Lovins And Hawkins Concept Of Natural Capitalism

Natural capitalism, as described by Lovins and Hawkin, is a new and improved principal for capitalism. It is their belief that capitalism cannot be considered as such unless natural capitalism is considered. To achieve natural capitalism there are a set of requirements that need to be considered. The first being, the environment is an essential factor of production and as such and must be considered when deliberating on things such as prices of goods. The second requirement that is raised is that the leading limiting factor of production is natural capital. Due to the scarcity of resources, economies must be able to produce the most output from the least amount of input. In addition, businesses should also be able to incorporate flexibility into their corporate approach by being able to adapt to natural capitalism and by being able to produce and grow in a manner that is efficient and sustainable. Lovins and Hawkins believe that to compete with the loss of natural capital there are four …show more content…
The first concept they introduced is radical resource productivity. Radical resource productivity entails finding an efficient method to get the same number of products while using less in the amount of input. Lovins and Hawkins believe that given the technology that is available we can work more with natural resources. The second concept that they raised was Biomimicry. Biomimicry is the idea that we the consumers act as if our natural resources are infinite in their amount and as a result our standard of living includes careless use of resources. The lack of gravity given to natural resources is enabled by the cheap prices set which in turn encourages countries and companies to purchase more. Lovins and Hawkins believe that the prices for natural resources are too low given that we don’t have an infinite amount of resources and instead propose that we should use the technology to imitate some of nature’s