> All else being equal (i.e., in steady state, low-innovation, markets with healthy competition), the purchase price of something is just labor + energy costs of mining/recycling the raw materials, and manufacturing, with a small profit margin tacked on top.
That would be if markets were efficient :).
As it is, the costs of goods are still dominated by middle men - people who have nothing to do with neither manufacturing nor selling the thing to the end customer. Prices today aren't good signals, because they're pretty arbitrary - shaped by supply/demand in long term, yes, but in short term directed by various business tricks (like market segmentation, brand value, contracts, etc.).
Your Tesla example actually shows it pretty well - in order to quantify its environment impact, you need to know at least that a) Tesla is electric, b) where your energy comes from.
Price would be a good proxy for a lot of things, if it wasn't so messed up by various parties trying to profit at each level of the supply chain.
That would be if markets were efficient :).
As it is, the costs of goods are still dominated by middle men - people who have nothing to do with neither manufacturing nor selling the thing to the end customer. Prices today aren't good signals, because they're pretty arbitrary - shaped by supply/demand in long term, yes, but in short term directed by various business tricks (like market segmentation, brand value, contracts, etc.).
Your Tesla example actually shows it pretty well - in order to quantify its environment impact, you need to know at least that a) Tesla is electric, b) where your energy comes from.
Price would be a good proxy for a lot of things, if it wasn't so messed up by various parties trying to profit at each level of the supply chain.