Allocation, Distribution, and Scale: Towards an Economics that is Efficient, Just, and Sustainable
Author(s)
Daly, Herman E.
Abstract
The three basic goals of an economic system must be efficient allocation, equitable distribution, and sustainable scale. The first two have a long history in economic theory, and specific independent policy instruments have been developed for their realization. However, scale has not been formally recognized in economic theory, and no corresponding policy instrument has developed. In practice, however, where real problems must be acknowledged and addressed, scale has implicitly been recognized as a separate and distinct area of concern. This has occurred especially in the practice of issuing tradeable permits for resource depletion and pollution rights.
