Commentary

Environmental Econ, Austrian Style

Economics buffs will love this offering from Roy Cordato of the Ludwig von Mises Institute: An Austrian Theory of Environmental Economics.

Austrian economics lacks a formalized, self-conscious theory of environmental economics. But in fact all of the major elements of such a theory already exist and in that sense what is needed is to piece together the relevant aspects of Austrian economics in order to draw out and focus a theory that is already there. The purpose of this paper is to do just that. In developing an Austrian theory of environmental economics, very little new theoretical ground will be plowed. But by bringing together Austrian concepts of costs and the praxeological foundations of economics we discover a unique perspective on pollution and the role of property rights in solving environmental problems. Furthermore by placing environmental problems withinthe context of personal and interpersonal plan formulation, we discover that they are not about the environment per se but about the resolution of human conflict.

Full article here. And check out the related discussion in the Mises Economics Blog. (hat tip: The Commons)