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Symbiotic Demand

An Antithesis to the Tragedy of the Commons
by

Ag Resource Strategies, LLC

on 30 March 2016

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Transcript of Symbiotic Demand

Symbiotic Demand The antithesis to the
"Tragedy of the Commons" The "tragedy of the commons" concept was understood for centuries and made famous in modern times by Garrett Hardin's 1968 essay. Hardin described the commons using a pastoral setting with individuals exploiting the resources to meet their self-interests... ...and with the result of degraded resources for all. - tragic that negative and positive externalities are not accounted for within the economic system Why does this occur? milk
meat
leather
bonemeal soil erosion
sedimentation
soil degradation
biodiversity loss
increase run-off
production instability carbon sequestration
soil fertility
water storage
water filteration
biodiversity
production stability
habitat Positive Externalities Negative Externalities $0 Value $0 Cost $ Potential Profit Applying this to a worst case, but real scenario in today's agro-economy... The "tragedy of the economy" can be described as land management by an individual that passes ecological costs to many individuals and entities Symbiotic Demand can be realized by applying an EcoCommerce Framework that uses land management metrics as an ecological "Market Signal"... The "tragedy of the commons" is the "tragedy of the economy" So in today's agro-economy it functions like this: $0 Cost $0 Value Similar Profit Potential What is the economic conundrum for land managers? water pollution
soil degradation
loss of habitat
atmospheric balance Municipalities
Society
Nation
World The "tragedy of the economy" can also be described as land management that produces ecological value for many individuals and entities without associated compensation Soil Fertility
Clean Water
Habitat
Carbon/Nutrient Seq. Supply Chains/Webs
Municipalities/Utilities
Society
Climate Regulation Symbiotic Demand, as the antithesis of the "tragedy of the commons" is generated by: multiple entities compensating land managers for the multiple ecological benefits that they receive. Food Processors
Corporations
Utilities
Municipalities
State/Fed Govern
NGOs soil quality
water quality
air quality
habitat price # of Demanders With the unique and novel economic result of a decrease in the price and transaction costs of ecosystem services as the number of demanders increases Biomass Processors
Environmental Liability Ins.
Watershed District
State Government Certainty
TMDL Assurance
Bio-refiner
Forestry Certification This EcoCommerce framework was applied to five agro-ecocommerce projects in Minnesota USA since 2006, with each project revealing new ecomarket-enabling principles
Scalable Geo-intelligence - to create supply & demand forces
Ecoservice Portfolios - to organize metrics and values
Strategic Doing - to capitalize on human action
Shared Value - to identify common outputs
Shared Governance - a self-organization of participates based on their individual interests and profits Tim Gieseke
Ag Resource Strategies, LLC ...to create a "Board of Trade" http://www.agresourcestrategies.com These principles became the basis of
Symbiotic Demand... ...a means to apportion the costs and values of ecosystem services and natural capital valuation In other words, including positive externalities using many buyers Ecomarket-enabling principles market aspect

tgieseke@agresourcestrategies.com Application of the ecocommerce model is suited for watershed management, certainty frameworks, TMDLs, utilities' natural capital valuation and sustainable supply web accounting. value quantity buyers demands http://www.ecocommerce101.com/media.htm 20 Book reviews (from 8 industries/6 countries)- Symbiotic Demand works on the premise that many demanders can consume a portion of the whole (ecoservice) simultaneously Externalities exist because transaction costs are greater than the perceived and expressed values transaction costs are all ex-ante and ex-post costs associated with a trade -
- planning
-assessment
- exchange
- assurance
- monitoring
-liability
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