This timely and thoughtful commentary in Investment and Pensions Europe makes a very strong case for the valuation of externalities. Mariathasan argues that unless externalities are valued in dollar terms, investors will continue to finance assets and services that bring no social or environmental value.
Public goods are not traded and are therefore not priced. As a result, human-made capital—i.e., financial and manufactured capital—has been given higher valuations than all other types of capital, whether natural, human, or social capital.
Read the full article at Investment & Pensions Europe, June 2020.