The concepts of dynamic ecological equilibrium and optimal externality are defined. The former is frequently advanced by ecologists as an objective of environmental planning. The latter is advanced as a planning objective by economists of the cost—benefit school of thought. It is demonstrated that the two are necessarily incompatible objectives: the former precludes the latter, and vice versa. If the importance of ecological ‘steady states' can be shown, however, it follows from the analysis that the ecological objective is logically prior to the economic objective. The conventional approach to planning for ‘externality correction’ is then misplaced.
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