Posts Tagged ‘value’

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How Much is the Earth Worth? Putting a Price Tag on Nature’s Defenses

June 15, 2014

A group led by Dr. Robert Costanza has calculated the value of the world’s ecosystems…the group’s most recent estimate puts the yearly value at $142.7 trillion.

“I think this is a very important piece of science,” said Douglas J. McCauley of the University of California, Santa Barbara. That’s particularly high praise coming from Dr. McCauley, who has been a scathing critic of Dr. Costanza’s attempt to put price tags on ecosystem services.

“This paper reads to me like an annual financial report for Planet Earth,” Dr. McCauley said. “We learn whether the dollar value of Earth’s major assets have gone up or down.”

The group last calculated this value back in 1997 and it rose sharply over the past 17 years, even as those natural habitats are disappearing. Dr. Costanza and his colleagues estimate that the world’s reefs shrank from 240,000 square miles in 1997 to 108,000 in 2011.

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Read Full Article at the NYTimes

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Economics as a moral science

November 1, 2013

INGRID ROBEYNS: For a while I have been working on a paper on democracy, expert knowledge, and economics as a moral science. [The financial crisis plays a role in the motivation of the paper, but the arguments I’m advancing turn out to be only contingently related to the crisis]. One thing I argue is that, given its direct and indirect influence on policy making and for reasons of democratic accountability, economics should become much more aware of the values it (implicitly or explicitly) endorses. Those values are embedded in some of the basis concepts used but also in some of the assumptions in the theory-building.

The textbook example in the philosophy of economics literature to illustrate the insufficiently acknowledged value-ladenness of economics is the notion of Pareto efficiency, also known as ‘the Pareto criterion’. Yet time and time again (for me most recently two days ago at a seminar in Oxford) I encounter economists (scholars or students) who fail to see why endorsing Pareto efficiency is not value-neutral, or why there are good reasons why one would not endorse the Pareto-criterion. Here’s an example in print of a very influential economist: Gregory Mankiw.

In his infamous paper ‘Defending the One Percent’ Mankiw writes (p. 22):

“Discussion of inequality necessarily involves our social and political values, but if inequality also entails inefficiency, those normative judgements are more easily agreed upon. The Pareto-criterion is the clearest case: if we can make some people better off without making anyone worse off, who could possibly object?”

Continue at Out of the Crooked Timber HERE