Economics Theory and Methodology

Is economics the perfect tool for environmental problems? We, humans, are ones of inhabitants on the Earth, and in that point, we are indifferent from other animals and organisms in the planet. It means that the environment is essential for our living and survival. Nevertheless, we have relished fruits of economic development at the expense of environment; the environment has been encroached to by human beings. Because of the pursuance based on the limitless greed, we have overpassed the environment's assimilation capacity, and environmental problems have come to the fore at the end of the 1900s as is exemplified by the sensational report of Limit of the Growth published by the Rome Club. Then, even worse, we are subject to the revenge of the Gaia, at the brink of the catastrophe such as climate change nowadays. Economics is a discipline which reflects individual preference, what we like or dislike, as a price tag on a good in order to pursue efficient allocation of scarce resources. It is based on a branch of moral philosophy called utilitarianism, and pursues the efficiency in monetary terms; the decision whose net benefit is the highest is the best. Economics is widely used as the main tool to policy analysis and the formulation, and there is even philosophy called economism in which economics replaces other decision criteria such as ethics and sociology. The tidal wave might be natural seemingly since we are surrounded by money and prices, and we cannot eschew to encounter and be independent from them. In line with that, mainstream economists applied economics to environmental decision making, and one of the domains, environmental economics, was established. The study field tackle environmental problems by economics, and it may appear that economics is silver bullet for environmental problems because of the aspiration to pursue efficient allocation of resources, in which the environment is surly included. However, it may be questionable that economics is enshrined as the only tool, the panacea, to tackle environmental problems. The reason is that the economics is anthropocentric, and only economic sustainability is the scope in contrast to environmental studies or ecology focusing on environmental sustainability. The origin of words economy and ecology is same: the study for a base. In fact, it is highlighted that they are essential factors for sustainable development. Nonetheless, the wedge is driven between them. Thus, we have to reconsider the way to achieve the collaboration between them, and cross fertilization may be caused if they harmonize to enhance sustainability of the world. Thus, this book was motivated to step into a discussion on economics as a steppingstone of the collaboration: what is it and the limitation, and how does it tackle environmental problems. I hope I can diversify and develop the discussion on a relation between economics and environment among each and every individual in the world as a citizen, and I believe that this book will be resourceful a first step to bridge economics and environment, and contribute to achieve sustainable development in the world. See more