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Economics And The Environment Although Research Proposal

Meanwhile, Dwight R. Lee (writing in The Independent Review, 2001) points to a situation where a powerful environmental group (Audubon Society) has cooperated with an energy company and both have profited. Free market environmentalism has shown the way for profits and preservation at the same time in this case. The Audubon Society (AS) owns the 26,000-acre Rainey Sanctuary in the swamps of Louisiana, and while the group is opposed to oil drilling and gas drilling in 99 out of 100 cases, the AS has "been willing to accommodate the interests of those whose priorities are different" (Lee, p. 219). Those interests include allowing thirty-seven wells to be exploited for oil and gas in the Rainey Sanctuary.

According to Lee, the AS has received royalties of more than $25 million from those 37 wells, and in the meantime the technology used in the oil and gas development has prevented any spills or other despoliation. Do not conclude that the AS has "acted hypocritically by putting crass monetary considerations above its stated concerns" for the protection of the natural world and its wildlife, Lee asserts (p. 219). Lee, Professor of Economics at the University of Georgia, views the AS -- because of its ownership of Rainey Sanctuary -- is part of an "extensive network of market communications and cooperation." This allows the AS to "do a better job of promoting its objectives by helping others promote theirs" (p. 219). "Money talks," Lee reminds readers; and indeed the consumers of the oil and gas from Rainey communicate the value they receive from those resources by paying the price the energy company charges. And those "market prices" for the oil and gas in effect are communicating to the Audubon Society -- owners of the land -- through the money the oil and gas companies are willing to pay to drill on that land.

Buy accepting $25 million from the royalties of the oil and gas the Audubon allows to be exploited from their property, the AS can then "purchase additional sanctuaries" to be preserved for habitat and the wildlife that flourishes in that habitat. However, Lee mentions that this deal was possible because the Audubon has ownership of the Rainey property. When...

ANWR is publicly owned so "environmental groups have no incentive to take into account the benefits of drilling" (Lee, p. 221). But Lee insists that if the Audubon Society or NDC or other environmental groups "if they were responsible for both the costs and the benefits of that drilling" (Lee, 221). In other words, if they profited from the sale of leases on oil development territory, conservation groups might soften their opposition.
This is a dubious analogy and comparison as far as practicality though because groups like AS and NRDC will not likely hold the reins on hugs tracts of public land that has potential oil reserves. Imagine, Lee continues, if a "consortium of environmental organizations is given veto power of drilling" but a promised 10% of oil company rights to drill went to the consortium. What would come into "sharp focus" in this scenario would be the economic benefits to the organizations in the consortium, Lee explains. Indeed, with some of the money the consortium would receive could be invested in another "environmental treasure" in another part of the country or the world.

In their book, Anderson and Leal suggest another possible scenario: place a "trust authority" in charge of managing the oil or gas resources, instead of handing over the management to energy developers. That strategy is in place with the Grand Staircase-Escalante National Monument (established by President Clinton in 1996) (p. 89). And in closing, the words of the authors ring loud and positive in the context of what has been discussed in this paper: "Free market environmental principles have become a coalescing theme among environmentalists and fiscal conservatives…"; and one hopes this cooperation can continue.

Works Cited

Anderson, Terry L., and Leal, Donald R. Free Market Environmentalism. New York: Palgrave

Macmillan, 2001.

Lee, Dwight R. "To Drill or Not to Drill: Let the Environmentalists Decide." The Independent

Review, VI.2 (2001): 217-226.

Nature Conservancy.…

Sources used in this document:
Works Cited

Anderson, Terry L., and Leal, Donald R. Free Market Environmentalism. New York: Palgrave

Macmillan, 2001.

Lee, Dwight R. "To Drill or Not to Drill: Let the Environmentalists Decide." The Independent

Review, VI.2 (2001): 217-226.
Nature Conservancy. "Annual Reports." Retrieved November 28, 2009, from http://www.nature.org.
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