Professional Documents
Culture Documents
EnvEthics 17-18
EnvEthics 17-18
• Firms private costs are always less than the total social
cost involves.
• Pollution is fundamentally a problem of divergence
between private and social costs.
Justice
-pollution increases inequality
-Firm’s stockholders benefit but the social cost is
borne largely by poor (environmental injustice)
- Retributive Justice
- Compensatory Justice
Copyright © 2006 Pearson Education, Inc., publishing as Benjamin Cummings
Early environmental ethics
• Conventional
economics focuses
on interactions
between households
and businesses;
views the
environment only as
an external “factor
of production.”
Copyright © 2006 Pearson Education, Inc., publishing as Benjamin Cummings Costanza et al. 1997. Nature
Copyright © 2006 Pearson Education, Inc., publishing as Benjamin Cummings
Precepts of neoclassical economics
• Growth is good.
• Economic growth is required to keep employment high and maintain social
order (keep the working masses happy).