On Economic Valuation and Sick Mothers

I have spent most time this week at the Fourth International Conference on Degrowth for Ecological Sustainability and Social Equity, which takes place in Leipzig. In one of the sessions today, my doctoral father had the pleasure(?) to defend the economic (valuation) approach to environmental problems in a panel discussion. Most arguments used in this discussion against the economic approach were, I say it frankly, nonsense. Either they resulted from misunderstanding or from confusion or they just didn’t have anything to do with the issue. The only two valid arguments I was able to filter out were: a) that economists often treat ecosystems atomistically in that they value single ecosystem services and then just “add them up”, which is a practice I am very concerned about, too, and b) that the economic approach hasn’t achieved anything so far (which is debatable, but still a valid critique, as there is no systematic assessment of this issue to be checked against). Today, however, I would like to respond to one of the misconception-based arguments, for I think that it shows in an impressive way what economics is (not) and why we need economic analysis. Continue reading

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A Question of Balance

“It’s a question of balance.” I guess, this might be the most often-used phrase on this blog. Today, again, I would like to write about an important balancing act that is not easy to achieve. Particularly so, as we have to achieve it (almost) everyday. It is the balance between being satisfied, on the one hand, and not being satisfied, on the other. Continue reading

What’s So Good About Biodiversity?

Sometimes, there are books you wish you wouldn’t have read. Mostly, these are bad books. Recently, I read a quite good book that I nevertheless first wished had escaped my attention. It’s Donald S. Maier’s What’s So Good About Biodiversity: A Call for Better Reasoning About Nature’s Value. It’s shaken up my view of why biodiversity is valuable (although not as much as initially thought). As I had to think a lot about Maier’s provocative and very polemic argumentation, for it has posed a challenge to the core of my PhD thesis, I would like to attempt a “self-therapeutic” review of his book’s first part, in which he attacks the status of biodiversity as carrier of nature’s value (I haven’t yet read his exposition of an own account why nature is valuable). Continue reading

Is Economic Valuation a “Neoliberal Road to Ruin”? A Response to George Monbiot

George Monbiot is actually an environmental journalist I esteem highly. But I do not agree with his aggressive criticism of what he calls a “neoliberal road to ruin”, which I would prefer calling economic valuation of environmental goods and services [the linked article is a transcript of Monbiot’s talk, which you can see below]. While he does make important points, I see his criticism as mistaken in many respects. In what follows, I would like to respond to some of the points he made. Continue reading

In Defence of Anthropocentrism

In the environmental debate, economics is oftentimes criticised for being explicitly anthropocentric, which means, among other things, that it ignores any intrinsic values non-human entities might have. The last time I wrote about this subject, I defended an anthropocentric perspective for rather pragmatic reasons. This time, I would like to offer an ethical defence of it. Continue reading

Ecosystem Services or The Downsides of Choosing the Wrong Namesake

Just a few days ago I published a post in which, among other things, I criticised economists for using the term “value of a statistical life”, as it begs to be misinterpreted and opens up space for criticism that is actually based on misconception. Today, I realised that often I must deal with a similar issue in my own research field. “Ecosystem services”, while arguably originally an eye-opening metaphor, seen from today’s perspective was a badly chosen term. It invites criticisms of the approach that are at odds with its essence, but are suggested by its name. Continue reading

The Economic Value of a Statistical Life

A human life is worth $4 million to $9 million. At least according to an authoritative meta-analysis of economic studies that estimate the so-called “value of a statistical life”. This is one of the most controversial issues in modern economics, which has met with vast criticism. Particularly, it has been argued that one cannot attach a price-tag to the life of a human being. In what follows, I would like to argue that a) this criticism is largely based on a misconception of the estimates; b) economists can only blame themselves that the misconception actually arised; and c) the calculation of the value of a statistical life is not sensible, albeit for reasons different from the ethical ones that are commonly used to argue against it. Continue reading