Econometrics Allow Us to Value What is Truly Priceless

            Greetings, readers! We continue our discussion of valuation in Environmental Economics.

            Economists have developed several methods to value nonmarket goods, like clean air and water. These include “direct use value—the value derived from the direct use and exploitation of the environmental good, the ecological value—defined by the benefits that environmental goods provide to support forms of life and biodiversity, and the option value—related to future use opportunities of the good. Non-use values are composed of the existence value—the value that individuals give to environmental goods for their mere existence—and the bequest value—the value estimated by individuals when considering the use of goods in the future by their heirs” (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7178272/).

Taking clean water as the example, we calculate the value of water by totaling all of its many forms of value, including the value of all agricultural, manufacturing, construction, and utilities output as these industries require the direct use of water to function. In 2021, California’s manufacturing sector generated $397.26 billion, its agricultural sector generated $41.96 billion, its construction sector $90.57 billion, and its utilities sector $35.28 billion (https://www.statista.com/statistics/304869/california-real-gdp-by-industry/).

But truly, when we consider that fact that ALL economic output is generated by humans, all of which are water-based life-forms, it becomes clear that water is the most valuable resource on Earth, sustaining life itself primarily and our complex economic system secondarily. The true value of water is astronomical, incalculable. Even recognizing that salty ocean water is not suitable for human consumption, we can still value the habitat, or perhaps value the $253 billion global sea food market (https://www.statista.com/statistics/821023/global-seafood-market-value/). Everything the planet provides for us is valuable and although the dollar is a crude metric, it is one we all understand.

Similarly, we might calculate the benefit of clean air by comparing it to the saved heath care costs associated with reduced instances of asthma, heart disease, premature mortality, and other cardiovascular health complications. A 30-year analysis drafted in 2011 indicates that the benefits of the Clean Air Act (i.e. the Cross-State Air Pollution Rule, the Utility Mercury and Air Toxics Rule, the Industrial Boiler Rule, and the Cement Kiln Rule) will result in $612 billion in direct benefits as saved health care costs as well as indirect benefits such as increased worker productivity and environmental benefits like improved visibility and increased agricultural output (https://www.edf.org/sites/default/files/saving-lives-and-reducing-health-care-nov2011.pdf).

A brief health-related aside: particulate matter from fossil fuel combustion and wildfires can lodge itself deep into our lungs and arteries, even reaching our bloodstreams (https://www.health.ny.gov/environmental/indoors/air/pmq_a.htm). Heck, apparently, we even have microplastics polluting our veins (https://www.smithsonianmag.com/smart-news/microplastics-detected-in-human-blood-180979826/). As a reminder, plastic is a petroleum product, another symptom of our addiction to fossil fuels. We consume fossil fuels faster than nature can regenerate them, and we produce plastic waste faster than nature can break it down and recycle it.

When we poison the environment, we poison ourselves. For our immediate health and for our long-term climatic viability, we simply must harness forms of energy that are not dependent upon combustion. Our planet is far too valuable for us to keep spoiling and igniting it.

“Anything else you’re interested in is not going to happen if you can’t breathe the air and drink the water. Don’t sit this one out. Do something. You are by accident of fate alive at an absolutely critical moment in the history of our planet.” – Carl Sagan.

Anyone at any point can choose to protect and cherish our beautiful blue marble, our speck of dust in space. Our existence is in and of itself a miracle more precious than currency can consider.

Defining Sustainability

            Greetings, readers! Let’s talk about the term “sustainability”. I’ve touched upon it before as the phrase is ubiquitous in the field, but today, we deep-dive!

            The U.N. defines sustainability as, “Meeting the needs of the present without compromising the ability of future generations to meet their own needs.” https://www.un.org/en/academic-impact/sustainability. These needs refer to our ability to feed, water, clothe, and shelter ourselves, all of which are contingent upon the resources and ecosystem services that are provided by our natural habitats.

            Now, what precisely do I mean by “ecosystem services”? Well, think back to the Salmon and Grizzly Glaciers. Those flowing rivers of ice gave us FREE water storage and allowed water to slowly melt throughout the summertime, feeding our creeks and rivers. Now we have no glaciers remaining in the Alps, and will likely not receive enough snow in the future to rebuild them in our lifetimes. Another example is wetlands, whose hydrophytic plants are able to filter and clean our water. Thanks, Nature! We couldn’t live here without you!

            Simply put, we are consuming materials (i.e. clean water and fertile soil) faster than they can be regenerated by nature, and we are polluting and defiling our water, air, and soil with noxious chemicals (fossil fuels, pesticides, cleaners, microfibers, etc.) faster than nature can filter and dilute them. A new phrase has popped up with respect to this overconsumption and pollution: Earth Overshoot Day, which refers to when humanity has exhausted Earth’s budget of resources and services (https://www.footprintnetwork.org/our-work/earth-overshoot-day/). In 2021, Earth Overshoot Day fell on July 29th, meaning that in just 7 months, we consumed all the water, soil, nutrients, and energy Earth was able to generate and then moved into the red, racking up a huge ecological deficit while pumping billions of tons of CO2 into the atmosphere.

            It is worth mentioning, yet again, that nearly all of the lifeforms presently living on Earth are adapted to live within a very narrow range of temperatures, humans included. Hyperthermia (overheating, heat exhaustion, heat stroke) is a very real threat today and will become an increasingly common problem in the future. Remember the heat dome in June last year? A billion sea creatures died off the coast of Vancouver (https://www.scientificamerican.com/article/pacific-northwest-heat-wave-killed-more-than-1-billion-sea-creatures/). In my personal opinion, 106 degrees Fahrenheit is too hot for comfortable human habitation. South Asia has already had temperatures soar past 120 degrees Fahrenheit this year! (https://www.carbonbrief.org/media-reaction-south-asias-2022-heatwave-and-the-role-of-climate-change). It breaks my heart that we are roasting our planet and ourselves. Children and the elderly are especially vulnerable to heat.

            I’ve not written this column for even a year yet, but the backlash has been persistent, dogged, devoid of facts and figures, instead replaced with personal insults, targeted public threats of violence, and attempts to get me fired at my job. Yep, three separate men tried to cancel me this past year! They were unsuccessful, but I was still shaken.

Sometimes I fear for my safety. Writing this column honestly might not be sustainable. Human civilization is tumultuous and chaotic. People have been shot for far less than challenging those who maintain the status quo, who hold power and choose to enable dangerous actions and actors. Verbally striking back at those who threaten and commit violence can get one killed.

I’ve been accused of hating America and nothing could be further from the truth. I believe we have many problems to solve, but generally my days are peaceful. I love America so much that I want us to heal, thrive and flourish forever. I want future generations to have enough clean water, air, and nourishing food to meet their needs. More than anything, I love the First Amendment freedom of speech, knowing that we will destroy ourselves if lies, threats, and abuse remain unchallenged.

If you’re reading this and you’re angrier at ME than at our collective lack of care for all we presently have, I implore you to readjust your moral compass and priorities.

Protect our children and grandchildren, our planet, and our future.

Please.

We should all be on the same team: Team Life on Earth.