Thispapershowsthatanattachmentofpricesbycourtsorstateagenciestoenvironmentalgoodsiswithoutpropereconomicfoundationandafiction.Avaluationinmonetarytermsofdamagestobiotopesinoilpollutioncasesisarbitraryduetothemissingmarketexchangeprocesses.Itdoesnotmakesensetoattachanexchangeratetonon-exchangeablegoods.Therearenomarketsandpricesforbiopersityandthereisnomonetisationbycentralbanksforanygoodoutsideofmarkets.Money,neverthelesscreatedbycentralbanksfornon-exchangeablegoodswouldbeusedinexchangesonmarketsandnotleftunused,onlypassivelyreflectinggiven“values”tonon-exchangeablegoods.Byvaluingandmonetizingenvironmentalgoodscentralbankswillproduceatoolargemonetarybasefortheexchangeablegoodsandaffectpricesonmarketsinaninflationaryway.Cashpricesintheformofdamagesforintangiblegoodsarenotmarketprices,butpure“preventionprices”whicharesimilarlyjustifiedlikepenalties,fines,andcompensations.Atareasonableamount,theyareeffective,useful,andrecommendableasanincentivedeviceeveniftheirbasicjustificationisnotbuiltonmarketvaluations.
