Achieving Sustainability: Role of Economics

In some of the MN group meetings, especially the Metrics discussion, the question about the role of economics in addressing sustainability has been raised.

Arrow and Dasgupta have done a wonderful job is formulating metrics for some marketable goods like timber but metrics for sustainability for most non-marketable goods and ecosystem services that require sustainability have not been adequately addressed.

It is clear that formulating metrics for biodiversity or scenic beauty or even for fish populations is a very difficult task owing to the uncertainties in corresponding problems ('known unknowns and unknown unknowns').

Even if metrics for biodiversity or pristine wilderness are actually developed, it is debatable whether the use of economics or 'markets' is a valid approach to analyzing valuation for these goods whose worth to people is highly subjective and difficult to compare in terms of money.

A discussion on the role of economics in addressing sustainability would be helpful.