Meaning: The quote by environmentalist Paul Hawken emphasizes the importance of intelligent policies in driving the shift towards clean and sustainable systems of cost and production. Hawken's assertion that such policies will be largely self-regulating indicates that the incentives and standards set in place will naturally guide businesses and individuals towards embracing environmentally friendly practices. This concept aligns with the principles of sustainable development, which seek to balance economic growth with environmental protection and social equity.

In essence, intelligent policies are designed to create an environment where it becomes economically and socially irrational for businesses and individuals not to adopt clean, internalized systems of cost and production. The term "internalized systems of cost" refers to the concept of internalizing externalities, wherein the true costs of production, including environmental and social impacts, are accounted for within the economic framework. This approach contrasts with traditional economic models that often externalize environmental and social costs, leading to unsustainable practices and negative effects on the planet and society.

The idea of self-regulation within intelligent policies implies that the mechanisms put in place, such as incentives and standards, will naturally drive the desired behavior without the need for excessive external enforcement. By creating a framework where sustainable choices are not only encouraged but also economically advantageous, businesses and individuals are motivated to proactively embrace clean and environmentally responsible practices.

Hawken's quote underscores the need for systemic change in the way we approach production and consumption. It acknowledges that simply expecting individuals and businesses to voluntarily prioritize sustainability without the appropriate incentives and standards in place is unrealistic. Instead, it advocates for the proactive design of policies that align economic interests with environmental and social goals, thereby steering the system towards sustainable outcomes.

One example of an intelligent policy that aligns with Hawken's vision is the implementation of carbon pricing mechanisms. By putting a price on carbon emissions, such policies internalize the environmental costs associated with greenhouse gas pollution. This creates a financial incentive for businesses to reduce their carbon footprint, invest in clean technologies, and transition towards low-carbon operations. In this way, the policy itself serves as a self-regulating mechanism, driving the economy towards cleaner and more sustainable practices.

Another aspect of intelligent policies involves setting clear standards and regulations that push industries and businesses to adopt cleaner technologies and practices. By establishing stringent environmental standards and promoting eco-labeling initiatives, policymakers can influence consumer behavior and drive market demand towards sustainable products and services.

Furthermore, intelligent policies often include support for research and development in green technologies, as well as investments in renewable energy infrastructure. By fostering innovation and providing financial support for sustainable initiatives, governments can accelerate the transition towards clean and internalized systems of production.

It is important to note that the concept of intelligent policies extends beyond the realm of government intervention. Businesses, as key players in the economy, also have a crucial role to play in driving the transition towards sustainability. Through initiatives such as corporate social responsibility (CSR), businesses can voluntarily adopt environmentally friendly practices and integrate sustainability into their core strategies.

In conclusion, Paul Hawken's quote encapsulates the notion that intelligent policies, characterized by the alignment of economic incentives and environmental goals, have the potential to drive self-regulating shifts towards clean and internalized systems of cost and production. By integrating sustainability into the economic framework and creating a conducive environment for responsible behavior, such policies can pave the way for a more sustainable and equitable future. The concept underscores the interconnectedness of economic, environmental, and social factors, emphasizing the need for holistic and forward-thinking approaches to policy-making and business practices.