8
METHODS Evolving knowledge and the precautionary principle Peter Dorman The Evergreen State College, Olympia, WA 98505, USA Received 9 January 2004; received in revised form 17 January 2005; accepted 17 January 2005 Available online 15 April 2005 Abstract Existing formulations of the Precautionary Principle tend to be too weak or too strong. They are too weak if they limit themselves to rejecting, for policy purposes, the bias in scientific research toward minimization of Type I error. This position is already embodied in classical decision theory. They are too strong if they demand proof of safety on the part of producers of potentially hazardous products and processes; this would eliminate too many beneficial activities. An intermediate position is proposed: the function of precaution is to take into account what we do not know as well as what we do about the consequences of human activity. This leads to a meta-rule: decision-making is precautionary if unpredictable revisions in knowledge lead equally to unpredictable revisions in regulation. In the context of evolving knowledge about the ecological impacts of human activities, this implies a shift toward significantly greater protection. D 2005 Elsevier B.V. All rights reserved. 1. Introduction The precautionary principle is widely viewed as the centerpiece of ecological and public health policy, yet it is difficult to say just what it means. Very general invocations can be found in national laws and international agreements, but the precise content varies from one circumstance to the next. At times the principle adopts a mild demeanor, as in one of its most prominent versions: In order to protect the environment, the precautionary approach shall be widely applied by states according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost- effective measures to prevent environmental degrada- tion. (Rio Declaration on Environment and Develop- ment, 1992). At other times (and sometimes the same times) it takes a much stronger position: Producers and proponents [of industrial activities] therefore must bear the burden of demonstrating and maintaining safety of products, projects, and technol- ogies. (White Paper on Precaution of the City and County of San Francisco, 2003). The result is that precaution is often adopted by official bodies as a relatively unobjectionable state- 0921-8009/$ - see front matter D 2005 Elsevier B.V. All rights reserved. doi:10.1016/j.ecolecon.2005.01.015 E-mail address: [email protected]. Ecological Economics 53 (2005) 169 – 176 www.elsevier.com/locate/ecolecon

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www.elsevier.com/locate/ecolecon

Ecological Economics 5

METHODS

Evolving knowledge and the precautionary principle

Peter Dorman

The Evergreen State College, Olympia, WA 98505, USA

Received 9 January 2004; received in revised form 17 January 2005; accepted 17 January 2005

Available online 15 April 2005

Abstract

Existing formulations of the Precautionary Principle tend to be too weak or too strong. They are too weak if they limit

themselves to rejecting, for policy purposes, the bias in scientific research toward minimization of Type I error. This position is

already embodied in classical decision theory. They are too strong if they demand proof of safety on the part of producers of

potentially hazardous products and processes; this would eliminate too many beneficial activities. An intermediate position is

proposed: the function of precaution is to take into account what we do not know as well as what we do about the consequences

of human activity. This leads to a meta-rule: decision-making is precautionary if unpredictable revisions in knowledge lead

equally to unpredictable revisions in regulation. In the context of evolving knowledge about the ecological impacts of human

activities, this implies a shift toward significantly greater protection.

D 2005 Elsevier B.V. All rights reserved.

1. Introduction

The precautionary principle is widely viewed as

the centerpiece of ecological and public health policy,

yet it is difficult to say just what it means. Very

general invocations can be found in national laws and

international agreements, but the precise content

varies from one circumstance to the next. At times

the principle adopts a mild demeanor, as in one of its

most prominent versions:

In order to protect the environment, the precautionary

approach shall be widely applied by states according to

their capabilities. Where there are threats of serious or

0921-8009/$ - see front matter D 2005 Elsevier B.V. All rights reserved.

doi:10.1016/j.ecolecon.2005.01.015

E-mail address: [email protected].

irreversible damage, lack of full scientific certainty

shall not be used as a reason for postponing cost-

effective measures to prevent environmental degrada-

tion. (Rio Declaration on Environment and Develop-

ment, 1992).

At other times (and sometimes the same times) it

takes a much stronger position:

Producers and proponents [of industrial activities]

therefore must bear the burden of demonstrating and

maintaining safety of products, projects, and technol-

ogies. (White Paper on Precaution of the City and

County of San Francisco, 2003).

The result is that precaution is often adopted by

official bodies as a relatively unobjectionable state-

3 (2005) 169–176

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P. Dorman / Ecological Economics 53 (2005) 169–176170

ment of intent, even while its advocates and enemies

view it as a doctrine with revolutionary implications.

The position to be developed here holds that the

first interpretation is too permissive and the second

too restrictive. Precaution that goes beyond conven-

tional risk assessment while remaining analytically

defensible needs a new foundation. In the next section

I will explain why rejection of scientific certainty is

too weak a posture, and why the demand that

processes be proven safe before being adopted is too

strong. Section 3 takes a brief detour to address the

question of rights and their relation to precaution. The

final section offers an alternative approach based on

the goal of taking decisions that best anticipate the

choices we are likely to make in the future when we

better understand the risks at stake.

2. Too little, too much

The first claim commonly attached to the Precau-

tionary Principle is that lack of scientific certainty

should not preclude action to forestall risks to the

environment and human health. From a political

standpoint such a demand is understandable and even

necessary: crucial environmental issues are typically

adjudicated by government agencies and international

treaty organizations under pressure from business

interests. This pressure is usually so effective that the

default position of these bodies is to permit industries

to proceed with their plans, and that any interference

requires enormous countervailing support. The dis-

course on which regulators often rely for this support is

that of an objective scientific process whose evidence

is dispositive: evidence that bforces the handQ of theregulator. (Coglianese and Marchant, 2003).

In such situations the debate over policy becomes a

dispute over the definitiveness of the relevant science.

Those favoring action to protect the environment are

forced to argue that the weight of available evidence is

clear and sufficient, while business interests argue that

the evidence is still murky, contested and ill-under-

stood. Given the conservatism intrinsic to the scien-

tific process, as well as the ability of powerful

economic interests to finance their own research, it

is a debate that puts environmentalists at a disadvant-

age. A current example is provided by the dispute

over what measures to take in response to the threat of

global climate change. Even after decades of intensive

research, evidence in favor of human-induced global

warming is preponderant but falls well short of

certainty, and little confidence can be given to any

specific forecast of the general extent of projected

warming or its ecological consequences.

In this context it is reasonable for environmental

advocates to reject the argument that evidence must be

near-certain before any action can be taken. By the

time the evidence is all in we may have permitted

costly, irreversible effects to occur. One way to escape

the compulsion to speak from scientific certainty is to

have institutions commit themselves to action in its

absence, which is what the weakest version of the

Precautionary Principle proposes.

A deeper justification for this stance can be found in

the conflict between research and decision approaches

to uncertainty. By uncertainty in this context, we mean

a situation in which the available evidence is not

sufficient to establish an explanation or prediction with

complete certitude—in other words, the normal state

of affairs. This uncertainty can be thought of in the

framework of Types I and II error, where the first refers

to the possibility that a proposition, held to be true, is

actually false, and the second to the reverse possibility

that a rejected proposition is actually true. Logical

propositions can be proved one way or the other, but

empirical claims can never shed all possibility of error.

The best that one can do is to choose to bear the least

likely, or damaging, risk of being wrong.

Scientific research is based on the single-minded

minimization of Type I error. Typically experimental

protocols are devised to exclude spurious influences

that might result in false positives, hypothesis tests

must reduce such a risk to under 5% likelihood to

warrant bsignificantQ findings, and many corrobora-

tive studies are required to confer on a proposition the

status of bacceptedQ. Clearly, scientists are far more

concerned about unwittingly accepting a false hypoth-

esis than rejecting a true one. Errors that lead to such

acceptance, if uncovered, can be career-threatening,

whereas no researcher should expect to be pilloried

for the opposite mistake.

Such conservatism on the part of science is entirely

justified. The complexity of the scientific enterprise

has led to a vast division of labor in which each

research team focuses on a narrow set of questions by

taking as given the findings of all other teams, past

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P. Dorman / Ecological Economics 53 (2005) 169–176 171

and present. If even one of those findings, which the

scientific community has come to rely on, is found to

have been in error, all the work that depended on it is

called into question. Type II error, at worst, slows the

rate of progress in science; Type I error undermines

and corrupts it. The bias we have described may well

be one of the core characteristics that distinguishes

science from all other forms of human inquiry.

Practical decision-making, on the other hand, has

no built-in bias toward either sort of error. What

matters is the cost of being wrong in one direction or

the other. In the case of global climate change, for

instance, societies must determine what policies to

enact in order to counter the accumulation of green-

house gases. Policy decisions ought to depend on

what effects we anticipate at various concentrations of

these gases, which in turn depend on a large number

of hypotheses about the mechanisms governing the

global climate system, the human and ecological

responses to climate alteration, etc. It would make no

sense to set policies on the basis of a dogmatic

avoidance of Type I error (refusing to accept any

hypotheses about the chain of causation linking, say,

the burning of fossil fuels to negative human or

environmental consequences without overwhelming

validation) than it would to set them on the basis of a

dogmatic fear of Type II error (refusing to take

account of the possibility that some of these proposed

linkages are false). In fact, orthodox decision theory

tells us to choose a course of action that maximizes

the expected value of future outcomes, so that the cost

of each sort of error, rather than a priori bias, serves as

the judgment weight.

In the simplest case, a policy might depend on a

single proposition, for instance that a particular

chemical compound is mutagenic at a defined con-

centration. We can either ban or authorize use of the

chemical. Thus we face the risk of Type I error, whose

cost is the economic value foregone through erro-

neous prohibition, or Type II error, measured by the

negative health effects endured as a result of

erroneous approval. Standard decision theory tells us

to multiply the estimated probability of each sort of

error by its associated cost and then choose the least-

cost alternative. Only in the unlikely case that the

health costs of mutagenicity are insignificant com-

pared to economic costs of doing without the

chemical would the decision process approximate

the error bias of scientific research. On the contrary, in

most of the contexts we are concerned with the

relative costs to public health and the environment are

so severe that a reverse bias is called for, so that

correspondingly small likelihoods of Type I error call

for prudential regulation. It is probably this applica-

tion of decision theory that many proponents of the

Precautionary Principle have in mind when they

advocate a default position on the side of hypotheses

that human actions cause environmental harm.

If the most common versions of the Precautionary

Principle have such a well-established basis, what is

the problem? It is that the Principle, by ratifying

decision algorithms already accepted by policy pro-

fessionals, adds nothing new. It does not take us past

cost–benefit analysis, for example, which is a

particular application of the expected value criterion.

This is not a crime, but we should demand more, for,

as we will see, in important respects conventional

decision theory is not precautionary, in the sense that

it does not distinguish between risks we understand

well and those we understand poorly, taking extra care

with the latter.

On the other hand, some versions of the Precau-

tionary Principle overreact to the single-minded

minimization of Type I error on the part of scientific

research by advocating an equally dogmatic minimi-

zation of Type II error. This appears to be the meaning

proposed in the Wingspread Statement:

When an activity raises threats of harm to human health

or the environment, precautionary measures should be

taken even if some cause and effect relationships are

not fully established scientifically. In this context the

proponent of an activity, rather than the public, should

bear the burden of proof. (Wingspread, 1998).

A similar position was taken by the city of San

Francisco in the White Paper quoted above.

It is difficult to be sure what is being advocated

since three distinct propositions are being put forward.

(1) Acceptance of human activities posing risks to the

environment and public health should not be the

default public policy. (2) The burden of conducting

research to determine the extent of the risk should be

borne by those who favor or benefit from the activities

in question. (3) Potentially risky activities must be

bprovedQ safe to be permitted.

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P. Dorman / Ecological Economics 53 (2005) 169–176172

The first has already been shown to be implicit in

conventional decision theory. The second is a distinct

recommendation, separate from any particular bias in

the evaluation of risk. It has the advantage of

extending the polluter pays principle to the costs of

uncertainty and its reduction through research, but the

greater disadvantage of relying on those with a stake

in an activity to inform us of its risk—the problem of

incentive compatibility. Indeed, there have been all

too many cases in which firms seeking to profit from

products provided false assurances of their safety.

(Markowitz and Rosner, 2002) It is unlikely that

environmentalists who invoke the Precautionary

Principle truly wish to have environmental research

conducted by, and therefore responsive to, the affected

businesses.

The final proposition is excessive. One does not

have to be a supporter of Popper in all matters of

methodology to accept the argument that falsifica-

tion, not proof, is the way of empirical research.

(Popper, 1968) It is simply not possible to bproveQany product or production method safe. Hence some

measure of environmental risk is unavoidable if

human beings are to do anything at all. Surely the

degree of risk we can accept has something to do

with the cost we endure if it eventuates as well as

the cost of avoiding it, even if we do not accept the

rigidity of the formal cost–benefit framework. As has

been said, if early humans had been precautionary in

this overly strong sense, we would never have

chosen to domesticate fire. (Rubin, 2000) It is not

necessary to make a formal case against the single-

minded minimization of environmental (Type II) risk

here; the task is not difficult and has been under-

taken elsewhere (Sunstein, 2003).

Thus we have two sorts of criticisms of the

Precautionary Principle as it usually appears. Either

it is so mild it disappears into the standard method-

ology of policy science, or it is so stringent that it

precludes nearly all human activity. What we need,

however, is an approach to precaution that responds

to the complacency of standard policy-making in a

way that also binds itself to the full range of

available evidence, a middle ground between the

paranoia of assuming that all fears are valid and the

hubris of thinking that we can predict, even

probabilistically, the ultimate consequences of our

actions.

3. A digression on rights

Before proposing a reformulation of precaution, it

is necessary to clarify the contexts in which it applies.

Despite the comments in the previous section, there

exists a range of situations in which something close

to the more extreme version of precaution, the

minimization of potential environmental harm with

no consideration of the costs of being excessively

restrictive, is applicable. This arises when there is an

unambiguous assignment of environmental or health

rights to an individual or community.

In such cases the burden of proof is on those in a

position to violate these rights to demonstrate that

there is no reasonable expectation that a violation will

occur. An example should make this clear. Suppose I

return home after being away for a week to find a

leftover casserole in my refrigerator. I remember that

this meal was delicious when I made it, but, having sat

for a while, it now poses a threat of food poisoning.

Let us say that, based on my best judgment of such

things, the probability of actually being poisoned is

1%. Weighing my appetite against my prudence, I

may decide to take a chance and reheat the food.

Now suppose that I operate a restaurant, and that I

have a casserole sitting in my cooler that was made

over a week ago. Can I serve it to my customers,

knowing that the risk of food poisoning is 1%? Surely

not. Diners have a right to expect that, when they

order food from a restaurant, all reasonable efforts

have been made to avoid health risks. Typically,

restaurant inspections aim to reduce risks to such a

level that no one can foresee potential harm. By

serving this food I would be violating the law as well

as widely agreed-on ethical responsibilities. Note that

it is not relevant for this parable that a 1% chance of

harm is a lower probability than that which often sets

the upper boundary for statistical significance in

research tests of environmental and health risk.

It is this insight that underlies one version of the

precautionary principle. Where the public or some

portion of it is invested with a right to not bear a

health or environmental burden, the standard for

potential violators must be stringent. It is their

responsibility to demonstrate that there is no plausible

threat of harm. To the extent that their ability to

predict the outcome of their actions is clouded in

uncertainty, they must be that much more careful, just

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P. Dorman / Ecological Economics 53 (2005) 169–176 173

a driver should reduce her speed in a thick fog. This

principle should not be controversial.

The problem is that pure rights-based precaution is

a special case. There are three reasons for this:

1. In a great many questions involving public

health and the environment, there is no agreed upon

basis for assigning rights; in fact, analysis on the basis

of rights may be completely wrongheaded. A dramatic

example is provided by Rubin (2000): what are we to

do about the threat posed by a collision with an

asteroid or other near-earth object? This has all the

trappings of a situation for which precaution should

be relevant: it is a low-probability, but hardly

impossible, event of cataclysmic environmental and

health consequences. Science cannot tell us just how

likely it is, but what we do know indicates we should

pay attention to it. Rights are out of the question,

however; the asteroid is not a culpable agent. The

question of how much time, effort and money to

commit to forestalling this threat must be answered on

practical grounds alone.

2. It is often the case that rights–even fundamental

rights–are in conflict. A particular striking example is

the tension between indigenous land rights and

environmental conversion. After centuries of dispos-

session, indigenous peoples in many parts of the

world are gaining recognition for the right to some of

the ancestral lands. Surely those who now profit from

past acts of displacement and even annahilation

should accept this minimal duty. On the other hand,

these lands may sometimes be put to uses that threaten

significant ecological values, such as logging in old

growth forests, harvesting fish or wildlife at poten-

tially unsustainable levels or permitting mining

operations that results in water or air pollution. (I

am not claiming that this is common, only that it

happens.) Neither right negates the other: rights of

non-native populations to the environmental com-

mons and its services are not erased by the land rights

of natives, nor vice versa. Rather, the competing rights

must be adjudicated in some fashion, ideally taking

account of the most important interests of each party.

While such conflicts when they arise, are dramatic, we

see similar frictions arising from the overlapping and

competing claims of many communities to portions of

the environment. So long as we embrace a world of

multiple jurisdictions, environmental rights will typ-

ically be less than absolute.

3. The most important limitation to rights-based

precaution is that few rights are so fundamental that

they demand enforcement irrespective of the practical

consequences. A dogmatic adherence to rights is as

unacceptable as a dogmatic (e.g. purely utilitarian)

dismissal of them. A much-discussed case in which

this is perfectly clear concerns the merits of using

DDT to control malaria in at risk countries (The

Lancet, 2000). Although one could argue that an

uncontaminated environment is a right, it is also true

that malaria is extremely costly, and that it is at least

possible that application of DDT could be an

appropriate measure under some circumstances. By

bringing up this example, I am not suggesting that the

case for DDT has been made, just that it is a case. To

rebut it one would have to show that, when the

relevant alternatives are considered, the costs of

banning DDT are either nonexistent or at least

acceptable. At a deeper level, an example such as

this should not be taken as an endorsement of the

rights-neutral stance of cost–benefit analysis: it just

means that costs matter. If we accept this view, we

need a different sort of precautionary principle, one

that tells us how we might apply precaution to an

analysis of tradeoffs.

4. Precaution as a decision meta-rule

The broad context is this: as our technological

prowess increases, human beings are increasingly

taking actions that place fundamental ecological

values at risk. Whole ecosystems are threatened

with disappearance, the global mechanisms that

organize the cycling of energy and materials on

which living systems depend are rendered vulner-

able, and the consequences for human well-being

are potentially profound. These are all risks, but we

are seldom able to place precise probabilities on

them, or even to map the true state of our

ignorance. The mechanisms that regulate these

systems are at best dimly understood, and every

few years we receive a new shock that compels us

to alter our assumptions about what is safe, what is

dangerous, and what is at stake. Our problem is not

simply one of calculating on the basis of what we

know, as orthodox decision theory would have it,

but of taking account of the extent of our ignorance,

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P. Dorman / Ecological Economics 53 (2005) 169–176174

and the potential this poses for blundering into

disasters we can barely envision.

From a theoretical standpoint, the general problem

is this: how should we alter our basis for making

decisions when we suspect we do not know important

aspects of the problem—particularly when the costs

for being wrong may be severe (or themselves little

known)? As long as we view each decision as an

isolated moment in time there is no solution; what we

do not know is what is by its nature not an input into

rational decision-making. We can, however, take the

step of locating our moment’s place in the passage of

time. This has two consequences: it redefines each

decision as one in a sequence of decisions, and it

permits the possibility that our understanding of the

risks and benefits will improve from one decision to

the next. Putting these together, we can restate the

problem as that of making a decision in one period

(the present) that will appear to have been appropriate

(however this is defined) in the future when we have

more information to go on. This imposes a particular

form of time consistency on the decision process, one

for which we have ample tools of analysis.

Let ut be the information set available to decision-

makers at time t. Assume that this set is altered over

time through a sequence of random (unpredictable)

perturbations. Let x be a continuous regulatory

parameter, such as a threshold limit value. (Continuity

simplifies the exposition but does not alter the logic.)

Suppose decision-makers make full use of u to

establish a particular value of x that best satisfies

their criteria. (It is convenient that this model does not

require us to specify the precise algorithm used in this

process; it could be a present value calculation or

something else.) Thus, corresponding to any ut is an

x*t, where x* is this best-practice determination of x.

Given this set of definitions, and assuming that the

decision criteria are unchanged over time, we know,

from the Rule of Iterated Expectations, that

Eðx�tþ1 4 utÞ ¼ x�t

This simply means that our best guess of what

these same decision-makers, using the same algo-

rithm, will do in the future, when more information is

available, is the decision they make today. It follows

from the reasonable assumption that changes in

information are unpredictable. It has the additional

implication that there is no difference between

anticipating the decisions of the near- and the far-

future, since the expectation relationship is recursive:

today’s best choice is the expectation of tomorrow’s,

which is the expectation of its tomorrow, and so on.

The logic behind this result lies at the basis of

modern research into financial markets. In particular,

it establishes the sequence of xt*, xt+1* , xt+2* , . . .., xt+n*as a martingale, random in its first moment. (LeRoy,

1989) One implication is that if profit in the regulated

sector is a first-order function of x, a risk-neutral

investor will be indifferent between two return

streams with different time structures whose present

value equality is predicated on the stationarity of x*.

This is analogous to the fair-game condition in

financial martingales.

This simple result has profound significance for

environmental decision-making. It says that, if deci-

sions are made in the best possible way using all

available information, and if the values of regulators

remain unchanged (or themselves fluctuate unpredict-

ably), there will be no systematic tendency for

regulations to be loosened or tightened over time.

The impact on regulation of an unpredictable addition

to our knowledge will itself be unpredictable. Of

course, by definition, all true additions or adjustments

to our knowledge are unpredictable. Incidentally, the

existence of a regulatory martingale is a necessary but

not a sufficient condition for the efficient use of

information, since the sequence of decisions could be

unpredictable yet all might fall short of the criteria on

which they are supposed to be based. (Among the

many other things they are said to be capable of,

typewriting monkeys could produce unpredictable

environmental regulations.) This distinction between

necessary and sufficient conditions is often over-

looked in the efficient market literature.

The principle of sequentially unbiased variation is

illuminated in the breach. Consider the opposite case:

suppose we have a regulation which is repeatedly

tightened with each new infusion of information. If it

is a TLV, for example, it is lowered year after year and

never raised. This would be a violation of the

efficiency standard specified above, and it is easy to

see why. To lower the threshold, if the decision

process is rational, is to indicate that it was previously

too high. This could be justified on the grounds that it

was impossible to foresee that this would be the case,

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P. Dorman / Ecological Economics 53 (2005) 169–176 175

but such a defense is weakened with each repetition.

Moreover, to the extent that ostensible changes in the

information set on which the threshold was based

proved to be systematically biased or predictable, this

is an indication that information enabling such

predictions was available but unused. That is, if it

seems as though bnewQ information has been repeat-

edly telling us the same thing, it is likely that it is not

new at all; rather we have not been listening.

In general, this is precisely what we find in many,

if not most, fields of environmental regulation. A

pattern is established in which, with little information

to go on, minimal regulation is adopted. As studies are

conducted and evidence mounts, restrictions are made

tighter and tighter. In some cases, after the evidence

becomes incontrovertible, outright prohibitions are

enacted. Analysts of regulation sometimes survey

these trajectories and conclude that bscienceQ was

playing its appointed role in guiding public decision-

making, but this is mistaken. Regulations that are

constantly adjusted upward are systematically too low.

Regulators are failing to see that they are predictably

failing to anticipate future reassessments, and society

bears the cost–which may be substantial–over the

entire duration. (Harremoes, 2002).

Precaution in the sense advanced in this paper is a

product of our lack of understanding in a context in

which there is an evident pattern in the evolution of

our ignorance over time. This pattern should be

exploited to make the best possible predictions of

what our future state of knowledge will come to be,

and these in turn should provide the basis for

prudential regulation.

5. Implementation

As a meta-rule, the Precautionary Principle has ex

ante and ex post implications. The latter is more

straightforward: decision-making bodies should mon-

itor instances in which regulations are revised in the

light of new information. This could be as simple as

documenting all regulatory interventions attributable

to an agency over a number of years, and observing

the balance between decisions to intensify and relax.

If an imbalance appears that would be unlikely to

occur in a truly random process, and is not explained

by changing criteria, the agency would be called upon

to identify new procedures that would promote a more

efficient use of information. The sufficiency of these

reforms could be determined through continued

monitoring of decision outcomes.

But what procedures might these be? This raises

the question of ex ante measures to implement

precaution, and these are more difficult to specify at

a high level of generality. To orient ourselves, it will

help to review the movement toward fuller use of

information described in this paper. The most limited

use is that which relies only on statistically significant

results of empirical research—information that passes

the test of minimizing Type I error. Such an approach

excludes other findings whose Type I error may

exceed the cutoff normally employed in published

research, but which are nevertheless significant from

the standpoint of Type II error costs to public health

and the environment.

Standard decision theory advocates a shift toward

the incorporation of all findings that can be expressed

in the form of a probability distribution. Even

hypotheses of environmental risk with very high p

values (high likelihood that they are untrue) should be

entered into expected value calculations, with their

low probabilities multiplied by their (possibly high)

costs if they should prove to be correct. This is not

controversial from a theoretical standpoint, although it

is a difficult move to undertake for political reasons:

those who profit from activities that pose risks to

health and the environment have invoked bscienceQ(minimization of Type I error) as the only sound basis

for regulatory policy.

The Precautionary Principle, as characterized in

this paper, goes one step further by asking us to utilize

all available information so as to anticipate, to the best

of our ability, the judgment that would be made in the

future when the relevant issues are better understood.

This expanded information set includes the full range

of nonstandard and informal data which, whether or

not they qualify as research findings, would be of use

to someone attempting to predict the further evolution

of knowledge. Above all, this includes the past

trajectory of additions to our understanding that have

brought us to the present moment. In every field of

environmental policy, this points to the tendency for

researchers to discover new linkages between human

intervention and ecological response, new processes

that serve to integrate ecological systems, and reduced

Page 8: Evolving knowledge and the precautionary principle

P. Dorman / Ecological Economics 53 (2005) 169–176176

thresholds at which threats to human or ecosystem

health are consequential. Rationally, we ought to

expect that a portion of our current ignorance will be

replaced by future knowledge of this sort, and we

should continue to maintain this expectation until

there is no longer this predictable pattern to scientific

learning. Under the present circumstances, then,

greater ignorance in itself implies increased likelihood

of environmental risk.

This is the crux of the precautionary approach as

outlined in this paper. More schematically, we can say

that precaution, in this sense, is based on the

information employed in the expected value calculus

plus such additions as:

n the catalog of ongoing research projects, including

the hypotheses being tested and their potential

implications for risk assessment;

n theoretical grounds for suspecting potential risks,

even in the absence of empirical tests;

n research results pertaining to one element of a

complex system, even when little is known about

other elements more germane to a policy question;

n and known areas of ignorance–those aspects of the

problem about which it is known that nothing is

known–and their potential implications for risk in

light of what we now know about past ignorance.

This list points to a direction to follow, but it is

still too general to provide much guidance to

practical decision-making. What is needed is a

number of carefully analyzed retrospective cases,

identifying the additional sources of information that

precaution could have drawn on and the manner in

which they could have been used. Of course, for

purposes of control we should include instances in

which risks that were suspected in an earlier period

were later found to be illusory. As we perform such

analyses across a variety of potential health and

environmental impacts, biological, chemical and

physical mechanisms and levels of scientific under-

standing, we will be in a better position to formulate

precautionary procedures for the present and future.

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