Losing a certificate

Abstract

The article discusses the ethical implications of purchasing certificates that represent a positive impact, such as donating money to charity or volunteering. It argues that losing a certificate should be viewed as if it undid the positive impact of the associated project. The article suggests that the negative impact of selling a certificate is equivalent to the impact of undoing the activity represented by the certificate. It also argues that the economic rationale of this decision-making guideline is to ensure that the equilibrium price of a certificate is simultaneously equal to the marginal cost of achieving the associated impact and the marginal donor’s willingness to pay for that impact. The article concludes that in some sense, a consequentialist should always take the money offered for a certificate, but if the offer is too low, it may be an indication that the seller should give the money back immediately. – AI-generated abstract.