Environmental economics

Even after heavy snow and rainfall in January, western states still face an ongoing drought risk that is likely to grow worse thanks to climate change. A whopping snowpack is good news, but it doesn’t reduce the need for long-term planning. Confronted with a shrinking supply of water for agriculture, industry and residential uses, water agencies have pursued different strategies to encourage water conservation. They have nudged customers to reduce water use, limited outdoor watering and offered incentives to rip out lawns. On the supply side, there are innovative ideas about using heavy rains to recharge groundwater. Basic economics teaches us that a higher price for water would encourage conservation. Up until now, however, concerns about harming low-income households have limited discussions about raising water prices to reduce demand. We know that it’s hard to pay more for essential goods such as food, energy and water, especially for lower-income households. R...

Herman Daly had a flair for stating the obvious. When an economy creates more costs than benefits, he called it “uneconomic growth.” But you won’t find that conclusion in economics textbooks. Even suggesting that economic growth could cost more than it’s worth can be seen as economic heresy. The renegade economist, known as the father of ecological economics and a leading architect of sustainable development, died on Oct. 28, 2022, at the age of 84. He spent his career questioning an economics disconnected from an environmental footing and moral compass. In an age of climate chaos and economic crisis, his ideas that inspired a movement to live within our means are increasingly essential. The seeds of an ecological economist Herman Daly grew up in Beaumont, Texas, ground zero of the early 20th century oil boom. He witnessed the unprecedented growth and prosperity of the “gusher age” set against the poverty and deprivation that lingered...