Valuing the Environment for Decisionmaking: In Dealing with Complex Environmental Issues, Determining the Value of Multiple Environmental Attributes Is Problematic, but Not Doing So Is Even More So

Article excerpt

Making thoughtful decisions about environmental challenges that involve wide-ranging and potentially irreversible consequences is of profound importance for current and future human well-being. How much and how fast should greenhouse gas emissions be reduced to minimize global climate change? What standards should be set for air and water quality? What should be done to protect biodiversity and to maintain ecological processes? Addressing such questions involves weighing benefits and costs in multiple dimensions. In spite of the high stakes, however, the nation--its government and society--often fails to take systematic account of the environmental consequences in its actual decisionmaking and instead follows standard operating procedures or existing legislative mandates, or simply muddles through.

Virtually all important environmental management and policy decisions have a wide range of effects. For example, zoning or development decisions about land use can have a variety of environmental impacts (for example, on local water and air quality, the potential for flooding downstream, carbon sequestration, and habitat for wildlife) as well as economic and social effects (on economic development, jobs, and income). Similarly, decisions on limits on emissions of air pollutants or greenhouse gases can affect a range of environmental, economic, and social concerns. These results affect multiple groups who often have very different views about desired outcomes (for example, developers versus environmentalists). Effects differ across geography (upstream versus downstream) and time (current versus future impacts). Choosing among management or policy options that differ in terms of environmental, economic, and social outcomes with spatial and temporal components may at first glance seem overwhelmingly complex, with dimensions that seem incomparable. Good environmental management and policy decisionmaking, however, necessitates systematic evaluation and consideration of the effects of management and policy on the affected public. Even though the quantitative valuation of these effects will never be perfect, the outcome of attempts to assess value provides important information to help guide decisionmaking.

Decisions, decisions

Management and policy decisions typically involve difficult tradeoffs that bring improvements in some dimensions and declines in others. Ultimately, deciding whether to choose management or policy alternative A or B requires an evaluation of whether A or B is "better," where better is determined by the objectives of the decisionmaker. It is easy to conclude that one alternative is better than another if it is better in all dimensions. But making comparisons in which one alternative is better in some dimensions but worse in others requires making difficult value judgments. For example, clearing land for housing development may result in higher incomes and more jobs but reduce habitat for species and worsen local water quality. Whether land clearing is the right decision will depend on whether an increase in incomes and jobs is valued more highly than maintaining habitat and water quality. But how can one really compare income versus habitat for species or jobs versus water quality? Comparing across these different dimensions seems like comparing the proverbial apples and oranges. Reaching an environmental management or policy decision, though, requires the decisionmaker to compare apples and oranges, either explicitly or implicitly.

For an individual, deciding which college to attend, where to live, or what job to take is often a hard choice to make, in large part because it involves changes in multiple dimensions simultaneously. Moving to a new job in a new city may be a better professional opportunity and offer a new set of cultural amenities, but is it worth disrupting family life, moving away from friends, and making adjustments to a new community? Though it is difficult to compare such alternatives, people do make these decisions all the time. …