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  • https://doi.org/10.1093/acrefore/9780190625979.013.979Copy DOI Icon

Wicked Problems in Environmental Economics

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Abstract

Wicked problems in environmental economics refer to complex, multifaceted issues that defy straightforward solutions due to the interplay of social, economic, and environmental factors. These problems are often characterized by uncertainty, competing values, and dynamic conditions, making them challenging to address through traditional economic models or policy approaches. One of the key characteristics of wicked problems is that they lack a clear, definitive solution. Unlike “tame” problems, where outcomes can be predicted and optimized, wicked problems involve multiple stakeholders with diverse interests and values. For example, climate change, biodiversity loss, and water resource management are all wicked problems because they affect various sectors—agriculture, energy, and ecosystems—each with their own priorities. What benefits one group may harm another, creating conflicts over the best course of action. Another complicating factor is the high level of uncertainty associated with wicked problems. Scientific data and economic models can help predict potential outcomes, but they often cannot capture the full scope of these issues, especially when considering long-term environmental impacts. In environmental economics, this uncertainty is exacerbated by the interdependence of ecological systems and human activities. Wicked problems are also dynamic, meaning they evolve over time as new information becomes available and as social, economic, and environmental conditions change. Finally, the resolution of wicked problems often involves trade-offs between competing goals, such as economic growth and environmental protection. These trade-offs are inherently political, as different stakeholders—governments, industries, communities, and advocacy groups—often have divergent views on what should be prioritized. This complicates the policy process, requiring negotiation and collaboration across sectors.

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