Author Archives: Adam Bailey

Behavioural Economics and Environmental Valuation

The behaviour on which revealed preference valuation methods are based almost inevitably results from thought processes involving bounded rationality.  What does that imply for such methods? The insights of behavioural economics have been applied to many sub-fields of economics, and … Continue reading

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Explaining Environmental Policy Failure

A proposed new approach to environmental policy fails to convince. Why Environmental Policies Fail by Jan Laitos is a curious book (1). Its subject is certainly important, and it’s hard to disagree strongly with the bleak picture it presents of … Continue reading

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Improving on GDP

The winning entries for the Indigo Prize highlight both the importance of improving economic statistics and some of the challenges of doing so. The launch of the Indigo Prize by LetterOne is a welcome initiative which recognises both the limitations … Continue reading

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A Difficulty in Assessing Sustainability

Long-term forecasting of the aggregate production function is essential for assessing sustainability, but very difficult. Is our current living standard sustainable?  Or does depletion of non-renewable natural resources such as fossil fuels and metal ores mean that it must eventually … Continue reading

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