Markets, resources, environments

Abstract

This paper argues that markets are commonly not appropriate mechanisms to resolve environmental disputes: much of the problem is to determine the effects rather than to allocate them; when the rate of discount of the future is positive, the social need is different from the sum of rational individual decisions; and markets ignore equity. Furthermore, the limits on sustainability seem to be quantitative rather than qualitative - to rest on the magnitude of resource discovery, or on the rate of improvement of environmental quality per dollar invested for example. Again, the central question concerns the data rather than a means of allocating costs and benefits. These difficulties in using mark..