PHIL224 Lecture Notes - Lecture 3: Lexicographic Preferences, Pareto Efficiency, Economic Efficiency
18 Mar 2016
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Freeman"s the ethical basis of the economic view of the environment summary. When economicists recommend environmental policies, there are always great distrust towards them (eg. economists: place a tax on emissions of pollutants; environmentalists: this would create licenses to pollute ) The economic problem of the environment is a small part of the overall economic problem: how to manage our aciviies so as to meet our material needs and wants in the face of scarcity. Assume that everyone can idenify their likes and dislikes and the intensity of their preferences. Furthermore, these preferences are not lexicographic and there is no limit on wants. Example: bag a: 2 apples and 2 oranges = bag b: 1 apple and 3 oranges. If the subsituion principle applies to good things that are derived from a clean environment, then it is possible to put a price on those things.
