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NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS

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Practiced with recycling, source reduction, and sustainable ... four main stages: raw material acquisition, manufacturing, recycling, & waste management ... – PowerPoint PPT presentation

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Title: NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS


1
NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS
  • A.J. DAVIDSON
  • SARAH DILLICK
  • NICOLE KIDWELL
  • HEATHER KOCHER
  • JEFF RICE
  • R. EDWIN RILEY
  • CAIT WINGFIELD

2
TOPICS BEING COVERED
  • ECONOMIOCS OF POLLUTION
  • ECONOMICS OF RECYCLING
  • NATURAL RESORCE ECONOMICS
  • ECONOMIC IMPACT OF E.P.A.
  • ENVIRONMENTAL ECONOMICS, EXTERNALITIES
  • SUSTAINABLE/ORGANIC FARMING
  • FARMLAND PRESERVATION

3
ECONOMICS OF POLLUTION
  • What is Pollution?
  • Special Case of Habitat Destruction
  • Chemical destruction rather than physical

4
TYPES OF POLLUTION
  • Air Pollution
  • Water Pollution
  • Solid Waste Pollution

5
INDUSTRIAL AIR POLLUTION
  • Release of particles into the earths atmosphere
  • caused by the burning of fuels for energy
  • Release of noxious gases
  • caused by chemical reactions

6
INDUSTRIAL WATER POLLUTION
  • Contamination of water by foreign matter
  • Effects oceans, surface, and groundwater
  • Direct and Indirect
  • direct is contaminants going straight into
    waterway
  • indirect is a result of rainwater washing
    pesticides into water supply

7
SOLID WASTE POLLUTION
  • Disposed of two ways
  • landfills
  • incineration
  • Rain water hits the decomposing material of
    landfill and carry it to waterway
  • Sulfur Oxide, and nitrous oxide given off while
    burning

8
LEGESLATION TO PROTECT ENVIRONMENT
  • The Clean Air Act (1970)
  • Established National Ambient Air Quality
    Standards
  • The Federal Water Pollution Control Act(1972)
  • Restore and Maintain the Chemical, physical,
    and biological integrity of the Nations
    Waterways
  • The Resource Conservation and Recovery Act(1976)
  • Aimed to reduce the amount of hazardous waste
    generated

9
MEANS TO COMBAT INDUSTRIAL POLLUTION
  • STACK SCRUBBERS FOR SMOKESTACKS
  • FILTRATION SYSTEM FOR WATER SUPPLY
  • COLLECTION AND TREATMENT SYSTEM FOR WASTE

10
WHAT DOES THIS MEAN FOR CONSUMERS?
  • Lower wages for employee
  • lower standard of living
  • Higher production costs
  • higher cost at the counter
  • lower demand for the product
  • less profit for the company

11
CONSUMER ENERGY USE AND POLLUTION
  • Cause pollution from energy use in homes
  • Cause pollution from vehicles they drive
  • U.S. is responsible for 25 of world pollution

12
GREEN ENERGY
  • GREEN ENERGY- AN ENERGY THAT IS PRODUCED IN WAYS
    THAT REDUCE POLLUTION AND ENVIRONMENTAL IMPACTS
  • more efficient energy production
  • renewable and cleaner fuels
  • alternative energy sources

13
ALTERNATIVE ENERGY SOURCES
  • SOLAR POWER
  • USE OF THE SUNS RAYS TO POWER HOMES
  • RELITIVE LOW COST TO SET-UP
  • WIND POWER
  • CAPTURE THE WINDS POWER FOR ENERGY USE

14
OTHER WAYS CONSUMERS COMBAT POLLUTION
  • RECYCLING
  • BIO-FUEL
  • HYBRID VEHICALS
  • ENERGY EFFICIENT APPLIANCES

15
CONSUMER ENERGY SAVINGS
16
IN CONCLUSION
  • Pollution is inevitable
  • Industry as well as consumers can only utilize
    resources available to minimize the destruction
    of the environment
  • By taking these simple measures consumers can
    ensure environmental harmony

17
The Economics of Recycling
  • AJ Davidson

18
Things we Recycle
  • The Big Four
  • Paper, plastic, glass, and aluminum.
  • Other Metals
  • Tin, Copper
  • Automotive
  • Batteries, engine oil.

19
Why we Recycle
  • To Preserve the Resources
  • The big four are the resources that are the most
    exploited
  • Save companies from expanding their mining
    operations
  • Reduce the pollution caused by the mining

20
Where is the Money
  • Recyclers
  • Oligopoly
  • Selling raw materials
  • to producers
  • Exports
  • Collection contracts
  • People
  • Cash in
  • discounts
  • Expenses
  • Labor
  • Sorting
  • Fuel

21
The Market
  • Recycled Goods
  • Large Demand
  • Recycled Paper
  • Aluminum Cans
  • Materials
  • cheaper
  • Aluminum
  • Copper

22
Conclusion
  • Recycling
  • Prevents excess pollution
  • Preserves natural resources
  • Provides cheap resources
  • Just about anything can be recycled

23
Natural Resource Economics
24
Introduction
  • Economies use natural resources to make products
  • Resource degradation occurs when a source is
    overused
  • Degradation not accounted for in GDP

25
Air
  • Essential to life on Earth
  • Impacts of Industrial and Agricultural Revolution
  • Health problems from poor air quality
  • Good air quality has valuable benefits

26
Water
  • Limited resource 70 used for irrigation
  • Freshwater is unevenly distributed
  • Water is shared by consumers/ nations
  • Water use regulations in the High Plains

27
Forest
  • Timber is renewable with sustainable practices
  • Provide many ecological benefits
  • Watershed protection
  • Habitat for plants and wildlife
  • Air purification and carbon sinks

28
Land Use
  • Agriculture accounts for 38 of world land use
  • Soil management and conservation practices
    maintain productivity
  • Urban sprawl into farmland

29
Fossil Fuels
  • Nonrenewable resource
  • Provide more than half of electricity in U.S.
  • Provide nearly all the transportation fuel in
    U.S.
  • Suspected factor of global warming

30
Conclusion
  • Population growth has increased demands for
    natural resources
  • Many of the resources are limited
  • Sustainable use must be practiced or renewable
    alternatives developed to offset increasing
    demand for natural resources

31
Sustainable Farming
  • Stability of a farming system overtime
  • Resilience return to their original states
    rapidly and reliably.
  • Resistance involves the likelihood that a system
    will respond to a disturbance.
  • Drought, Pest Invasion
  • Meets the needs of todays booming generation
    without compromising future generations abilities
    to farm.
  • Budgeting
  • Economic Viability

32
Natural Resource and Environmental
EconomicsSustainable/ Alternative/ Organic
Farming
33
I view the farmer who wants to leave the land in
better shape when he leaves it to the next
generation as the role model for civilization.
Charles Walters, Jr.
34
Alternative Farming
  • Locally sold foods use less energy and money due
    to transportation costs.
  • Average conventional fruits and vegetables travel
    1500 miles before they reach there point of
    destination.
  • Reduce input costs
  • Preserve Natural Resources
  • Protect Human Health

35
Organic Farming
  • Managed to respond to site-specific conditions by
    integrating cultural, biological, and mechanical
    practices that foster cycling of resources,
    promote ecological balance, and conserve
    biodiversity (USDA).
  • Relies on
  • - Crop Rotations
  • - Green Manure
  • - Biological Pest Control
  • - Mechanical Cultivation
  • Controls
  • - Pests
  • - Weeds
  • - Adds productiveness to the soil

36
Organic Foods Production Act
  • Established in 1990 to make a standard to what is
    considered Organic Food.
  • Organic producers is rapidly increasing
  • Sales of Organic foods rose from 6 billion in
    2000 to 10.4 billion in 2003
  • Increasing consumer demands are increasing supply
    amounts making organic foods cheaper for
    consumers.

37
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38
Organic Food Sales
39
Future of Farming
  • There is expected to be an increase in the
    environmentally friendly ways of farming
    throughout the next several years.
  • As subsidies become greater and prices continue
    to rise we should see more and more people
    switching to new ways of farming to protect the
    land and the environment in which we live in.

40
  • Economic Impact of EPA

41
Environmental Protection Agency
  • Protect human health and provide a cleaner
    environment
  • Develop and enforce regulations
  • Performing environmental research
  • Further environmental education
  • Publish information they obtain
  • Repairing the damage done prior to 1970

42
Biggest environmental issues
  • Prevent global warming
  • Laws
  • Pollution Prevention Act (PPA)
  • Clean Water Act (CWA)
  • Clean Air Act (CAA)

43
Pollution Prevention Act
  • Focused the American industry, government, and
    public attention on reducing the amount of
    pollution through cost-effective changes in
    production, operation, and raw materials used
  • Practiced with recycling, source reduction, and
    sustainable agriculture

44
Clean Water Act
  • Regulate pollutants going into the waters of U.S.
    quality standards for surfaces waters
  • Set waste-water standards for industry
  • Illegal to expel pollutants into navigable waters
  • Permits control limited discharge by industrial,
    municipal, and other facilities
  • Example Erin Brockovich

45
Clean Air Act
  • Regulate hazardous air emissions from stationary
    mobile sources
  • protect public health welfare
  • major sources
  • -stationary source that emit substantial amounts
    of air pollutants per year
  • area source
  • -local or minor sources that emit minor pollutants

46
Climate change
  • Climate economic analysis
  • -analyze the economic environmental effects of
    potential climate changes
  • four main stages raw material acquisition,
    manufacturing, recycling, waste management

47
Economic Impact Analyses
  • Describes quantifies the reallocation of
    societys resources in response to a regulatory
    action
  • Industry or process-specific technology-based
    rules for particulate matter, ozone, nitrogen
    oxides, sulfur dioxide, lead, etc.
  • Evaluation impacts of a specific standard

48
Conclusion
  • EPA not only protects repairs the environment,
    but educates people about the causes effects
  • Huge economic impact considering the depleting
    ozone layer major pollutants contributing to
    global warming

49
Environmental Economic Externalities
50
Externalities
  • Over spill effects arising from the production
    and or consumption of gods and services, which
    there is no appropriate compensation paid for the
    effect of the usage
  • Create large unnecessary expenditures
  • Do not effect individual financially, but society
    as a whole
  • Create separation between the private costs and
    the social costs of producing product

51
Negative ExternalitiesOf Consumption
  • Consumers create externalities when they purchase
    and consume goods and services
  • Examples would include pollution from
    automobiles, aircraft, litter, noise population,
    smoking, and alcohol abuse

52
Negative ExternalitiesOf Consumption
53
Negative Externality For Production
  • Producer only interested in maximum profits
  • Only take into account private costs and the
    private benefits associated with creation of
    product
  • Market failure
  • Example would include concentrated use of
    chemical fertilizers

54
Negative Externalities Of Production
55
Positive Externalities
  • Created when the marginal social benefit of
    production and or consumption exceeds the
    marginal private benefit
  • Examples would include industrial training by
    firms, researching into new technologies,
    education, health provision and Healthcare

56
Positive Externalities
57
Conclusion
  • Whether through production or consumption, the
    consumer and the producer is in control of extra
    costs
  • Government regulations vs. value of product
  • Never ending battle

58
Farmland Preservation
59
Farmland Preservation Introduction
  • Simple Complex
  • Urban expansion
  • Macroeconomics
  • Microeconomics
  • Approaches

60
Farmland preservation Cont.
  • Urban Sprawl
  • Land Use?
  • Impermanence Syndrome

61
Farmland Preservation
  • Macroeconomics
  • Microeconomic

62
Microeconomics Success
  • Key Elements
  • Annual gross outputs exceeding 50 million
  • Agricultural zoning ordinances
  • Urban growth boundaries
  • Easements
  • Focus on protecting farmland to drive land use
    planning

63
Approaches
  • Bottom-up
  • Initiated by landowner
  • Opportunistic
  • Top-down
  • Government initiated
  • Allows for prioritization
  • More pro-active
  • Law of diminishing marginal return

64
Farmland Preservation Conclusion
  • Federal actions
  • State actions
  • Local actions

65
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