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So why do we not analyse externalities and unjust enrichment?



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Positive Development From Vicious Circles to V

So why do we not analyse externalities and unjust enrichment?
The public is aware of generalized externalities, and the fact that some gain benefits at the expense 
of the community. But talk of ‘externalities’ can be vague and almost synonymous with pollution 
or collateral damage. Our generalized problem descriptions – population, global warming, over-
consumption, ecological footprint and so on – represent everyone as equally responsible and equally 
harmed, at least within a given region, class, nation or other category. But the costs and benefits of 
environmental damage are not experienced equally.
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Carbon footprint calculators can tell us our 
individual contribution, but all individuals combined account for only about 10 per cent of emissions.
These calculators do not link resource transfers to the acquisition of power, wealth and other benefits 
that accrue to those who are more capable of reducing externalities. Environmental management has 
been studiously apolitical. And apolitical, in this context, amounts to actively supporting the status 
quo. It is easier to blame an anonymous ‘other’: aggregations of people like suburbanites or the rich as 
a class. Yet in a project approval setting, the interests of an individual developer appear much greater 
than the interests of a community, because the losses to the individuals in the community are relatively 
small. That is to say, the loss to the community is aggregated and distributed uniformly over the 
population, so people appear to have little to lose individually (eg only an increased ‘statistical’ chance 
of cancer). In contrast, any extra gains (unjust enrichment) to the developer are not counted. Yet the 
losses of expected profits that the developer would forego if the project were not approved are often 
tacitly considered. This parallels the frequent expression of sympathy for a rich man who goes to jail 
as he ‘has so much to lose’. There is no sympathy for ‘common criminals’ who have little to lose.

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