Abstract

Is there a relation between the increasing extension of markets and market norms to previously non-market goods, and the growth of environmental problems? This chapter explores two competing answers: market-endorsing positions that argue that a source of environmental problems lies in the absence of markets in environmental goods and that the extension of markets or market modes of valuation to environmental goods offers the most effective way of protecting them; market-skeptical positions that deny that the extension of markets will protect environmental goods or more strongly that markets and increasing marketization are themselves a source of environmental problems. These positions offer distinct perspectives on market mimicking instruments in environmental policy making, such as cost-benefit analysis, and on the development of new markets, for example in emission rights and biodiversity offsets. The issues raised include questions about value commensurability, justice, epistemic limits to planning and markets, and environmental limits to growth.