Ethics, economics and environmental management

Abstract

Individuals derive utility from their access to resources provided by the biosphere, through the satisfaction of a number of needs and necessities. These needs, however, cannot often be met simultaneously since they compete with each other. This conflict is not just relevant at an individual or even intragenerational level. Indeed, it implies a number of uncertainties and irreversibilities into the future, which should not be left to oblivion. From an extended anthropocentric ethical position, in which only human beings have immanent value and are, therefore, subjects of moral consideration, the identification of economic values can be of great use to allocate resources and make decisions on the environment. Economic analysis provides a number of decision tools than can be used to optimise efficiency and equity. The purpose of this paper is to reflect on some of the ethical constraints to the ability of conventional economic valuation techniques to inform decision-making processes affecting the environment. It will be argued that, depending on the stage of development, some environmental and natural assets might well be seen as a common heritage, either from a natural or a cultural viewpoint, rather than just a pool of economic resources that could be used to satisfy basic needs, and depleted or transformed accordingly, whether directly or indirectly. Furthermore, this boundary is not static: the same environmental asset will be demanded as a resource at lower stages of development (both individual and socially), and as a part of the common heritage, at a later stage (again, individual and socially). In the former, the use of conventional methods to value environmental goods and services will be warranted, whereas this would not be the case in the latter. We will also stress upon the fact that this is something quite different from the approach taken in Social Project Appraisal, where the introduction of efficiency prices and distributive factors also provides a move from individual to social welfare maximization, but without breaking away from the market logic.