Mother Nature's Sum by Matt Jenkins

For our December meetings we discussed "Mother Nature's Sum", a Miller-McCune article by Matt Jenkins. The article describes efforts by scientists to determine the economic value of ecosystem services, including benefits like pollination, carbon sequestration, water filtration, and so on. It also explores the debate over the very idea of "putting a price on nature", which some see as harmful and morally bankrupt.

While the article quotes some vehement critics of the idea, members of our discussion did not express such deep opposition to it. There was some questioning as to whether focusing on the economics of nature would take away from the idea of moral or intrinsic value of nature. Yet many felt having a dollar figure to point to is an important tool in planning and economic discussions. "You need a number," said one member. "If you go to the table without a valuation, you have nothing." It was generally accepted as a good tool to allow economists and environmentalists to communicate.

But the article also discussed the policy implications for valuing economic services, and focused a lot on the idea of payments for ecosystem services--essentially paying landowners NOT to do destructive things to their land. A few current examples were given, such as programs in the U.S. and other countries that pay farmers not to farm poor, erodible land or important wetlands. The article also mentioned the idea of coming up with some kind of cap and trade system for ecosystem services. This seemed a little muddier. How would that work and who would pay? We wondered why the author didn't talk more about taxes and fines based on ecosystems values, rather than just payments, which could easily be abused. We discussed when it might be appropriate policy to use payments, and when to use taxes and when to simply outlaw environmentally damaging behavior.

The article and the research it explored was interesting and provided a lot of food for thought. For follow-up reading, check out the Gund Institute for Ecological Economics headed by Robert Costanza, which was referred to in the article. I tried in vain to find a website for Mark Sagoff, one of environmental economics' strongest critics, but here's a sneak peek at one of his books: Price, Principle, and the Environment. Maybe we'll put this one on the list! Finally, for a local example of pricing the environment, check out the website for the Regional Greenhouse Gas Initiative, a cooperative carbon cap-and-trade program of which Rhode Island is a participant.

We hope you will join us in January to discuss the book The Sense of Wonder by Rachel Carson. See sidebar for schedule. Enjoy the holidays, and have a wonderful New Year!

Yours,

July Lewis