Ep. 006: Does putting a price on nature save or destroy it?

Cover art for Episode 006 on the politics of nature’s “free gifts.”

Nature’s $33 trillion yearly price tag, a sealed glass world in the desert, and the free gifts our economy keeps taking for granted.

Capitalism is relentless in putting a price on everything. Yet the things we need most, from clean air and a livable climate to healthy oceans and supportive caregivers, are are taken for granted, and rarely paid for. In Free Gifts: Capitalism and the Politics of Nature (Princeton University Press), political theorist Alyssa Battistoni sets out to untangle this existential riddle: why a whale is priced at $2 million, a rocket company at $2 trillion, and the living planet that sustains them both goes largely unpriced.

Alyssa, an assistant professor of political theory at Barnard College, spent a decade on the book. It began as her dissertation, written while climate policy leaned almost entirely on carbon taxes and cap-and-trade: small tweaks to a planet-threatening catastrophe. In 2019 she set it aside to co-write A Planet to Win, a manifesto for a Green New Deal. Free Gifts returns to the same moment from a deeper angle: how did markets become the only tool we could imagine for a problem this big?

Listen: Apple Podcasts, Spotify, Amazon Music, RSS

How early economists saw nature

18th- and 19-century economists like David Ricardo and Jean-Baptiste Say marveled at nature's "gratuitous gifts": fertile soil, wind, rain, all the work the natural world does for nothing. Alyssa points out how strange the phrase "free gift" really is. A gift is free by definition. But in most cultures, a gift also creates an obligation to give something back. A free gift is one you can take forever without returning anything.

That, she argues, is how capitalism treats the nonhuman world. Clean air, a stable atmosphere, and water filtration are all available for free, so they don't count in its system of value, and are treated as if they're worthless.

The same logic reaches into our homes. The book's most surprising chapter, and the one where the project first began, looks at cooking, cleaning, raising children and caring for the sick. This is work that sustains life, is rarely paid, and is often treated as if it simply comes naturally.

Externalities aren’t a market failure

If the free gift is what capitalism takes from nature, pollution is what it gives back. Economists call it an externality: a cost that lands on someone outside the deal. The idea was formalized in 1920 by the Cambridge economist Arthur Pigou, whose example was a factory chimney fouling a neighborhood that never agreed to breathe its smoke.

For decades, economists treated such spillovers as rare exceptions, "market failures" to be fixed with a tax. Alyssa sees the externality as how markets are built to work: buyers and sellers answer only to each other, while the effects of their trade ripple out to everyone else.

A 2013 study by the consultancy Trucost, for a UN Environment Programme initiative called The Economics of Ecosystems and Biodiversity, estimated $7.3 trillion a year in unpaid environmental costs from the world's primary industries. Of the 20 most damaging, not one would turn a profit if it paid its own bill.

Natural capital and the $2 million whale

So why not put prices on the other side of the ledger, too? People have tried. In 1997, a team of ecologists and economists led by Robert Costanza valued the world's "ecosystem services," from pollinating crops to absorbing storms, at about $33 trillion a year. That was nearly double the global economy at the time. In 2019, IMF economists priced single species. By locking carbon in its body and fertilizing the plankton that produce much of the planet's oxygen, they found, the average great whale is worth more than $2 million.

Critics answer that some things should never be for sale. Alyssa has sympathy for both camps, and thinks both are missing the point. We already buy and sell nature constantly. More importantly, nature mostly isn't being priced at all. Capital has little interest in ecosystems, because they're hard to own, hard to fence off, and hard to profit from. They're still free, and they're still being destroyed.

That's why she's skeptical of carbon credits and corporate net-zero pledges, which she calls "a fairly marginal enterprise," mostly a way for companies to tidy their public image. Nobody pays for what they already get for free, like the air we breathe. As Alyssa puts it: "If these [billionaires] could make us pay for oxygen, they would."

“The kinds of work that sustain and improve both human and non-human life without increasing resource use or generating dangerous byproducts are precisely those that capital is least likely to provide.”
— Alyssa Battistoni

Biosphere 2 and the cost of a man-made Earth

What would it cost to replace nature's free gifts? In September 1991, eight people sealed themselves inside Biosphere 2, a three-acre glass replica of Earth's ecosystems in the Arizona desert, bankrolled by the Texas oil heir Edward Bass for roughly $150 million. Within months, the crops were failing and the crew was going hungry. Within a year and a half, oxygen inside had fallen from 21 percent to 14, and managers began pumping in air from outside.

Biosphere 2 failed as a home, but it still draws visitors. Today, the University of Arizona runs it as an Earth science laboratory. When I went a couple of years ago, it was surprisingly quiet for a fall Saturday. Stranded in the desert, far off the highway, we toured the empty facility and felt almost like members of the original crew. In the gift shop, I found freeze-dried ice cream sandwiches, bracelets made from ocean plastic, and a T-shirt that read: "A good planet is hard to find."

Protecting nature without a market

After finishing her dissertation, Alyssa traveled to Costa Rica, the country most often held up as proof that ecosystem services can pay. What she found wasn't really a market at all. In 1996, Costa Rica passed a forestry law that pays landowners to protect and replant forest, funded mostly by a tax on gasoline and diesel. In 1990, forest covered less than a quarter of the country. Today, it covers about 60 percent.

Other countries have gone further, at least on paper. In 2008, Ecuador became the first nation to recognize the rights of nature in its constitution, and in 2021 those rights helped stop a mine in the Los Cedros cloud forest. But this February, Ecuador passed a law fast-tracking new mining, and Indigenous groups are back in court. Rights like these, Alyssa says, work only to the extent that people mobilize behind them.


Additional resources

Start with Alyssa's book, then follow the threads: the studies behind the price tags, older traditions of thinking about gifts and care, the strange saga of Biosphere 2, and the places trying something other than a market. If the oxygen line stuck with you, the last section has ways to push back.

READ

WATCH

  • Biosphere 2 in nine minutes: Retro Report, "Biosphere 2: A Faulty Mars Survival Test Gets a Second Act", a short history built from the original news footage.

  • The feature documentary: Spaceship Earth (dir. Matt Wolf, 2020), on the Biospherians and their sealed world.

  • The two Americas: Martin Luther King Jr., "The Other America" (Stanford University, 1967), freely viewable via San Francisco State's DIVA archive.

ACT

Episode 006 designs for Talking Trash | Art Director: Frances Miller

Next
Next

Ep. 005: Tracing the hidden afterlives of Philadelphia's trash