lec 3 - Social choice: How much environmental protection?...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Social choice: How much environmental protection? Ariel Singerman September 30, 2010 What is the right balance between environmental protection and use? There is no unanimity within society about the best course of action When we make decisions about protecting the environment societal decisions s Affects large group of people s Variety of opinion How can we decide what action is socially desirable? Need to translate individual preferences regarding the environment into societal choice some individuals will be pleased and other disappointed It will be important to distinguish between: A) Philosophical views of role of environment in human existence B) Methods for making societal decisions about regulations that have environmental consequences Social Choice from Individual values The Utility Function Society consists of N individuals ( i = 1, , N) Each individual consumes one market good and an environmental good (e.g.: environmental quality) X i represents consumption of market good of individual i So we allow different individuals to consume different amounts of X Instead, consumption of the environmental good e is the same for everyone So, individual i utility function is U i (x i ,e) the societal consumption bundle that represents the N values of consumption market good for N individuals and level of env. good is given by a = (x 1 , ,x N , e) Individual preferences regarding environmental protection There are a variety of perspectives (individual preferences) on what is right regarding environmental protection The following ethical perspectives illustrate different beliefs: 1. Biocentrism : places the biological world at the center of its value system 2. Anthropocentrism : asserts that the environment is there to serve for the purpose of providing material gratification to humans 3. Sustainability : proposes the use of the environment for human needs only to the extent that the LR health of the environment is not jeopardized Above figure illustrates the set of indifference curves for an individual who values e more and more as consumption of x increases. Note that along U 1 e must increase substantially to offset a loss of x. Along U 4 a small increase in e offsets a substantial loss of x Voting as a Social Choice Mechanism Suppose there are 2 bundles of private good and environmental good: a' = (x 1 , ,x N , e) and a = (x 1 , ,x N , e) Each individual i has preferences in term of U...
View Full Document

Page1 / 13

lec 3 - Social choice: How much environmental protection?...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online