Valuation in Ecological Economics - Is There and Should There Be a Common Ground ?

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Valuation in Ecological Economics - Is There and
Should There Be a Common Ground ?

• Murray Patterson
• New Zealand Centre for Ecological Economics
• ANZSEE Conference, 2005

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ROADMAP

• Back to ISEE Conference (2000) in Canberra
• Epistemological Approaches to Valuation
• Characterisation of Valuation Methods Used
  Ecological Economics

• Assessment Criteria
• Range of Methods
• Profile Matrix

• Conclusions

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What my paper actually said
One of the emergent methodological themes in the
Ecological Economics literature is the need for
methodological pluralism and openness. There is a
danger that the proposed biophysical theory of
value can be seen as reductionistic and
foreclosing other methodological options. A
monolithic approach based on a single theory of
value is not being proposed. Source Patterson
(1998, 2000)

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Response to my paper and those of others
There were, however, still a range of
unprogressive papers reiterating narrow valuation
perspectives (both economic and energy based)
which seem to have failed to catch up with the
concepts of plurality and incommensurability.
Source Canberra Conference Raises Host of
Issues Lead Article from the European Society of
Ecological Economics Issue 10 (2000)
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Epistemological Approaches 1

• Reductionism
• Understand parts rather than the whole
• Phenomenon reducible to fundamental laws
• Certainty, Predictability
• Single numeraire in value theory

• Valuation Method Examples in Ecological
  Economics
• Neoclassical Valuation, reducing everything to
• Emergy Analysis, reducing everything to emjoules

• Holism
• Attempts to understand the whole or the big
  picture
• Emergent properties
• Uncertainty, unpredictability more common
• Guiding principles rather than laws

• Valuation Method Examples in Ecological
  Economics
• Deliberative methods

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Epistemological Approaches 2

• Methodological Monism
• Logical Positivism (usually)
• One theoretical construct
• May or may not be reductionistic eg. General
  systems theory is monistic

• Valuation Method Examples in Ecological
  Economics
• Advocacy for one over-aching method
• Multi-criteria Evaluation Framework
• Participatory Approach

• Methodological Pluralism
• Many Truths
• Respect for different views is necessary
• Respect for different methods, including
  reductionistic methods
• Tension/ Conflict is Healthy
• Dialogue Skills Required
• Positive Respect for Diversity

• Valuation Method Examples in Ecological
  Economics
• Maybe, Special Edition of Ecological Economics
  (2002)

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Criteria 1 Reflects the Endeavour of Ecological
Economics
Ecological Economics
Neoclassical Economics

Source Sahu Nayak (1994)
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Criteria 2 Coverage of Type of Value
(anthropocentric)
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Criteria 2 Coverage of Type of Value
(non-anthropocentric)
(non-anthropocentric)
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Criteria 3 Inclusive of All Groups/Democracy

• Move beyond 1 one vote
• Move beyond individual to group valuation
• Procedural fairness

• Negotiated/ mediated group values
• More flexible, open approach
• Future generations
• Other species (interspecies equity)

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Criteria 4 Practicalities
Ease of Operationalisation

• Cost
• Data
• Easy Methodology

Political Acceptance

• Does it fit the ideological framework of
  government?

Consumer Resonance
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Range of Valuation Methods in Ecological Economics
Neoclassical Methods
Contingent Valuation Hedonic Pricing Avoided
Cost Replacement cost Travel Cost Factor Income
Group Based Methods
Citizen Based Juries Consensus Conferences Focus
Groups Deliberative CV
Other Anthropocentric Methods
Conjoint Analysis Choice Modelling Multi-Criteria
Analysis
Biophysical Methods
Ecological Pricing Emergy Analysis
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Conclusion

• Is there common ground?
• No

• Should there be common ground?

• No
• However, agreement on broad principles and
  common ground for dialogue is required.

• No one valuation method will do the complete
  job. (Refer to the last Table.)

• What method/s to use, depends on the context.
  Even Reductionistic and Neoclassical methods have
  their place.

• Lack of methods for directly measuring ecological
  and intrinsic values. (Refer to the last Table.)