Skip to main content
Top
Published in:

2023 | OriginalPaper | Chapter

1. Introduction

Author : Stefan Brunnhuber

Published in: Financing our Anthropocene

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

In this introductory chapter, we attempt to identify some of the main characteristics of the new era we are all living in now. For the first time in human history, over seven billion people are synchronised and mentally prepared for change. But we are not really changing yet. One reason for this lack of change is that we have failed to identify the right intermediaries, the links that can incentivise and coordinate us all as we chart a course into a better future. And the monetary system is one such intermediary.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Footnotes
1
Other potential crises include asteroid impacts, mass migration waves, nuclear war, terrorist attacks or failed state scenarios.
 
2
Earth Overshoot Day 2021 was on 29 July. From 30 July onwards, we were depleting the ecosystems of our planet. However, we can reverse that trend. Reforesting 350 million hectares would give us eight days; reducing 50% of the CO2 load in the atmosphere 93 days; using more efficient technology (both cutting-edge and well-established) globally 21 days; reducing meat consumption by 50% 17 days; reducing food waste by 50% 17 days; increasing public transportation and cutting car mileage by a third another 13 days; and cutting the birth rate by one child for every other family 49 days. It looks like it would not be an impossible mission to remain within our planetary boundaries. Instead of depleting the planet. we should avoid misaligned incentives and create a financial framework where everybody has ‘skin in the game’. See https://​www.​overshootday.​org/​solutions/​.
 
3
The idea of mental preparedness for change comes from clinical research on addiction. Motivational psychology has shown that a multistage approach can be used to achieve behavioural changes. This includes support for self-efficacy and control, developing an ambivalence between the status quo and the desired outcome and reflective listening. The first step, however, requires mental preparedness for change. And this is the stage we are all at right now. We are ready for change, but we are not yet changing. See Rollnick and Miller (1995).
 
4
For example, the current pandemic has caused the UN Human Development Index to fall back by over ten years. That means we are globally ten years behind the pre-pandemic level of human development. In some countries, an additional 14% of GDP is necessary to catch up with the SDGs. We also have to add long-term scarring effects (lockdown, lost years of education) on top of this, which comes to another 1–2% of GDP in some less developed countries.
 
5
Neuroscience has further clarified this connection in the ‘explore and exploit’ hypothesis. In order to set in motion purposeful adjustments and behavioural changes, a discrepancy between the inner picture, narrative or frame and the outside world is necessary. As long as nothing changes in the outside world, there will be no discrepancy between inside and outside and no change in behaviour. Things are different if circumstances change and the inner picture (the world model) no longer has sufficient predictive power. The world model loses its ‘predictive coding’. The discrepancy leads to a reorientation, which in turn leads to a new, unstable flow equilibrium. Developmental psychology has found that from the age of 11 months children compare hypotheses that they generate in their brains with the outside world. If the hypotheses don’t match, they must be corrected. According to the ‘explore or exploit’ hypothesis, as long as the inner picture reflects the outer world, humans will simply repeat themselves over and over again (‘exploit’). The situation changes dramatically if there is a discrepancy between inside and outside. Now ‘exploit’ no longer helps and we must switch to ‘explore’: curiosity, trying out new things, creativity, adaptation and learning. This is known as creative adaptation, and is what we are attempting to encourage in this book. See Gomez-Ramirez and Costa (2017), Gopnik and Meltzoff (2000), Friston (2012) and Friston et al. (2012).
 
Literature
go back to reference Bhaskar, R., et al. (2015). Metatheory for the twenty-first century: Critical realism and integral theory in dialogue. Routledge.CrossRef Bhaskar, R., et al. (2015). Metatheory for the twenty-first century: Critical realism and integral theory in dialogue. Routledge.CrossRef
go back to reference Boulding, K. (1966). The economics of the coming spaceship earth. In H. Jarrett (Ed.), Environmental quality in a growing economy (pp. 3–14). Resources for the Future/Johns Hopkins University Press. Boulding, K. (1966). The economics of the coming spaceship earth. In H. Jarrett (Ed.), Environmental quality in a growing economy (pp. 3–14). Resources for the Future/Johns Hopkins University Press.
go back to reference Chen, D. B. (2018). Central banks and blockchains: The case for managing climate risk with a positive carbon price. In A. Marke (Ed.), Transforming climate finance and green investment with blockchains (pp. 201–216). Academic Press.CrossRef Chen, D. B. (2018). Central banks and blockchains: The case for managing climate risk with a positive carbon price. In A. Marke (Ed.), Transforming climate finance and green investment with blockchains (pp. 201–216). Academic Press.CrossRef
go back to reference Chen, D. B., van der Beek, J., & Cloud, J. (2017). Climate mitigation policy as a system solution: Addressing the risk cost of carbon. Journal of Sustainable Finance & Investment, 7(3), 233–274.CrossRef Chen, D. B., van der Beek, J., & Cloud, J. (2017). Climate mitigation policy as a system solution: Addressing the risk cost of carbon. Journal of Sustainable Finance & Investment, 7(3), 233–274.CrossRef
go back to reference Crutzen, P. J., & Stoermer, E. F. (2000). The Anthropocene. Global Change Newsletter, 41, 17–18. Crutzen, P. J., & Stoermer, E. F. (2000). The Anthropocene. Global Change Newsletter, 41, 17–18.
go back to reference Friston, K., Thornton, C., & Clark, A. (2012). Free-energy minimization and the dark-room problem. Frontiers in Psychology, 3, 130.CrossRef Friston, K., Thornton, C., & Clark, A. (2012). Free-energy minimization and the dark-room problem. Frontiers in Psychology, 3, 130.CrossRef
go back to reference Gomez-Ramirez, J., & Costa, T. (2017). Boredom begets creativity: A solution to the exploitation–exploration trade-off in predictive coding. Biosystems, 162, 168–176.CrossRef Gomez-Ramirez, J., & Costa, T. (2017). Boredom begets creativity: A solution to the exploitation–exploration trade-off in predictive coding. Biosystems, 162, 168–176.CrossRef
go back to reference Gopnik, A., & Meltzoff, A. N. (2000). The scientist in the crib: What early learning tells us about the mind. William Morrow. Gopnik, A., & Meltzoff, A. N. (2000). The scientist in the crib: What early learning tells us about the mind. William Morrow.
go back to reference Hertwig, R., & Grüne-Yanoff, T. (2017). Nudging and boosting: Steering or empowering good decisions. Perspectives on Psychological Science, 12(6), 973–986.CrossRef Hertwig, R., & Grüne-Yanoff, T. (2017). Nudging and boosting: Steering or empowering good decisions. Perspectives on Psychological Science, 12(6), 973–986.CrossRef
go back to reference McDonough, W., & Braungart, M. (2002). Cradle to cradle: Remaking the way we make things. North Point Press. McDonough, W., & Braungart, M. (2002). Cradle to cradle: Remaking the way we make things. North Point Press.
go back to reference Miller, M. E., & Cook-Greuter, S. (2000). Creativity, spirituality and transcendence: Paths to integrity and wisdom in the mature self. Ablex. Miller, M. E., & Cook-Greuter, S. (2000). Creativity, spirituality and transcendence: Paths to integrity and wisdom in the mature self. Ablex.
go back to reference Otto, I. M., et al. (2020). Social tipping dynamics for stabilizing earth’s climate by 2050. Proceedings of the National Academy of Sciences, 117(5), 2354–2365.CrossRef Otto, I. M., et al. (2020). Social tipping dynamics for stabilizing earth’s climate by 2050. Proceedings of the National Academy of Sciences, 117(5), 2354–2365.CrossRef
go back to reference Stern, N. (2016). Economics: Current climate models are grossly misleading. Nature, 530(7591), 407–409.CrossRef Stern, N. (2016). Economics: Current climate models are grossly misleading. Nature, 530(7591), 407–409.CrossRef
go back to reference Taleb, N. N. (2007). The Black Swan: The impact of the highly improbable. Random House. Taleb, N. N. (2007). The Black Swan: The impact of the highly improbable. Random House.
Metadata
Title
Introduction
Author
Stefan Brunnhuber
Copyright Year
2023
DOI
https://doi.org/10.1007/978-3-031-23285-5_1

Premium Partner