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The term environmental credit crunch refers to a crisis (which may be economic in origin) which exposes humanity's inability to indefinitely consume finite natural resources in order to sustain economic activity and a standard of living. [1] The term is often juxtaposed with the financial credit crunch of 2008.
The term was used twice in 2008. [2] [3]
The most detailed examination of the environmental credit crunch and its interaction with the financial credit crunch occurs in “From Red to Green? How the financial credit crunch could bankrupt the environment” by Donovan and Hudson. This argues that the financial credit crunch will have both positive and negative consequences for the simultaneous environmental credit crunch. As a result, policy makers need to be more flexible in their responses to both credit problems. [1]