C U S F E B R U A R Y 2 0 0 8 / F O R E I G N S E R V I C E J O U R N A L 19