In the interest of being brief let me say I loved today's talk about the value of the pebble deposit at current market prices. Great information that all Alaskans should be aware of. Mr. Hampton's talk started by discussing market inefficiencies and negative externalities. As much as Pebble is a gold mine it is also a "negative externality" mine but that is a subject for a whole different blog. Suffice to emphasize the part of Mr. Hampton's talk where mentioned that markets can and often do fail when it comes to pricing pollution.
So why do I think Economics should be the field of last resort for understanding Pebble? To resort to Economics assumes that the deposit is going to be developed. If we assume that then I agree with Mr. Hampton that it is time to educate Alaskans, staring with our students, on the ways in which we can get the best deal for our resource wealth. Other fields, such as Geochemistry, Mining Engineering, Hydrology, Environmental Science and Fisheries Management probably give a better picture of the problems with the mine. Here is just one example of the kind of study I am promoting. In this study (watch the video) we can see juvenile salmon losing their ability to react to predators because copper concentrations in the water have been raised:
http://www.nwfsc.noaa.gov/
A major issue with a high sulfide rock mine like Pebble is Acid Mine Drainage which is largely caused by bacteria.........anyone talking about bacteria's role in the pebble mine debate? I haven't heard much about it. Breaking up the rock (mining) exposes more water and surface area to these bacteria which produce acidic water which can leach into the environment. For you consumption (of pyrite):
http://microbewiki.kenyon.edu/
Brett Roth
Interesting study, and alarming. I have to agree with you, Brett. I do not believe that we can use Economics as the primary factor in making a decision about a mine that could have catastrophic environmental impacts.
ReplyDeleteWhat is the opportunity cost of destroying a pristine environment and a robust natural resource?
Missy Fraze
I agree that it is crucial to examine the Pebble Mine problem from as many angles as possible, especially the "good science" angle.
ReplyDeleteEconomics may be the driving force for developing Pebble, but there is so much more, as Andres Gustafson from the Renewable Resources Foundation pointed out last week in class.
I was curious about the Renewable Resources Foundation funding, and who their big donors are. It's always good to know those kinds of things.
Jeanne Larsen