Externalities

Most or some of the time, it’s easy for us to only take things at face value and forget and not see the additional or long-term benefits (or costs) something can bring. Because of that (and perhaps other reasons too), we undervalue and overvalue a lot of things in our life, even the important ones.

E.g. smokers place the wrong amount of value on smoking

Note: No offense, just a photo I took very recently :p I hope the absence of the ‘cigarette’ (and maybe the flower portrait) doesn’t undermine the true meaning of the photograph. Having said that, I’m yet to think of a suitable meaning lol. So if you’ve got any suggestion, please tell me!

Even then, it’s still not easy to put the correct or exact value on something. But at least, after putting a good amount of thought in, you’ll get it as close as possible to that something’s real value, right?

I admit that I’m not one to talk, but hey, there’s good in reminding everyone else!

Over at Economist.com:

Ecosystem services are what a forest provides merely by existing. A standing forest can generate rainfall, prevent flooding, regulate the soil, provide biodiversity and store carbon. These benefits are received by everyone in society, but no one pays for them. Such environmental services are often termed “externalities” because they are not included in the price of the forest. When forests are traded in a traditional way, their price usually depends only on the value of the timber and the land on which it grows. No account is taken of the broader services to society. The result is that forests are being cut down because an incorrect price is put on them.