The Safe Minimum Standard of Conservation and Environmental Economics

Abstract

Critics within environmental economics argue that the mainstream paradigm is not sufficiently cautious to support sound decision making about the long-run future of environmental resources. Rather than basing choices on benefits and costs, these upstarts, beginning with Ciriacy-Wantrup* (1968), argue that decision-makers should consider imposing a safe minimum standard of conservation (hereafter the SMS). The SMS has intuitive appeal. Where loss or degradation of environmental resources could have large adverse economic consequences, safety-first makes common sense. The SMS continues to be discussed in the professional literature3 and has found its way into some textbook^.^ However, the SMS has not achieved wide acceptance among environmental economists.