Standard economic metrics fail to account for animal welfare costs and benefits - new approaches to welfare economics and national accounting could transform policy.
The absence of animal welfare from economic accounts means that suffering is effectively subsidised by failing to price its cost into production. A chicken raised in intensive conditions whose welfare costs are excluded from pricing appears cheaper than a higher-welfare alternative, distorting market signals. Welfare economics research is developing tools to value welfare states and their improvements. Integration of animal welfare into national accounting frameworks would transform policy by making the true cost of intensive animal use visible. This is a frontier area with major potential welfare impact.