> The environment is going to shit and by the time the markets have incorporated that cost, it is too late.
I'm not sure that measuring externalities like that are what markets are for.
In the context of this post, for example, the author seems to be casting a pretty narrow net here, and talking about whether market prices are accurate measures of what other people are willing to pay for a thing.
To speak of markets as serving society poorly by not incorporating environmental impacts is to speak of other than what he is talking about when he says "markets are rational".
I'm not sure that measuring externalities like that are what markets are for.
In the context of this post, for example, the author seems to be casting a pretty narrow net here, and talking about whether market prices are accurate measures of what other people are willing to pay for a thing.
To speak of markets as serving society poorly by not incorporating environmental impacts is to speak of other than what he is talking about when he says "markets are rational".