{"id":2549,"date":"2020-05-25T12:00:52","date_gmt":"2020-05-25T12:00:52","guid":{"rendered":"https:\/\/www.zavit.org.il\/intl\/?p=2549"},"modified":"2020-05-26T07:03:36","modified_gmt":"2020-05-26T07:03:36","slug":"amidst-doubt-coronavirus-offers-opportunity-for-shift-to-more-sustainable-economic-and-environmental-models","status":"publish","type":"post","link":"https:\/\/www.zavit.org.il\/intl\/en\/weather-climate\/amidst-doubt-coronavirus-offers-opportunity-for-shift-to-more-sustainable-economic-and-environmental-models\/","title":{"rendered":"From COVID-19 to Sustainable Economy?"},"content":{"rendered":"\n<figure class=\"wp-block-embed-youtube wp-block-embed is-type-video is-provider-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Coronavirus Offers Opportunity for Shift to More Sustainable Economic and Environmental Models\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/sLK7nmmUeSs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>The coronavirus has disrupted the global economy and has caused what analysts are predicting to be the most severe <a href=\"https:\/\/www.ft.com\/content\/4d77ab77-0ff0-46ff-b30e-ae712c582457\">recession<\/a> since the Great Depression of the 1930s. According to the IMF, the global economy was expected to grow by 3.3% at the beginning of the year and is now expected to contract by 3%. Governments and central banks have implemented strategies to minimize the economic damages brought by the lockdown measures. Concurrently, environmental activists and once considered radical economists have found an opportunity to begin drawing up plans to transition to a more sustainable economy post corona. <\/p>\n\n\n\n<p>Amsterdam is one city making the move towards a more circular economy. Municipal officials have teamed up with Kate Raworth of Oxford University\u2019s Environmental Change Institute to develop strategies to <a href=\"https:\/\/www.theguardian.com\/world\/2020\/apr\/08\/amsterdam-doughnut-model-mend-post-coronavirus-economy\">implement<\/a> her doughnut economics model in the city. The goal of this model, described in her bestselling book <em>Doughnut Economics: Seven Ways to Think Like a 21st Century Economist<\/em>, is to meet human needs without exceeding environmental limits. Like a doughnut, the inner ring represents the minimum requirements to lead a good life, the outer ring represents the ecological constraints we must live by, and the area in between is where we thrive.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"859\" src=\"https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-1024x859.jpg\" alt=\"\" class=\"wp-image-2562\" srcset=\"https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-1024x859.jpg 1024w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-300x252.jpg 300w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-768x644.jpg 768w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-1536x1288.jpg 1536w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/Doughnut-transgressing-2048x1718.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Like a doughnut, the inner ring represents the minimum requirements to lead a good life, the outer ring represents the ecological constraints we must live by, and the area in between is where we thrive. Photo by&nbsp;Wikimedia Commons<\/em><\/figcaption><\/figure>\n\n\n\n<p>While Amsterdam\u2019s adoption of more sustainable principles might provide some hope, others caution against wishful thinking. Dr. Ori Sharon, Deputy Director at the Israel Society of Ecology and Environmental Sciences mentioned that \u201cduring times of economic crisis, it\u2019s hard for governments to invest in new economic models. Switching to a new model inevitably involves risk.\u201d He added that \u201cexperimentation typically works in times of economic stability when there is lots of capital moving around.\u201d<\/p>\n\n\n\n<p>Dr. Adi Levi, Scientific Director of the <a href=\"https:\/\/www.isees.org.il\/?lang=en\">Israel\nSociety of Ecology and Environmental Sciences<\/a>, pointed out that the observed reduction in air pollutant levels &#8211;\nsuch as nitrous oxide &#8211; in countries where strict quarantine policies were\nimplemented, will be temporary. Additionally, with\noil prices at a historical <a href=\"https:\/\/www.dallasnews.com\/business\/energy\/2020\/04\/20\/oil-prices-fall-to-historic-lows-as-west-texas-crude-futures-go-negative\/\">low<\/a>, \u201cwe can expect oil demand to increase back to normal levels once\nbusinesses open up again. Lastly,\nsince no infrastructure or technological shift\noccurred during the lockdown, the\ntransformation rate to renewables and electric transportation might be slowed\ndown.\u201d As China begins to emerge from its own lockdown, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-03-09\/post-virus-stimulus-packages-could-devastate-global-climate-goals?in_source=postr_story_1&amp;sref=oUjKJw8m&amp;utm_campaign=Hot%20News&amp;utm_source=hs_email&amp;utm_medium=email&amp;utm_content=84513001&amp;_hsenc=p2ANqtz-86ljtt5qVjQOHzIJd3rG5tTXdIdrRqCfLfUaWZvPpyxZacLFcEIqfcr2NgMZVmGkU6HRYjGECKvhlXOOGOT7C03bR78w&amp;_hsmi=84513001\">plans<\/a> to invest up to a trillion USD in major projects,\nincluding gas pipelines and nuclear plants have been announced. This response\nis expected to outweigh any of the short term impacts of reduced energy\nconsumption and emissions during their lockdown.<\/p>\n\n\n\n<p>In a webinar presented this month\ntitled \u201cWill COVID-19 Kill or Save the Planet?&#8221;, Dr. Ram Fishman of the\nNITSAN Sustainable Development Lab at Tel Aviv University suggested taking\nlessons from the 2008 financial crisis. During that time, President Obama\npledged to bail out the crumbling automobile industry on the condition that\nthey promise to avoid laying off workers and to improve the fuel efficiency of\ntheir new automobiles. This sort of deal had significant social, environmental,\nand economic impacts resulting in a win-win-win scenario.&nbsp;<\/p>\n\n\n\n<p>The current situation has led to a political <a href=\"https:\/\/www.politico.com\/news\/2020\/04\/13\/congress-deadlock-coronavirus-deal-183457\">standstill<\/a> in the USA with democrats and republicans fighting over which industries to direct stimulus packages towards. However, other nations could use this crisis to support clean energy industries or influence other industries with certain provisions in the stimulus packages like President Obama did in 2008.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"1024\" height=\"683\" src=\"https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-1024x683.jpg\" alt=\"\" class=\"wp-image-2558\" srcset=\"https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-1024x683.jpg 1024w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-300x200.jpg 300w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-768x512.jpg 768w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-1536x1024.jpg 1536w, https:\/\/www.zavit.org.il\/intl\/wp-content\/uploads\/2020\/05\/martin-sanchez-j2c7yf223Mk-unsplash-2048x1365.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Reduction in air pollutant levels &#8211; such as nitrous oxide &#8211; in countries where strict quarantine policies were implemented, might only be temporary. Photo by Martin Sanchez on Unsplash<\/em><\/figcaption><\/figure>\n\n\n\n<p>Unfortunately, in Israel, some\nstimulus packages have also come without any sort of provisions. Dr. Sharon\nmentioned that \u201cone of the big problems is that in the middle of a rapidly\ndeveloping crisis, there is no time for long-term strategic thinking. We are\nconsidering market remedies under an emergency situation. The government should\nuse this as an opportunity now that companies depend on it, to impose\nprovisions, which, unfortunately, is not happening.\u201d<\/p>\n\n\n\n<p>According to Dr. Sharon, the\nIsraeli government has promised to bail out El Al if they default on their\nloans, without any sort of provisions. Currently, El Al brings in an estimated <a href=\"https:\/\/www.calcalistech.com\/ctech\/articles\/0,7340,L-3799830,00.html\">3 billion<\/a> NIS to the Israeli economy in taxes and fees. The airline\nindustry is responsible for over <a href=\"https:\/\/ec.europa.eu\/clima\/policies\/transport\/aviation_en\">2%<\/a> of human-induced\ncarbon dioxide emissions.&nbsp;<\/p>\n\n\n\n<p>On a positive note, Dr. Fishman\nmentioned how Black Rock, the globe\u2019s largest asset manager, has, in the last\nyears, decided to diversify their customers&#8217; portfolios and begin investing in\ngreen technologies due to customer demands. As the fossil fuel industry is\nhighly dependent on banks and investment firms, investors could potentially\nhelp redirect capital towards clean and greener firms and force the fossil fuel\nindustry to comply with stricter environmental regulations. \u201cThis can have\nmassive impacts on the fossil fuel industry because they can&#8217;t survive without\nthese investments,\u201d Dr. Fishman added.&nbsp;<\/p>\n\n\n\n<p>Currently, with capital moving out of the stock market and being directed to safer investments, customers could use this time to demand that polluting companies change their policies so that once economies bounce back and investor confidence is restored in the stock market, real effective change can occur.&nbsp;<\/p>\n\n\n\n<p><em>This ZAVIT article was also published in&nbsp;<a href=\"https:\/\/www.ynetnews.com\/environment\/article\/B1aFByjqU\">Ynetnews<\/a>&nbsp;on 05\/23\/2020.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The coronavirus has disrupted the global economy and has caused what analysts are predicting to be the most severe recession &#8230;<\/p>\n","protected":false},"author":122,"featured_media":2577,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":[],"categories":[13,11,8],"tags":[],"acf":[],"post-meta-fields":{"_edit_lock":["1590567026:11"],"_edit_last":["11"],"subtitle":["While global leaders are trying to transition their economies back on track, environmental activists see a unique opportunity for governments to embrace more sustainable economic and environmental principles "],"_subtitle":["field_59d3d36ea7fe1"],"_wpml_media_duplicate":["1"],"_wpml_media_featured":["1"],"_oembed_b88d821a93a5ef9f98ce4603b06d5986":["<iframe title=\"Coronavirus Offers Opportunity for Shift to More Sustainable Economic and Environmental Models\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/sLK7nmmUeSs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>"],"_oembed_time_b88d821a93a5ef9f98ce4603b06d5986":["1590407837"],"_thumbnail_id":["2577"]},"_links":{"self":[{"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/posts\/2549"}],"collection":[{"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/users\/122"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/comments?post=2549"}],"version-history":[{"count":17,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/posts\/2549\/revisions"}],"predecessor-version":[{"id":2590,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/posts\/2549\/revisions\/2590"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/media\/2577"}],"wp:attachment":[{"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/media?parent=2549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/categories?post=2549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zavit.org.il\/intl\/wp-json\/wp\/v2\/tags?post=2549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}