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Creating Economic Models Assessing True Environmental and Social Costs

Balancing Economics and the Environment

Reforming International Financial Institutions

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Economics and the Environment

Our economic system rarely reflects the true environmental and social costs of goods and services. People wind up paying these costs, in terms of higher taxes or losses in personal health.

Because the price of goods and services do not reflect the real costs, perverse signals are sent in the marketplace. Environmentally and socially damaging goods are cheaper than they should truly be. New technologies and products that are better environmentally and impose fewer health costs compete on an uneven playing field, because the old products avoid their full cost.

Finding ways to make the market reflect true costs is essential if we are to find economically efficient solutions to the environmental costs of human economic activity. The foundation supports work in several key areas: tax reform, elimination of inappropriate subsidies, encouraging models that create economic incentives for development that advances environmental protection, and reforming international financial institutions.

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