by EARTH POLICY INSTITUTE on APRIL 8, 2010

By Lester R. Brown

As economic decision makers—whether consumers, corporate planners, government policymakers, or investment bankers—we all depend on the market for guidance. In order for markets to work and economic actors to make sound decisions, the markets must give us good information, including the full cost of the products we buy.

Unfortunately, markets largely ignore the indirect costs of goods and services, thus grossly distorting the structure of the economy. The market price of burning coal, for example, includes only the direct costs, those of mining the coal and transporting it to the power plant. By neglecting More >