#negative externalities

[periaptgames]

The accelerator effect

Economists are building a huge financial instrument beneath the Swiss banks to see what happens when negative externalities collide with positive externalities at relativistic speeds

[hennethgalad]

Move to sustainable food systems could bring $10tn benefits a year, study finds

Existing production destroys more value than it creates due to medical and environmental costs, researchers say

"at the London School of Economics, welcomed the study: “The economics of today’s food system are, sadly, broken beyond repair. Its so-called ‘hidden costs’ are harming our health and degrading our planet, while also worsening global inequalities. Changing the ways we produce and consume food will be critical to tackling climate change, protecting biodiversity, and building a better future. It is time for radical change.”"

"broken beyond repair"

those "hidden costs" have become obvious…

[hennethgalad]

wtf i thought it was cgi

reality gets weirder

anyway, it’s all going straight to landfill isn’t it?

reduce reuse recycle!

[hennethgalad]

Tackle ever-growing consumption to safeguard sustainability gains

The world is consuming more efficiently, but still using more stuff. More-concerted efforts to change both consumer and producer behaviour a

"The idea is to transform the ‘linear’ economy (take, make, waste) into one in which materials are reused or recycled, avoiding the creation of waste and limiting the use of raw materials. The idea is simple, attractive — and fiendishly difficult to implement."

[hennethgalad]

so the vegan tuna is £4.07, the real fish is £0.30

the real cost is life in the oceans. that’s not measured by the rulers of the world, that’s an 'externality'. economics is therefore not concerned with reality but only with fantasies. unlimited growth…

[hennethgalad]

"Money is probably the most powerful tool ever invented by humans, but the way we account for its use is leading us to destruction. By steadfastly refusing to acknowledge the environmental cost of our activities and by treating the future as less valuable than today, we have built a complex economic system whose primary incentive is to destroy the living world.

The old way of doing things may have been practical when the human population was small, but it is not appropriate for today’s population and level of technological development. Rather than continue to argue about how we should share money (fossil fuel companies or renewable energy, meat farmers or vegetable growers), a deep reset of what constitutes profit would give us the chance to overhaul the economy so that it rewards activities that nourish the future. Then, maybe humanity will have one.

Harold Forbes

Wareham, Dorset"

[conza]

Negative Externalities

Why should social costs be minimized? Or, why should externalities be internalized? The answers are scarcely self-evident, and yet the questions have never been satisfactorily addressed, let alone answered. And there is an important corollary question: even given the goal of minimizing costs, for the sake of argument, should this goal be held as an absolute or should it be subordinated, and to what degree, to other goals? And what reasons can be given for any answer?

In the first place, to say that social costs should be minimized, or that external costs should be internalized, is not a technical or a value-free position. The very intrusion of the word should, the very leap to a policy position, necessarily converts this into an ethical stand, which requires, at the very least, an ethical justification.

And second, even if, for the sake of argument, we consent to a goal of minimized social costs, the economist still must wrestle with the problem: how absolute should this commitment be? To say that minimized social costs must be absolute, or at least the highest-valued goal, is to fall into the same position that the cost-benefit economists scorn when it is taken by ethicists: namely, to consider equity or rights heedless of cost-benefit analysis. And what is their justification for such absolutism?

Third, even if we ignore these two problems, there is the grave fallacy in the very concept of "social cost," or of cost as applied to more than one person. For one thing, if ends clash, and one man's product is another man's detriment, costs cannot be added up across these individuals. 

But second, and more deeply, costs, as Austrians have pointed out for a century, are subjective to the individual, and therefore can neither be measured quantitatively nor, a fortiori, can they be added or compared among individuals. 

But if costs, like utilities, are subjective, nonadditive, and noncomparable, then of course any concept of social costs, including transaction costs, becomes meaningless. 

And third, even within each individual, costs are not objective or observable by any external observer. For an individual's cost is subjective and ephemeral; it appears only ex ante, at the moment before the individual makes a decision. The cost of any individual's choice is his subjective estimate of the value ranking of the highest value foregone from making his choice. 

For each individual tries, in every choice, to pursue his highest-ranking end; he foregoes or sacrifices the other, lower-ranking, ends that he could have satisfied with the resources available. His cost is his second-highest ranking end, that is, the value of the highest ranking end that he has foregone to achieve a still more highly valued goal. The cost that he incurs in this decision, then, is only ex ante; as soon as his decision is made and the choice is exercised and his resource committed, the cost disappears. It becomes an historical cost, forever bygone. 

And since it is impossible for any external observer to explore, at a later date, or even at the same time, the internal mental processes of the actor, it is impossible for this observer to determine, even in principle, what the cost of any decision may have been.”

          — Murray Rothbard, The Myth of Efficiency

[tabitha1917]