Full-cost Pricing: an Impractical Solution American Thinker The question of how to value the costs of so-called pollution and the benefits from ecosystem services has challenged researchers for some time, and the more work that is conducted, the…
“Over the past several years, we have seen a number of proposals put forward by environmentally active academics and think tanks calling for the implementation of concepts such as environmental policymaking with full-cost pricing, which includes policies and legislation that adjust market prices to reflect the direct costs of goods and services and their impact on so-called “natural capital” and ‘ecosystem services’….
“The concept of eliminating all externalities (be they positive or negative) within economic systems is desirable. However, it is not presently practical, and any intermediate system will be subject to substantial errors. The question of how to value the costs of so-called pollution and the benefits from ecosystem services has challenged researchers for some time, and the more work that is conducted, the more questions and uncertainties arise. We are farther from the answers we need than ever, and such is the paradox of science: the more you learn, the more you realize you do not know.”
Behind the idea of integrating Nature and Economics, is developing ‘full-price costings’ (i.e. the nature-based or environmental costings) in to economic, policy and governance decisions.
This review is a good reminder of all the things we do not know. And to be thinking we are indeed conducting ‘full-cost’ pricing when we’re not is clearly dangerous.
It’s a good reminder of the different things we have to get past to make this laudable goal a reality. But let’s not let the perfect get in the way of the good – in beginning to talk about these issues, solutions or otherwise, introduces important discussions nonetheless and each of these is step towards a better link between Nature and our Economy.
See on www.americanthinker.com