Getting Prices Right vs. Getting Morals Right

One major justification of my work on the economic valuation of ecosystems is that we need to “get the prices right”. Economists think that factoring the value of ecosystem services into the prices of goods and services traded in markets is one important way of creating incentives to use these ecosystems sustainably. Opponents of the economic approach, however, fear the resulting “commodification of Nature”. Instead, the Douglas McCauleys and Mark Sagoffs of this world suggest that, instead of getting the prices right, we should attempt at getting morals right. In their view, this is the right approach to end the ongoing destruction of Nature, rather than the harmful valuation exercises conducted by economists. Continue reading