Utility Maximization as a Solution

Abstract

The distinction between economic and environmental values is, in part, the result of a historical accident in which economics separated itself from its roots in utilitarianism. Much of economics now concerns itself with what is priced easily, so it leaves out much of the value of natural resources. We can solve this problem by replacing monetary value, as the summary measure of what we seek, with the older concept of utility, or good, in the analysis of policy. Utility can include both that of natural resources and that of the goods we buy and sell. This change of approach has two problems, both potentially solvable. One is the difficulty of distinguishing people's good from their political aims. The second is the public resistance to utilitarian thinking, which will persist even if the first problem is solved, and which may require cultural change to overcome.