This has caused environmental and resource economists to develop a series of methods to calculate the value of protecting and conserving the environment. One of the best examples of the practical significance of such assessments is the crucial role they played in calculating the compensation that Exxon had to pay following the Exxon Valdez oil spill in Alaska in 1989.
The quantification and monetization of things that do not have market value can provide a reference when calculating compensation payments. The result of having such assessments is that they provide concrete data upon which concerned parties can negotiate on a moral and rational basis.
Now that countries around the world have replaced their traditional economic development measures with “green national income,” it is time that we started to look at how well the value of environmental destruction, resource conservation and sustainable practices can be incorporated in developmental thinking. We cannot remain stuck in the endless struggle between the moral call for protecting environmental resources and developing the economy to improve living standards.
Wu Pei-ing is a professor in the department of agricultural economics at National Taiwan University.
TRANSLATED BY DREW CAMERON
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