Why Law Now Needs to Control Rather than Follow Neo-Classical Economics

Abstract

Neo-classical economics and selfish notions of utilitarianism are driving the globalized economy. Those approaches are destined to fail as they have no brake to discourage humanity from consuming, populating, or polluting enough to harm the life support system of our planet. As they take lives for proprietary gain, neo-classical economics and its decision tool, cost-benefit analysis, work to increase humanity’s foreseeable risks. We should reject the theory and its tools. We need to search for ways to control rather than follow neo-classical economics. We need a careful discussion about the needed changes and their timing.

Keywords: Law & economics, administrative law, environmental law, cost-benefit analysis, CBA, neo-classical economics, selfishness, significant risk, foreseeability, irreversibility, moral law, morality, precautionary principle

JEL Classification: D61, D81, E13, K23, K32