“External costs pose the biggest threat to the environment by preventing nature and the economy from working together. External costs occur when a third party must pick up the tab for the negative consequences of a transaction. A transaction that occurs every day is a good example: let’s say I buy gasoline, burn it in my car, and harm people who inhale the exhaust fumes or whose climate is altered by greenhouse gases generated. The people who are injured did not purchase and burn the gas—I did. Yet I do not pay for the harm done.” — Geoffrey Heal
This week, our featured book is Endangered Economies: How the Neglect of Nature Threatens Our Prosperity, by Geoffrey Heal. To start off the week’s feature, we are happy to present an excerpt from the book’s first chapter, in which Heal explains why there’s no real conflict in trying to save the environment and improve the economy.
Don’t forget to enter our book giveaway for a chance to win a free copy of Endangered Economies!