True Cost Economics
Categories: Econ
True cost economists believe all the negative aspects of production should be included when it comes to pricing products and services. For example, should the cost of cleaning up air pollution from a coal-powered plant be included in the cost of energy charged to consumers?
How about the expense of disposing of nuclear waste being added to our electric bills? Should the cost of natural gas obtained from fracking include money that will need to be paid to clean up any water pollution? Should the price of a pack of cigarettes include the costs for treating people who develop lung cancer? Those who follow true cost economics say a resounding “yes!”
However others have noted that if you did account for all the noise, water and air pollution created by making and driving automobiles, for example, their true cost would increase by about $40,000 per vehicle. And an airline seat would cost another $500 per ticket. Hopefully solutions can be found to avoid creating pollution in the first place so we all won’t have to stay home.