Ethical aspects–can we value life, health, and environment in money terms?

Abstract

Measuring time, life, and environment in monetary terms is the normal practice in transport project appraisal. But there is a widespread believe that these measurements are unethical. This can be observed in questionnaires where people reject the idea of monetary measurement, in particular for environment and life. Cost-benefit analysis is based on neoclassical economics, which is grounded on utilitarianism, a doctrine that considers that the right course of action should be elicited by weighting up the consequences. In contrast, deontological ethics advocates rules to be followed regardless of the consequences. Economic or exchange value is attached to the former; whereas intrinsic or absolute value applies to the later. Economic value considers the impact on utility, that is, benefits or costs; whereas intrinsic value is unrelated to human benefits. In this context we argue that a rule-based ethics will lead to no action since all options would have the same relative value. In a scarce resource context a choice is needed, and hence a rule-based value cannot be considered a morally superior approach. In addition, human behavior is consistent with utilitarianism since individuals are continually, even unconsciously, making trade-offs between public and private goods.