Ecological Economics Lecture 11 Tiago Domingos Assistant Professor Environment and Energy Section Department of Mechanical Engineering Doctoral Program and Advanced Degree in Sustainable Energy Systems Doctoral Program in Mechanical Engineering Doctoral Program in Environmental Engineering

Ethics – Problem 1 General Clarification “Implementation of a market” means that kidneys will be allocated using the market mechanism and not through government intervention or something similar.

Ethics – Problem 11 Kant NO Donating a kidney for money is not an ethical behaviour (because there is personal benefit) –But creating the market itself might be ethical Establishing a market excludes people who cannot pay (violating the universality of ethical rules) –However, currently kidneys are also not generally available –A price is paid, so the principle of respect for persons is not violated. Establishing a market sets a price on human life (people die if they cannot pay) Everyone has a right to health

Ethics – Problem 11 Utilitarianism YES Both the seller and the buyer increase their utility, so overall utility increases. –But the maximum welfare might not be reached, due to income constraints –Strict application of utilitarianism might entail coercion Only if it is a perfect market –“With an imperfect market (...) there would be a scarcity of kidneys (...)” NO Income constraints

Ethics – Problem 11 Rawls NO A market for kidneys entails inequalities, because the poorer people may not be able to buy a kidney –They are worse off as buyers, but they are better off as sellers. Some individuals do not have conditions to donate, which is an inequality