Problem
Resource consumption exacerbated by price distortions
Other Names:
Deflated market prices promote unsustainable resource useResource 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.
Broader Problems:
Inappropriate uncontrolled marketsUnsustainable consumption patternsEconomic dependence upon socially undesirable activitiesNatural resource depletion due to high-level consumption Narrower Problems:
Perverse environmental subsidiesHidden environmental costs of economic production Related Problems:
Consumerism Subject(s):
Amenities → ConsumptionCommerce → Finance
Commerce → Market
Commerce → Purchasing, supplying
Communication → Promotion
Development → Sustainable development
Economics → Resource utilization
Fundamental Sciences → Material
Research, Standards → Signs and labels
Resources → Resources
Societal Problems → Distortion
Societal Problems → Failure
Societal Problems → Inadequacy
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
30.04.2022 – 06:05 CEST