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The structural condition where markets optimise signals that represent value without requiring continuity of the underlying system. Price signals proximate value but do not encode regeneration obligations. Markets clear on proxy variables while value variables—capabilities, substrates, institutions—remain outside the optimisation function.
Commodity markets optimise for extraction cost and yield but are structurally blind to soil degradation, aquifer depletion, or biodiversity loss. The proxy (price) clears while the value (productive capacity) erodes.
MEC Section 3