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Chapter 2: Ethics, Economics, and Policy: Who or What Do We Value?

Introduction

• Environmental challenges such as the 2010 Deepwater Horizon oil spill raise several questions:

  • What is happening?

  • Who is affected?

  • Who is to blame?

  • What should be done about it?

  • How could it have been avoided?

  • How can we help?

• Ethical considerations influence our decisions based on notions of right and wrong.

• Economics allows us to trace environmental impacts through the production and consumption chain.

• Political institutions, through policy-making, also affect environmental outcomes.

2.1 How Does Ethics Influence Our Decisions?

1. Ethics and Moral Principles

   • Defines right and wrong, guiding behavior and decision-making in environmental contexts.

   • Formal ethical principles can encompass rules beyond individual interests in environmental decisions.

2. Duties and Rights

   • Deontological Ethics: Assesses right and wrong based on established rules.

     • Emphasizes the importance of duties (what ought to be upheld) and rights (what ought to be protected).

   • Intrinsic Value: Some things have value in and of themselves, independent of human benefits.

   • UN's Earth Charter (2000): Outlines duties for ecological protection and restoration.

     • Asserts that “every form of life has value regardless of its worth to human beings.”

     • Pillars: Respect for Life, Ecological Integrity, Justice, Democracy and Peace.

3. Utilitarianism

   • Defines right actions as those that yield the greatest good for the most people.

   • Assesses actions based on the balance of positive vs. negative consequences.

   • Complexities arise in identifying affected parties and defining good vs. bad consequences.

4. Who or What Do We Care About?

   • Ethical considerations include anthropocentrism (human-centered), biocentrism (life-centered), and ecocentrism (ecosystem-centered).

   • Anthropocentrism: Moral consideration is limited to people, including family, communities, and future generations.

   • Biocentrism: All living beings are valued intrinsically; animal rights focused on preventing harm to sentient beings.

   • Ecocentrism: Considers both living and nonliving components of ecosystems; Aldo Leopold's "land ethic" promotes a harmonious existence with nature.

2.2 How Are the Environment and Economy Connected?

1. Economic Exchange

   • Raw materials are procured through transactions impacting production, distribution, and consumption.

   • Economic systems influence the environment in both positive and negative modalities.

2. Supply and Demand

   • Fundamental economic relationship where supply (availability) and demand (willingness to pay) dictate market conditions.

   • Markets are systems that facilitate exchanges, influenced by government policies.

3. Government and Markets

   • Adam Smith's "invisible hand" philosophy suggests optimal market operation occurs with minimal interference.

   • Market disruptions can occur due to disasters or shortages, necessitating governmental intervention.

   • Different economies exhibit varying levels of government involvement:

     • Market economies (e.g., USA) vs. command economies (e.g., North Korea).

4. Scarcity and Innovation

   • Scarcity of resources drives innovation (e.g., development of efficient technologies).

   • Efficiency gains can lead to increased consumption, exemplified by Jevons Paradox.

2.3 How Can Economics Help Us Understand Environmental Problems?

1. Externalities: Economic interactions often overlook true costs of goods/services (e.g., pollution).

2. Negative Externalities

   • Costs not reflected in market prices (e.g., true cost of coal factoring health and environmental impacts).

   • Government measures, like regulations and taxes, aim to mitigate negative externalities.

3. Tragedy of the Commons

   • Overexploitation of shared resources occurs without regulations, leading to degradation.

   • Solutions include government interventions, local management agreements, and penalties against violators.

4. Positive Externalities

   • Benefits provided by functioning ecosystems often under-represented in markets.

   • Public goods (parks, clean air) typically require government intervention for provision and funding.

5. Valuing Nature

   • Economists assess the value of ecosystem services despite challenges in quantifying non-market aspects.

2.4 Why Do We Have Environmental Policy?

1. Impacts of Government Policy

   • Policies set regulations affecting safety, trade, and the environment.

2. Defining Policy

   • Authoritative decisions that guide societal behavior towards common goals (e.g., environmental protection).

   • Influential policies established during the 1960s and 1970s helped shape environmental regulations.

3. Politics and Policy Making

   • The process involves navigating competing interests and lobbying efforts.

   • The policy process includes problem identification, crafting, approval, implementation, and evaluation.

4. Environmental Policy in the United States

   • Major policies established since the 1960s address natural resource management and pollution controls (e.g., Clean Air Act).

   • Creation of agencies like the EPA to enforce regulations and manage environmental standards.

5. State and Local Policies

   • States and local governments play significant roles in environmental regulation, often enacting stricter standards than federal ones.

6. Global Environmental Politics

   • International cooperation is essential to manage transnational environmental issues.

   • Organizations like the UN facilitate collaborative efforts among nations; however, reaching consensus can be challenging.

2.5 What Can I Do?

1. Utilizing Economic Power

   • Everyday choices can collectively yield significant environmental impacts (e.g., supporting eco-friendly businesses).

2. Influencing Public Policy

   • Participate in political processes; vote for aligned candidates and contribute to campaigns.

3. Engaging with Elected Officials

   • Communicate with representatives through letters, calls, and community meetings to express environmental concerns.