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PLEASE PASS THIS ON!
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Excellent Comment Included:
<ezeflyer August 21st, 2008 6:19 pm
"The Endangered Species Act is unfortunately just one example of increasing
pressure to change our nation's most significant environmental laws in ways
that benefit developers and property owners at the expense of the public at
large."
Incorporate We the People and make the developers do business with our
corporation instead of with our bribed representatives.>

I would add:  <...at the expense of the public at large> and all the living
things and non-human animals on the planet.

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Source/Letters:   CommonDreams <editor @ commondreams.org> (close spaces)
Link:  <http://www.commondreams.org/archive/2008/08/21>

Published on Thursday, August 21, 2008 by CommonDreams.org

Endangered Species Act Redux
 by Kristen A. Sheeran

Once again the Bush administration has set its sights on the Endangered
Species Act (ESA).

Rather than challenge this hallmark of environmental legislation outright,
the Administration's preferred method of attack is executive rule change.
The ESA is responsible for savings hundreds of species from extinction over
its 30 year history, including the iconic bald eagle. This latest change,
which doesn't require the approval of Congress, mirrors similar attempts in
2003 and 2005 to weaken ESA's effectiveness by reducing mandatory,
independent scientific reviews of the impacts of new projects on endangered
species and their habitats. Under current laws, experts with Fish and
Wildlife Services and National Marine Services evaluate projects for their
potential impacts, recommend necessary accommodations, and determine if more
extensive formal analysis is warranted. Under the new rules, federal
agencies will be able to decide for themselves whether their projects
endanger the 1,353 animals and plants currently protected by the ESA. The
consequences of shifting review from government scientists to the federal
agencies that will benefit from building mines, dams, and roadways in
critical habitats are clear. As environmental groups have rightly surmised,
the foxes now guard the chicken coops.
Of course this is not the first time that conservative forces have succeeded
in dismantling effective environmental legislation. But progressives should
not dismiss this latest attempt as merely par for the course for a lame-duck
administration that has long boasted of its contempt for environmental
protection. The rigor with which conservatives have attacked the ESA over
the years testifies to its symbolism in the ideological battle that is
raging over environmental policy and over questions of equity and
distribution of resources more generally. This battle began long before the
current Bush administration and it remains to be seen what side the next
administration - even if it is a democratic administration - will take.

Conservatives loathe the ESA for fundamental reasons: it affirms the
government's right to regulate private property for the betterment of the
public good, it acknowledges the inherent value of species beyond their
direct use-value to humans, and it prescribes a precautionary approach to
environmental management in situations of potential irreparable harms. The
ESA prohibits the use of cost-benefit analysis in determining which species
to protect and what restrictions should be placed on the habitats that
support them, while conservatives want to subject increasingly more
environmental and health and safety regulations to cost-benefit analysis as
part of their strategy for undermining regulatory efforts. Finally,
conservatives despise the ESA because it actually works and it is widely
popular with voters.

The demise of the ESA would signify the end of an era in environmental
policy, one in which government regulation plays a necessary role in
correcting the inefficiencies of the marketplace. The controversy
surrounding the ESA reflects a discernible shift in the discourse over
environmental policy - a shift that is rooted in economic interpretations of
the causes of, and solutions to, environmental problems. Environmental
economics began with Alfred Pigou's early twentieth century analysis of
externalities and market failure. As Pigou noted, the inability of markets
to account for the costs of economic activities on parties external to the
market exchange leads to market prices that are not reflective of the full
social costs of production and consumption, and quantities that do not
maximize welfare for society as a whole. The traditional policy solution to
externalities, aptly named 'Pigouvian taxes", entails correcting market
prices by setting a tax on the polluting activity equivalent to the value of
its social harm.

Many have rightly noted that Pigou's analysis over-simplifies the problem.
His analysis of a single externality implied that environmental damages
occur one at a time, and that they are rare enough to allow the creation of
individual taxes to address each one. The complexity of real world
environmental problems, which often involve multiple interacting health and
environmental damages, challenge this narrow vision of environmental policy
aimed at "getting the prices right" and then letting markets work their
magic. Nevertheless, Pigou's analysis defined economists' understanding of
environmental problems and their solutions for most of the twentieth
century.

By the end of the twentieth century, however, new trends in environmental
policy emerged. First, more and more market-oriented policy instruments such
as tradable pollution allowances emerged as alternatives to government
"command-and-control" style regulation. This market-based critique of
command-and-control regulation originally advocated for Pigouvian taxes and
tradable allowances as equivalent mechanisms for correcting market failures;
now it more frequently rejects taxes in favor of tradable emissions
allowances. Not so coincidentally, one difference between tradable
allowances over taxes is that it is easier to obscure who pays for the costs
of environmental damage. It has become common practice for polluting
industries to receive almost all of their allowances for free - our gift to
the industries that have profited from harming us. Pigouvian taxes, in
contrast, embody the principle that the "polluter pays" for societal harms.
Market-based policies can play a useful role in reducing the costs of
environmental protection, and can in principle be reconciled with equity
concerns, but in recent years the adoption of market-based policies has
disguised a further redistribution of resources in favor of corporate
polluters.

As a sign of the times, however, an even more conservative analysis of
environmental problems now permeates the debate over environmental policy.
Often referred to as "New Environmentalism" or "Free Market
Environmentalism" after Terry Anderson and Donald Leal's seminal book of the
same name, this movement argues that Pigouvian taxes and regulation might be
unnecessary, as polluters and their victims can engage in private
negotiation to determine the appropriate compensation. This movement
provides the theoretical justification for moving environmental and resource
management out of the public realm and into the hands of private entities
and their profit dictates. This movement typically rejects environmental
regulation as poorly designed, inflexible, costly, and subject to capture by
special interests. According to this view, markets "fail" when property
rights are ill-defined, and the solution lies in clarifying property rights
and letting the profit incentive protect people and nature.

The policy prescriptions which flow from free market environmentalism mark a
serious departure from how environmental policy has evolved over the last 35
years. First, it prescribes a minimal role for government. Government is
unnecessary beyond the initial assignment of property rights, and the issue
of who is assigned the property right is shrugged-off as irrelevant. Second,
it advocates privatizing the natural commons: the air we breathe, the water
we drink, our planet's biodiversity, our natural parks and scenic areas.
Once privately owned, access to these resources and amenities would be made
available only to those willing and able to afford them; limiting access
would allow owners to profit from their resources and would provide them
with the incentives to manage their resources "sustainably".

It is the "free market environmentalism" mindset that has posed the most
serious challenges to ESA.

It is only appropriate, then, to use wildlife protection as an instructive
example for evaluating free market environmentalism. Under current laws,
landowners control access to their land, but the state regulates the taking
of wildlife on the land. If that land is habitat for a threatened or
endangered species, the private landowner's ability to develop that land is
severely limited. This decrease in the landowners property value amount to a
"takings" by the government for which the landowner is not presently
compensated. Without compensation, the presence of wildlife on private land,
particularly if it is endangered wildlife, is seen as a liability, not an
asset. Economists of all stripes have long recognized this weakness of the
ESA - it is too much stick, not enough carrot. Upon discovering endangered
wildlife on their property, landowners allegedly adopt a "shoot, shovel, and
shut-up" strategy since the penalties for damaging that species' habitat
once it is discovered are so severe. While evidence for this strategy
appears to be mostly anecdotal, its revelatory of the antagonism between
private property owners and government wildlife agencies.

Free market environmentalism contends that private provision of wildlife is
a more effective approach to wildlife management. Private owners retain
control over their land and the plants and animals that live on it. If
owners can restrict access to their land to only those recreationists who
are willing to pay to hunt, fish, or wildlife watch, owners will profit from
their wildlife and will have an incentive to protect, improve, and expand
their habitat.

The re-introduction of wolves to Yellowstone National Park is hailed as one
of the great conservation stories of the last 35 years. Free market
environmentalists view it as validation of their approach to wildlife
management. Wolves were exterminated in the lower 48 states back in the
early part of last century. (It's worth noting that this extermination was
carried out at public expense for the private benefit of ranchers. The
public never demanded compensation from the private landowners who benefited
from the public expenditure) Until very recently, wolves were protected in
the lower 48 states by the ESA. In the mid 1990s, the U.S. Fish and Wildlife
service decided to re-introduce wolves to Yellowstone, citing the slow pace
of natural recovery efforts and the ecological value of restoring an apex
predator to the Yellowstone ecosystem. Not surprisingly, the re-introduction
was strongly opposed by ranchers in the area, fearing for their loss of
livestock should the wolves stray from park boundaries. The opposition posed
a serious obstacle to re-introduction efforts, until the Defenders of
Wildlife (DOW), a non-profit environmental organization, established a
private fund to compensate ranchers for any documented loss of their
livestock to wolves. Ranchers reluctantly agreed to this program, and the
howl of wolves can once again be heard throughout Yellowstone valley.

Free market environmentalists have applauded this strategy as one that
successfully merged the interests of both ranchers and environmentalists.
Indeed, it is hard to criticize the success of the re-introduction efforts
and the positive role monetary incentives may have played in removing
political opposition to the program. Free market environmentalists would
like us to believe that the program can be replicated in other areas where
large predator re-introductions have been proposed (e.g. grizzly bears in
Washington State). But it remains unlikely that this program can be
replicated on a scale large enough to satisfy our needs and demands for
wildlife protection.

The DOW financed this program through private donation. The publicity
surrounding this program and public support for wolves was so great that DOW
was able to raise the necessary funds. But as more of these programs are
proposed, and if they grow to involve species of plants and animals that
most Americans aren't particularly aware of or fond of, it is likely that
donations to these programs will wane. A solution of this sort might work to
protect signature species like bears, wolves, and eagles, or the species
that recreationists like to hunt or fish. It will not provide adequate
protection for the hundreds of federally listed threatened or endangered
plant and animal species for which the public knows little about and has
little direct use for. These species - which are of important ecological
value - are currently protected, however imperfectly, by the ESA.

In truth, it is inaccurate to view the wolf re-introduction program as a
form of free market environmentalism. The research, execution, and
monitoring costs for this program were all paid for by U.S. Fish and
Wildlife Service, using funds from the ESA. Wolves could never have been
successfully re-introduced, had Yellowstone National Park not existed to
provide adequate safe habitat. Though monetary incentives financed through
private donations may have helped guaranteed the success of this program,
government was critical in every other stage of the process. At best, this
is an example of the value of private-public partnerships. It is not an
example of free market environmentalism. Indeed, very few examples exist of
pure free market solutions to environmental problems.

The Endangered Species Act is unfortunately just one example of increasing
pressure to change our nation's most significant environmental laws in ways
that benefit developers and property owners at the expense of the public at
large. Increasingly, the mainstream environmental economics perspective has
been labeled as environmental extremism. Its policy recommendations are
dismissed as market distorting, rather than what they are - market
correcting. This is particularly bad news for those of us who tend to view
mainstream environmental economics as too narrow and modest in its approach
to sustainability. But rather than spend our energies pushing the envelope
on economic thinking on the environment in new and progressive ways, we've
been forced to retreat to defend what's long been established.

 
Kristen is executive director of E3 Network, and an Associate Professor of
Economics at St. Mary's College of Maryland, Maryland's public honors
college.  Her research focuses on the political economy of climate change;
specifically the tension between equity and efficiency in international
climate control efforts. Articles by Sheeran have appeared in Environmental
and Resource Economics, Ecological Economics, Eastern Economic Journal, and
The International Journal of Economic Development. She has worked as an
economist for the World Resources Institute and the U.S. Department of
Agriculture. She works with environmental organizations in Maryland,
including the Chesapeake Climate Action Network, Maryland Public Interest
Research Group, and the Maryland Sierra Club. She graduated summa cum laude
with her B.A. in economics and political science from Drew University. She
completed her Ph.D. in economics from American University.

1 Comment so far
Show All
ezeflyer August 21st, 2008 6:19 pm

"The Endangered Species Act is unfortunately just one example of increasing
pressure to change our nation's most significant environmental laws in ways
that benefit developers and property owners at the expense of the public at
large."

Incorporate We the People and make the developers do business with our
corporation instead of with our bribed representatives.

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AnimalVoices
Speaking For Animals & Their Environment
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