Cost-benefit analysis makes the assumption that everything from consumer goods to endangered species may in principle be given a value by which its worth can be compared with that of anything else, even though the actual measurement of such value may be difficult in practice. The assumption is shown to fail, even in simple cases, and the analysis to be incapable of taking into account the transformative value of new experiences. Several kinds of value are identified, by no means all (...) commensurable with one another – a situation with which both economics and contemporary ethical theory must come to terms. A radical moral pluralism is recommended as in no way incompatible with the requirements of rationality, which allows that the business of living decently involves many kinds of principles and various sorts of responsibilities. In environmental ethics, pluralism offers the hope of reconciling various rival theories, even if none of them is universally applicable. (shrink)

The concept of preference dominates economic theory today. It performs a triple duty for economists, grounding their theories of individual behavior, welfare, and rationality. Microeconomic theory assumes that individuals act so as to maximize their utility – that is, to maximize the degree to which their preferences are satisfied. Welfare economics defines individual welfare in terms of preference satisfaction or utility, and social welfare as a function of individual preferences. Finally, economists assume that the rational act is the act that (...) maximally satisfies an individual's preferences. The habit of framing problems in terms of the concept of preference is now so entrenched that economists rarely entertain alternatives. (shrink)

Existence Value has become an increasingly important concept as the use of cost benefit analysis has spread from traditional applications to attempts to place monetary value on, for instance, a rare wetland habitat. Environmental economists have generally accepted the tensions arising in the existence value concept from the range of recent applications, but it is argued here that their various attempts to resolve the difficulties have largely failed. Critics from outside economics, on the other hand, typically claim that the very (...) notion of existence value as understood in economics is flawed, and urge its abandonment altogether. This paper suggests instead a fundamental redefinition of existence value, which, it is argued, (i) explains a number of diverse problems posed by the usual meaning of the term in economics; (ii) does not strain the intentions of respondents to ' willingness-to-pay' surveys; (iii) is consistent with a more realistic model of rational choice in environmental decision-making; and (iv) is sensitive to criticisms from environmental ethics.2. (shrink)