Environmental Planning, Economic Planning and Political Economy

Abstract

Environmental economics involve techniques for monetary valuations of environmental resources. But environmental problems raise fundamental questions of social, political and environmental organization. This article mirrors in economics the `cross-over' of Left and Right suggested by Giddens. Positive economics leads to notions of planning, not to laissez-faire and makes evident Habermas's view of the `scientization' of politics. Positive economics contains an implicit political theory of technocracy. Economics cannot conceive of social resources, and views environmental resources as externalities. It attempts to obtain money valuations for non-traded resources. Essentially, this is a planning supplement to markets and it is unclear how both markets and planning supplement can be justified simultaneously. Environmental questions are also ethical. We act as citizens in considering them. They are less suited to markets than to a public forum which requires justification in terms of the collective welfare and involves a process of dialogue between citizens.