Problem

Resource consumption exacerbated by price distortions

Other Names:
Deflated market prices promote unsustainable resource use
Resource depletion due to market price anomalies
Unsustainable development due to failure of price signals
Incidence:

The world market prices for primary commodities, such as iron ore and steel, are maintained at an artificially low level in order to inflate national export trade against competitors. This is possible because primary resources are treated as unlimited, low value goods in an international market with heavy competition between countries.

External costs are a major reason that price signals are unreliable. A good example is the price of gasoline, which in the USA carries a social cost of at least $4.00 a gallon but is sold to Americans for $1.20. Another source of unreliable price signals is perverse government subsidies.

Related Problems:
Consumerism
Related UN Sustainable Development Goals:
GOAL 1: No PovertyGOAL 2: Zero HungerGOAL 3: Good Health and Well-beingGOAL 4: Quality EducationGOAL 5: Gender EqualityGOAL 6: Clean Water and SanitationGOAL 7: Affordable and Clean EnergyGOAL 8: Decent Work and Economic GrowthGOAL 9: Industry, Innovation and InfrastructureGOAL 10: Reduced InequalityGOAL 11: Sustainable Cities and CommunitiesGOAL 12: Responsible Consumption and ProductionGOAL 13: Climate ActionGOAL 14: Life Below WaterGOAL 15: Life on LandGOAL 16: Peace and Justice Strong InstitutionsGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
13.05.2019 – 18:04 CEST