The concluding chapter brings together the main themes and messages of the book. Chapter 10 argues that the economics for a “fragile planet” is about ensuring that our economies can attain a “safe,” as opposed to “catastrophic” or “uncertain” Anthropocene. To be successful, such a transition must transform our markets, institutions and governance to reduce human impacts on the biosphere; mitigate environmental risks in an inclusive and sustainable manner; and decouple wealth creation and economic prosperity from environmental degradation. Above all, we must end the underpricing of nature so that our institutions, incentives and innovations reflect the growing ecological and natural resource scarcity that our current economic use of the environment has created. Taking this first step is essential to developing an economics for an increasingly fragile planet.

Land use change has transformed ecosystem pattern and process across most of the terrestrial biosphere, a global change that could be potentially catastrophic for both humankind and the environment. Chapter 5 explores how this threat is related to the underpricing of natural landscape in all economies, and how addressing this critical problem is essential to creating the incentives, institutions and innovations needed to change humankind’s relationship with nature. The underpricing of natural landscape also perpetuates rural poverty, and the impacts of land use change are borne increasingly by the poor. Decoupling development from excessive land use change leading to ecosystem decline is necessary to make our economies both more sustainable and inclusive. Global biodiversity conservation is also plagued by underfunding, as the international community struggles to compensate developing countries for protecting valuable terrestrial habitats. Collective action will require commitments not only by rich countries to assist poorer ones in protection and restoration efforts but also by the private sector to invest in nature to reduce the risks from biodiversity and ecosystem loss.

Chapter 8 elaborates further on the public policies needed for “greening” economic activity and promoting better stewardship of the environment. The focus is primarily on strategies that governments might adopt to achieve economy-wide green transformation for more efficient, sustainable and inclusive development. The chapter explores what these short- and long-term policy efforts will look like, providing examples from both major economies and low- and middle-income countries. At the center is ending the underpricing of nature to unleash the economic potential of green developments for generating economy-wide innovation and prosperity, and more equitable income and wealth distribution.

The need to curb human activities threatening critical Earth system processes, resources and sinks is an important starting point for thinking how best to manage our planet in an efficient, sustainable and inclusive manner. Chapter 3 explains how this can form the basis for an “economics for a fragile planet.” This perspective began with Kenneth Boulding in the 1960s, who argued that the Earth is ultimately finite, and thus, transition to a “spaceship economy” that respects such limits is unavoidable. The implications are that the exploitation of Earth’s sources of natural resources and sinks for pollution is not limitless, and that it is essential to end the underpricing of nature that currently ignores the rising costs associated with ecological scarcity and environmental degradation. This requires in turn rethinking the markets, institutions and governance needed for a green and inclusive economic transformation. The overall objective should be to manage an economy’s overall stock of physical, human and natural capital to sustain per capita human welfare while limiting global environmental risks.

Chapter 9 examines the evidence of growing adoption and initiatives by corporations, businesses and the financial system to incorporate actions to mitigate environmental risks and improve the global environment, and look in particular at the possibility of private sector action to move toward better environmental stewardship. Firms increasingly find that improved environmental performance reduces their overall cost of capital and their attractiveness to potential investors. However, better environmental scarcity and risk management by firms requires a range of complementary policies for green financing and investment; ending the underpricing of nature; and taxing major biosphere exploiters. Corporations that are willing to become biosphere stewards should also collaborate with governments in collective action to address global environmental risks.