AFM131 Lecture Notes - Lecture 2: Environmental Ethics, Contingent Valuation

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Ethic (respects to our land, ensuring stability and integrity) Land does not have economic value (in terms of money 13209$) because the value of land is subjective to everyone (how much someone values something cannot necessarily be measured in economic terms) We measure value to use land based on (rather than investments of cash): Skill (how much skill do we have and the land"s capacity for us) The biggest problem with implementing land ethics is our attitude. It fails because it does not consider the transformation value of new experiences. In environmental ethics, pluralism offers the hope of reconciling various rival theories, even if none of them is universally applicable. Economists want to be sensible, rational beings who base judgements on solid fact. Example: want to reduce the carbon pollution from industries. Contingent valuation (shadow pricing): is a technique economists use to count for those non- monetary losses (ex. reduction in wildlife specie)