crandles,
Well, it should be obvious, even if we're just talking in absolutes.
Is it obvious to a young person that someday they will grow old and die, if something else doesn't first hasten that fate?
For an economy, one person can be replaced by another person of a later generation. (Assuming we don't run out of food, ability to reproduce etc. Also reality may cause oscillating population rather than slow approach to maximum carrying capacity and slow decline in growth rate as carrying capacity and everything that can be discovered is already known.)
Yes it is obvious that I will die. However, I don't see that as an argument that world domestic product or even my village's domestic product will fall.
I think it might be possible to change things so that there is a better accounting of what is in a person's own self interest.
Absolutely agree. (Though this does create a measurement problem.)
I hope we don't get to the point where self interest might include self-destructive actions. I am not sure what point you are trying to make there.
What does economics tend to leave out through simplification to dollars rather than utility?
I see 3 points we are interested in:
1. Waste disposal of carbon to atmosphere as an externality to production companies.
The standard economic answer is to create a tax to build in the cost to the firms concerned.
2. Fossil fuel are a limited resource. While they might build up again over millions of years, essentially for the next few generations, once they are gone they are gone. However, economics fails to account for loss of capital for the depletion of the resource. This is a stupid breaking of the idea of capital accumulation. A tax on use would again be a sensible economic response.
3. People give to charity. There is some utility from feeling you are doing something about problems. If there is utility to be gained from living in a world where appropriate action is carried out to avoid pollution harming the environment. In such a situation should the government aims be directed more at maximizing utility rather than GDP, and if so how? Again, I suggest it is likely to be a tax on harmful activities.
I am of the opinion that arguments against a tax that just amounts to self interest shouldn't carry much weight. Perhaps that is why it is often dressed up as something else.