Economic Analysis and Ecosystems:some Concepts and Issues

Economists and ecologists often disagree. While some of these disagreements arise from differences in individual perspectives, and some others may arise from a fundamental difference in paradigms, others may arise from simple misunderstandings. Economists are often remiss in not fully explaining the assumptions on which they base their analyses. In this paper I review the assumptions underlying the crucial economic concept of “marginal analysis.” Ecologists concerned with the translation of scientific knowledge into social decision making should understand both the concept of marginal analysis and the circumstances under which it is or is not appropriate.