Pricing nature’s freebies

Another underlying theme in Economics is the theme of “opportunity cost”. Very often we see someone throwing a small waffle warp on the street instead of in a bin. And it may seem like an unimportant act, so does it really matter? I am living in China at the moment and can not help but notice how with improved incomes people become more careless towards their surrounding. And today I came across this article in The Economist that shows clear links between China’s development in recent decades and the degradation of the environment. I would think that the opportunity cost of development is pretty high and will be paid by generations to come unless the government of the country tightens the control of the ecosystems. So read on…