Publisher : Elsevier Science B.V.
Place of publication :
Publication year : 2002
Thematic : Ecological Economics
Language : English
Note
This paper discusses the potential for modeling nature and man in an exchange economy. We will firstly be outlining the need for exchange values in addition to the usual human evaluation of nature. Secondly, we will be reviewing some basic exchange economy ideas, arguing that these ideas can be adopted to a mutually beneficial exchange between humans and nature. Thirdly, in a formal model, we will show how the assumption that a ‘civic society’ can be adapted to a principal agent approach, whereby humans are the principal and nature is the agent. Issues such as property rights-an objective concerning nature-and services to be exchanged will be introduced. This will include the derivation of a behavioral equation for nature as anticipated by humans. Fourthly, a principal-agent framework delivers a mutually beneficial exchange; such as land for labor, and given property rights. Derived genuine exchange values are interpreted as relative prices reflecting ‘human and natural objectives’. Fifthly, the aforementioned problem will be extended to a world with undefined property rights, and hints will be given to how this world can be modeled. Potential applications, conflicting questions, such as human welfare versus fitness of nature, and the distribution of rights will be discussed.
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Keywords : Ailuroedus buccoides
Encoded by : Mae Belen Llanza
