Markets and biodiversity loss: some case studies and policy considerations

Abstract

Resource use policy based on standard (neoclassical) economic theory is driven by the assumption that “getting the prices right” is the key to sustainable resource use. Although most neo‐classical economists now agree that market prices may substantially undervalue biological features, the prevailing view is that “correct” market prices can be established through enlightened intervention in private markets. Using the examples of the Atlantic bluefin tuna, the American bison, and the passenger pigeon, we show that neither very high nor very low prices can ensure the survival of a particular species. With these cases as background, we compare and contrast three policy approaches to sustainability: weak sustainability, strong sustainability and Georgescu‐Roegen’s concept of a viable technology.