"Natural Capitalism: Creating the Next Industrial Revolution" is a book about environmental economics written in 1999 by Paul Hawken, Amory Lovins, and Hunter Lovins. The book has been translated into twelve languages and was discussed in a summary by Harvard Business Review.

Content

In Natural Capitalism, the authors explain that the global economy relies on natural resources and ecosystem services provided by nature. They criticize traditional "Industrial Capitalism," stating that this system does not follow its own accounting rules. It treats its capital as income and ignores the value of natural resources, living systems, and social and cultural systems that support human capital.

Natural Capitalism highlights the important connection between human-made capital (like tools and buildings) and natural capital (like clean air and water). The authors argue that businesses and people can only continue to thrive if they recognize the relationship between human activities and Earth's resources.

The book raises important questions about how an economy could function based on realistic business principles and how such a system might become a reality. The authors believe this change is possible and could lead to a new industrial revolution that benefits society.

According to the authors, this revolution depends on four key strategies: using resources more efficiently in manufacturing, reusing materials like natural systems do, shifting focus from quantity to quality, and investing in natural capital by restoring and protecting resources.

Unlike traditional industrial capitalism, which mainly values money and goods as capital, Natural Capitalism also values natural capital and human capital. Issues like pollution and social inequality are seen as results of failing to properly account for all types of capital, not as flaws in capitalism itself.

The main ideas of Natural Capitalism include:

• The main limit to future economic growth is the availability and health of natural capital, especially services like clean air and water that have no substitutes and are not currently valued in the market.
• Poorly designed businesses, population growth, and wasteful habits are the main causes of losing natural capital. These issues must all be addressed for a sustainable economy.
• Future economic progress is best achieved through democratic, market-based systems that fully value all types of capital, including human, manufactured, financial, and natural.
• Using resources more efficiently is key to making the best use of people, money, and the environment.
• People's well-being is improved by delivering better quality services, not just increasing the total amount of money spent.
• Economic and environmental sustainability requires fixing global inequalities in income and access to resources.

Meaning of book's title

In a 2009 interview, Paul Hawken explained the reason for choosing the title Natural Capitalism. He said the title was meant to be a play on words, or a pun, on the term "natural capital," which was first used by E. F. Schumacher in 1973. Hawken supported the idea of natural capital and its importance for society, so he added the suffix "-ism" to the word to create a double meaning.

However, many readers misunderstood the title. Some believed the word "Capitalism" was the main focus, thinking the authors were supporting the system of capitalism. Hawken later said he was sorry for the confusion. He clarified that while he respects the values of business and starting new ventures, he does not support the harmful aspects of pure capitalism.

Other editions

• Zi4 ran2 zi1 ben3 lun4, Chinese (simplified characters) edition of Natural Capitalism (2000, Shanghai Popular Science Press) ISBN 7-5427-1846-0
• Capitalismo naturale (2001, Edizione Ambiente, Milano), ISBN 88-86412-80-0
• Japanese edition of Natural Capitalism (2001, Nikkei, Tokyo) ISBN 4-532-14871-5
• Chinese (complex characters) edition of Natural Capitalism (2002, CommonWealth, Taipei) ISBN 957-0395-61-3
• Öko-Kapitalismus: Die industrielle Revolution des 21. Jahrhunderts (2002, Riemann, München) ISBN 978-1-4000-3941-8
• Loodus-kapitalism: uue tööstusrevolutionsiooni algus (2003 [Estonian]) ISBN 9985-62-131-X
• Capitalismo Natural (Editora Cultrix, São Paulo), ISBN 85-316-0644-6
• Natural Capitalism: Comment réconcilier économie et environnement (2008, Scali, Paris) ISBN 978-2-35012-221-2
• Korean edition of Natural Capitalism (~2011, Gongjon, Seoul)