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Frisch, Thomas; Laser, Stefan; Matthäus, Sandra; Schendzielorz, Cornelia

Article It's worth the trouble: On valuation studies and climate change

economic sociology_the european electronic newsletter

Provided in Cooperation with: Max Planck Institute for the Study of Societies (MPIfG), Cologne

Suggested Citation: Frisch, Thomas; Laser, Stefan; Matthäus, Sandra; Schendzielorz, Cornelia (2021) : It's worth the trouble: On valuation studies and climate change, economic sociology_the european electronic newsletter, ISSN 1871-3351, Max Planck Institute for the Study of Societies (MPIfG), Cologne, Vol. 22, Iss. 2, pp. 10-14

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cially meat), waste – remains the main source of glob- al greenhouse gas emissions. In this respect, our goal It’s worth the is not to present a ready-made theoretical framework or agenda but to identify pathways for studying cli- mate change through the lens of valuation. Therefore, trouble. we begin by turning to the example of decarboniza- tion. From a valuation perspective, decarbonization can be framed as a complex and powerful process of On valuation de- and revaluation that triggers a series of questions such as: How are climate-related risks measured, ob- studies and jectified, and translated into economic value? How do corporations, investors, regulative bodies, or civil so- ciety engage in processes of assessing and communi- climate change cating the value of a decarbonized economy? Which value judgments are inscribed and negotiated in re- Thomas Frisch, Stefan Laser, Sandra Matthäus and cent proposals of a “New Green Deal”? Drawing on Cornelia Schendzielorz that discussion, we summarize the valuation perspec- tive by working out three focal points and illustrate their benefits for climate change research.

Studying climate change through Setting the scene: Decarbonization as the lens of valuation a process of de-, re- and evaluation

his article introduces the field of valuation studies The (deep) decarbonization of the economy is one of and illustrates the theoretical and methodological the most prominent answers to the call for mitigating potential it offers for analyzing climate change. the devastating effects of temperature increase, TValuation studies (VS) is still an emerging, yet fertile re- sea-level rise, or extreme weather events. In its very search field that explores valuation practices and value essence, it requires nothing less than a radical trans- orders as critical sites of social (trans-)formation (Lamont formation of the energy system away from coal, oil, 2012). Valuation here can be defined as “any social prac- and natural gas towards other sources. History re- tice where the value or values of something is established, minds us that energy transitions occur over an ex- assessed, negotiated, provoked, maintained, constructed tended period of time and at different speeds accord- and/or contested” (Doganova et al. 2014, 87). In the last ing to the sector or specific regions. Generally, it is not decade, VS has consolidated as an interdisciplinary field a matter of a few decades, but spans over more than a of study that critically reflects the plurality of valuation century (Fouquet 2010). Decarbonization, in contrast, practices. The field shares many features with economic needs to be faster and addressed globally. Particularly sociology and brings together several researchers with since the Paris Agreement in 2015 and the Sustainable such a disciplinary background. However, the status of Development Goals (SDGs), it has grown into a pow- economic valuation practices – in particular its relation to erful political project. competing value orders, economies of worth and practic- Take, for example, the European Union and its es as, for example, civic order of worth and practices (Bol- programmatic statement, as published in the recent tanski and Thévenot 2006) – is a controversial point of communication from the Commission on the Green discussion in the field. New Deal: “The production and use of energy across Investigating valuation practices helps to attune economic sectors account for more than 75% of the to the economic processes that are at the core of the EU’s greenhouse gas emissions,” the Commission ar- climate crisis, and to exploit one particular avenue gues. From this follows: “A power sector must be de- economic sociology has to offer to unpack climate veloped that is based largely on renewable sources, change (Engels 2020), namely to define valuation complemented by the rapid phasing out of coal and practices as the object of the study. The strength of the decarbonizing gas.” (European Commission 2019, 6) valuation perspective becomes apparent when exam- The European Commission emphasizes two import- ining, for example, the enduring persistence of a fossil ant things here: fossil fuels are made responsible for fuel-based economy, which – besides other factors global warming and they need to be replaced by re- such as transportation, agriculture, and food (espe- newable energy sources. This quote illustrates how the economic sociology_the european electronic newsletter Volume 22 · Number 2 · March 2021 It’s worth the trouble by Thomas Frisch, Stefan Laser, Sandra Matthäus and Cornelia Schendzielorz 11 valuation of one thing (renewable energy sources) is reducing emissions as required by the calculations of directly related to the devaluation of another (fossil climate scenarios, such as the ones published by the fuels). Often, there are implicit valuations apparent, as Intergovernmental Panel on Climate Change (IPCC). in this context: the devaluation of another alternative, In the context of this inertia, it is interesting to consid- namely consuming or trying to consume (radically) er a development that Chiapello (2020) called the fi- less energy. nancialization of climate policy in the last edition of Despite the clarity of this programmatic state- this Newsletter. In her analysis of an increasing impor- ment, its translation into concrete policies and practi- tance of financial markets for climate policy issues, she cal matters is confronted by a set of obstacles. For the understands green finance as the most recent configu- sake of brevity, we will only point to three. First, there ration of a progressive privatization of global environ- are different assumptions of what should be classified mental policy that is full of limitations and far from as a “renewable source,” for instance if nuclear power is being a universal remedy. Indeed, the delegation of regarded as one. When procedures are put in place to responsibility for climate actions from political insti- assess which energy sources are worth considering, thus Thomas Frisch is a PhD candidate in Sociology at the University of Hamburg. Since March 2020 he pushing the classifications has been working as a Research Fellow in the project “D°GREES – Decarbonization: Global Research “alternative” vs ­“regenerative,” on Effects in Enterprises and Societies,” one of fourteen subprojects of the Cluster of Excellence they implicitly carry evalua- “Climate, Climatic Change, and Society (CLICCS).” In his PhD thesis he investigates practices of tions and re-evaluations of valuation in the context of social change. [email protected] energy sources. Second, de- spite a relatively long history Stefan Laser is a postdoc in the Faculty of Social Sciences at Ruhr University Bochum. He completed of climate policy directed at his doctorate in Kassel under Jörn Lamla and Tanja Bogusz. His sociological research unraveling the decarbonization, fossil fuels global value chains of electronic waste is condensed in the book Hightech am Ende. Über das globale Recycling von Elektroschrott und die Entstehung neuer Werte [Hightech at the end: On the global remain at the heart of energy recycling of electronic waste and the creation of new values] (2020). This is a contribution to both matters. This carbon lock-in valuation studies and waste studies, two international and interdisciplinary fields. His research is also (Unruh 2000) can be ex- influenced by approaches from Science and Technology Studies, and his publications explicitly draw plained to a large extent by on and address discussions of economic sociology. [email protected] the long and cost-intensive innovation cycle of most car- Sandra Matthäus is a PhD student at the Humboldt University of Berlin, where she is working on bon-intensive industries but her thesis, “Self.Worth.Feelings. Towards the Legitimate Subject Structure of (Late) Modernity,” also by fossil fuels’ role for supervised by Andreas Reckwitz. Since 2019 she has also been a Research Fellow at the Chair of stabilizing production sys- Social Theory at Chemnitz University of Technology, leading the subproject on “cultured meat” tems (e.g., food, agriculture, within the research project “Disruptive Technologies. A Sociological Study on the Reconfiguration as well as whole ways of liv- of Society,” which is funded by the Thyssen Foundation. [email protected] ing and consumption and Cornelia Schendzielorz is a postdoc at the Humboldt University of Berlin and the German Centre cognitive models). Although for Higher Education Research and Science Studies. She completed her doctorate in Freiburg under fossil fuels have been devalo- the supervision of Ulrich Bröckling and Tanja Bogusz, deciphering processes of subjectivation in rized in decarbonization dis- vocational training. Since 2018 she has been a research assistant at the Humboldt University of Berlin course, they are still in use in the field of science studies, researching evaluation practices in science and peer review processes. and thereby remain an eco- [email protected] nomically and financially ex- ploitable value. Third, a ma- All authors are members of the scientific network “Towards a society of valuation?”, which is funded by jor obstacle to a global solu- the German Research Foundation (DFG). tion is presented by the fact that the share of greenhouse gas emissions is distribut- tutions to the private sector poses some delicate ques- ed unequally between countries and within different tions, including whether it is a good idea to put the segments of the population. Under these conditions, search for solutions into the hands of those who played the effect of carbon inequality and the need for climate a large part in causing the current climate crisis. justice take high priority. The terms of this justice, of Regardless of how these questions are answered, course, are deeply intertwined with social-economic as it is essential to take a closer look at the role of finan- well as ethico-political values and their justification in cial markets and global corporations, i.e., it is worth- globally heterogeneous orders of worth. while investigating how they take action and might or With these obstacles for political implementa- might not transform their business models (Wade and tion in mind, it is striking but not surprising that many Rekker 2020). The last two decades saw an exponential of the “mitigation” or climate policies have failed in growth of instruments, such as reporting standards for economic sociology_the european electronic newsletter Volume 22 · Number 2 · March 2021 It’s worth the trouble by Thomas Frisch, Stefan Laser, Sandra Matthäus and Cornelia Schendzielorz 12 climate-related activities1, initiatives and coalitions parative practices at the heart of ranking lists, but they among businesses2, and events with diverse stakehold- can also be mobilized as devices on their own, minus ers that all feed into the debate on a (deep) decarbon- putting singularized entities into hierarchies. They, ization of the economy. As a result, we are confronted like rankings, tend to be assessments, based on previ- with a highly dynamic field, a proliferation of diversi- ously made categorizations. For instance, the financial fied actors with distinct interests and manifold inter- performance of a public company can be rated to facil- relations between them. Getting back to understand- itate the decision-making of investors. In this context, ing the call for a decarbonized economy as a process of a growing interest in non-financial performance indi- de-, re- and evaluation, we argue that a valuation per- cators – such as Environmental, Social and Gover- spective is well-suited for investigating how different nance criteria (ESG) or climate-related disclosure approaches and understandings of value interact un- practices – presents a perfect empirical example for der these complex and uncertain conditions (see also studying how non-economic values (such as biodiver- Engels and Wang 2018). sity or the reduction of emissions) are translated into economic logics. Prizes, finally, are particular types of rankings, where the “winner” of a comparative en- How can valuation studies con- deavour gets all the attention and praise. VS has pro- vided various studies on the cultural significance of tribute to climate change research? prizes (e.g., regarding movies Helgesson and Muniesa 2013), but this is also of importance for climate change The lowest common denominator in the heteroge- measures, especially considering winner-take-all mar- neous field of VS could be described as an awareness kets and the assessments of experts that influence such that the creation and attribution of value(s) is much markets (Lamont 2012). Actors work on and with val- more complex than their linguistic denomination, nu- uation devices to stabilize social order. VS suggests merical numbering, or designation by means of key scrutinizing both the designers and users of these de- figures suggests. The following three analytical per- vices. The methodologies thus explored can help to spectives from VS could be of particular value to reveal the procedure of assessments and thereby en- studying matters of climate change and their intersec- able to seize explicitly and implicitly inscribed values tion with economic themes: investigating the proces- and interests, and to address possible ambivalences, suality and performativity of valuation practices, un- discrepancies or even antagonisms. ravelling the material embeddedness of value, and Second, climate change is a very material matter engaging with the contested nature of particular valu- (e.g., Latour and Weibel 2020; Knox 2020), which can ations. be approached through VS by unpacking values that First, scholars in the field suggest working out are embedded in natural, technological as well as socio- the processuality and performativity of value determi- cultural environments (Moore and Patel 2018; Geden nation processes. Valuation practices provide an order 2016). The approach urges scholars to consider mate- for decision-making processes and establish hierar- riality and nature as environmental conditions or, in chies. At the centre of such research endeavours are fact, as co-producers together with human action, so- hands-on valuation devices, that is, rankings, ratings, ciality, and its symbolic meaning. This is an endeavour and prizes. Some scholars, such as Stark (2020), point to challenge and critically reflect dichotomous fronts to the fundamentally different logics behind these de- and asymmetries between subject/object, nature/cul- vices, which inform their specific performativity, i.e., ture, and the like. We see this as a constructive per- their effects as a form of social action. Rankings then spective to grasp an interdisciplinary, multi-sited, and are the outcome of comparisons, where entities are highly complex phenomenon such as climate science. displayed in a clear hierarchy based on predefined Various subtle and not-so-subtle valuation practices characteristics. Comparisons work in two ways: they shape the making, consideration, and so-called appli- aim at producing similarities based on decisions about cation of climate research. “Carbon capture and stor- which entities are compared with each other and then age (CCS)” – i.e., efforts to transport carbon dioxide to produce evaluative differences among those entities storage sites in deep underground reservoirs instead of (Sauder and Espeland 2009). Consumers, for example, the atmosphere – is one compelling example that em- can compare energy suppliers – or better those having phasizes this issue. CCS is controversial but also been categorized as such – based on their prices and charged with hope, for example, when positioned for sustainability commitment, while the new metering the reappraisal of entire landscapes. Consider the Ruhr devices serve as powerful intermediaries that aim to district in North Rhine-Westphalia, Germany, a for- rank the consumer’s very own behaviour in real-time mer hub of hard coal mining. It used to fuel the indus- (Kragh-Furbo and Walker 2018). Ratings are the com- trialization of a vast economy. After “phasing out” the economic sociology_the european electronic newsletter Volume 22 · Number 2 · March 2021 It’s worth the trouble by Thomas Frisch, Stefan Laser, Sandra Matthäus and Cornelia Schendzielorz 13 coal industry and shutting down the last mine in 2018, are often deeply embedded in specific socio-material scientists, planners, and investors have been screening contexts, a critical investigation from a VS perspective the old underground facilities from the vantage point may allow analyzing which values are promoted, con- of carbon-capturing and similar strategies in order to tested, and legitimized, which ones interfere with each redirect or rethink emissions from industrial activi- other, and how these values are negotiated and weighed ties. However, the discussion is complicated by the against each other in the light of an upcoming deci- “storage” and “capturing” of old groundwater, which is sion. These insights may help to reflect on the design seen as a constant danger and overshadows “progres- and reorganization of climate-relevant assessment sive” storage technologies. Some tunnels, deep in the procedures, such as adaptation expenditures in differ- earth, are nonetheless already used as thermal energy ent countries and settings (cf. climaps.eu 2018; see sources to supply offices and homes with heat (see also Wissman-Weber and Levy in this Newsletter). www.gw-ruhr.rub.de). The underground infrastruc- Here, VS can directly connect with discussions from tures have to be shielded to ensure proper functioning, French pragmatism and convention theory, since there while other-than-human interferences are taken into are plenty of thematic and personal overlaps. In On consideration via experiments and models. In other Critique, Boltanski (2011) proposed looking at cri- words, it turns out that different production systems tique in two ways: One, social scientists should ana- and their temporalities are intertwined in a complex lyze and take seriously the actors and their own criti- way, meeting underground. Hundreds of millions of cal capacities. Learning from their entanglements is years old subterranean mountains of the carbon age presented as an invaluable source for critical reflec- are, once again, being treated with sophisticated mea- tion, which in a second step can be used to enlarge sures, involving the mobilization of various actors, upon broader normative questions. This two-fold ap- very particular forms of knowledges, and with conse- proach may help to inquire about the performance of quences that are difficult to comprehend. The example valuation devices as well as about its legitimacy more of the Ruhr district here points to a large, yet still broadly. In this regard, a sound procedurality to which sparsely researched topic: wasting practices as essen- the participants comply, implying the circumspective tial parts of economic actions, infrastructures and sys- involvement of heterogenous actors, can serve as a tems. Put differently, the entanglements between waste powerful means to produce and provide legitimation and value offer fruitful sites for creative and critical for decisions reached. However, such an analysis can investigations (Greeson et al. 2020). VS provides tools also contribute to a fundamental redesign or rebuttal to examine such processes in detail, but empirical of proposed reforms, of which there are many in cli- studies also help develop the field’s perspective. mate change politics. Third, valuation is open to contestation, subject to negotiation and fundamental for legitimizing deci- sions, all of which can be put to the test. For instance, It’s worth the trouble from a VS perspective attempts to mitigate climate change such as emission trading can be understood as Valuation Studies offers a promising heuristic for the a “social process” (Abott 2016) of assessment, in which social sciences to engage in climate change transfor- a value is assigned to the assessed object, namely the mation, perhaps even to become involved in the fur- emission unit. Social processes are negotiation pro- ther course of the transformation itself. We have intro- cesses in which different representatives face each oth- duced three entry points for future research: investi- er in their respective roles with their specific interests. gating the processuality and performativity of valua- In general, the interests, goals, and concerns of the tion practices, unravelling the material embeddedness various participants are in conflict, when for example of value, and engaging with the contested nature of delegates of nation-states, lobbyists of affected compa- particular valuations. At the same time, the discussion nies, and administrations that organize and align these provides a solid ground for exploring fundamental negotiation processes come together. It should not be theoretical-methodological questions that advance forgotten that these actors also have their own concep- the social sciences in a more general way. It’s worth tions of how these processes can be successfully coor- engaging with the intricacies of climate change, and dinated and moderated. As these kinds of assessments valuation studies may supply means to do so.

economic sociology_the european electronic newsletter Volume 22 · Number 2 · March 2021 It’s worth the trouble by Thomas Frisch, Stefan Laser, Sandra Matthäus and Cornelia Schendzielorz 14

Endnotes

1 Examples are the Greenhouse Gas (GHG) Protocol, the Carbon 2 For instance, the World Business Council for Sustainable Develop- Disclosure Project (CDP), the Global Reporting Initiative (GRI), or ment (WBCSD), the Science Based Targets Initiative (SBTi) or the the Task Force on Climate-related Financial Disclosure (TFCD). We Mean Business Coalition.

References

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economic sociology_the european electronic newsletter Volume 22 · Number 2 · March 2021