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Environmental Economics, Politics, and Worldviews

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Title: Environmental Economics, Politics, and Worldviews


1
Environmental Economics, Politics, and Worldviews
  • Chapter 17

2
Core Case Study Rescuing a River
  • Nashua River the filthiest river
  • Marion Stoddart developed a restoration plan and
    won over state officials
  • Successes
  • Ban dumping
  • Treatment plant
  • Beautification
  • Community involvement

3
Individuals Matter Marion Stoddart
Fig. 17-1, p. 401
4
17-1 How Are Economic Systems Related to the
Biosphere?
  • Concept 17-1 Ecological economists and most
    sustainability experts regard human economic
    systems as subsystems of the biosphere and
    subject to its limiting factors.

5
Resources Supporting Economic Systems
  • Economics
  • Market-based systems interact through sellers and
    buyers
  • Supply and demand determines prices
  • Three types
  • Natural resources
  • Human resources
  • Manufactured resources

6
Three Types of Resources
7
Natural Resources
Goods and Services
Human Resources
Manufactured Resources
Fig. 17-2, p. 403
8
Economic Importance of Natural Resources
  • Neoclassical economists
  • Ecological economists
  • Environmental economics takes middle ground
  • Some forms of economic growth discouraged
  • Environmentally sustainable economy
    eco-economy

9
Strategies to Transition to Eco-economy (1)
  • Indicators that monitor economic and
    environmental health
  • Full-cost pricing
  • Eco-labeling
  • Phase out of harmful government subsidies and tax
    breaks

10
Strategies to Transition to Eco-economy (2)
  • Decrease income and wealth taxes
  • Increase taxes on pollution, resource waste, and
    environmentally harmful actions
  • Innovation-friendly regulations
  • Tradable permits
  • Selling of services instead of things

11
Ecological Economics
12
Solar Capital
Goods and services
Economic Systems
Heat
Production
Natural Capital Natural resources such as air,
land, soil, biodiversity, minerals, and energy,
and natural services such as air and water
purification, nutrient cycling, and climate
control
Depletion of nonrenewable resources
Degradation of renewable resources (used faster
than replenished)
Consumption
Pollution and waste (overloading natures
waste disposal and recycling systems)
Recycling and reuse
Fig. 17-3, p. 403
13
Components of Environmentally Sustainable
Economic Development
14
Production of energy-efficient fuel-cell cars
Underground CO2 storage using abandoned oil wells
Forest conservation
High-speed trains
No-till cultivation
Deep-sea CO2 storage
Solar-cell fields
Bicycling
Wind farms
Cluster housing development
Communities of passive solar homes
Landfill
Recycling plant
Water conservation
Recycling, reuse, and composting
Fig. 17-4, p. 404
15
17-2 How Can We Use Economic Tools to Deal with
Environmental Problems?
  • Concept 17-2A Using resources sustainably will
    require including the harmful environmental and
    health costs of resource use in the market prices
    of goods and services (full-cost pricing).
  • Concept 17-2B Governments can help improve and
    sustain environmental quality by subsidizing
    environmentally beneficial activities and by
    taxing pollution and wastes instead of wages and
    profits.

16
External Costs
  • Market price leaves out environmental and health
    costs associated with its production
  • Goods and services include external costs
  • Excluding external costs
  • Hinders development of green goods and services
  • Promotes pollution
  • Fosters waste and environmental degradation

17
Use of Environmental Economic Indicators
  • Gross domestic product (GDP) does not measure
    environmental degradation
  • Estimating the value of natural capital
  • Genuine progress indicator (GPI) monitors
    environmental well-being

18
Genuine Progress Indicator

  • -

Genuine progress indicator
Benefits not included in market transactions
Harmful environmental social costs
GDP
19
Comparison of GDP and GPI
Fig. 17-5, p. 406
20
Include Harmful Environmental Costs in Prices of
Goods and Services
  • Environmentally honest market system makes sense
  • Not widely used
  • Wasteful and harmful producers would go out of
    business
  • Difficult to estimate environmental costs
  • Most consumers do not connect environmental costs
    with purchases
  • Government action needed

21
Eco-labeling
  • Encourages companies and consumers to go green
  • Programs in Europe, Japan, Canada, and U.S.
  • Used to identify fish caught by sustainable
    methods

22
Reward Environmentally Sustainable Businesses
  • Encourage shifts
  • Phase out harmful subsidies and tax breaks
  • Phase in environmentally beneficial subsidies
  • Unknowingly, Americans pay
  • 2,500 per year in harmful subsidies
  • Another 1,000 in environmental degradation
  • Additional health costs

23
Environmental Taxes and Fees
Fig. 17-6, p. 408
24
Tax Pollution and Waste
  • Green taxes discourage pollution and waste
  • Current tax system
  • Discourages jobs and profit-driven innovation
  • Encourages pollution, resource waste, degradation
  • Tax shift towards green taxes needed

25
Encouraging Innovations
  • Regulation
  • Laws command and control
  • Incentive-based regulations
  • European experience positive for
    innovation-friendly regulations

26
Use of the Marketplace
  • Incentive-based model
  • Government place caps on total pollution levels
  • Tradable pollution
  • Resource-use permits
  • Shown to reduce pollution

27
Trade-offs Tradable Environmental Permits
Fig. 17-7, p. 409
28
Individuals Matter Ray Anderson
  • Inspired by Hawkens The Ecology of Commerce
  • First totally sustainable green corporation
  • Reduced solid waste 63
  • Reduced gas emission 46
  • Lowered energy consumption 28
  • Saved gt100 million

29
Selling Services Instead of Things
  • Shift from material-flow economy to service-flow
    economy
  • Make more money by eco-leasing
  • Eco-leasing examples
  • Xerox
  • Carrier

30
17-3 How Can Reducing Poverty Help Us Deal with
Environmental Problems?
  • Concept 17-3 Reducing poverty can help us to
    reduce population growth, resource use, and
    environmental degradation.

31
Widening Gap Between Rich and Poor
  • Poverty harmful health and environmental
    effects
  • Reducing poverty benefits individuals, economies,
    and the environment
  • Trickle-down/flow-up model unsustainable

32
Global Distribution of Income
33
Richest fifth 85
Poorest fifth 1.3
Fig. 17-8, p. 411
34
Reducing Poverty
  • Some countries reduced poverty rapidly
  • Developing countries must change policies,
    emphasizing education
  • Debt forgiveness for developing countries
  • Condition debt money devoted to basic needs

35
Additional Measures to Combat Poverty
  • Increase nonmilitary government and private aid
  • Combat global malnutrition and infectious
    diseases
  • Invest in small-scale infrastructure
  • Encourage microloans to poor

36
Case Study Microloans to the Poor
  • Poor lack credit record and assets for loans
  • Microcredit
  • Grameen Bank, Bangladesh
  • Repayment rate of 99
  • Reduces poverty, domestic violence, divorce and
    birth rate

37
Millennium Development Goals
  • Reduce poverty, hunger, and improve health care
  • Developed countries agreed to devote 0.7 of
    national income
  • Average has only been 0.25

38
What Should Our Priorities Be? (1)
39
What Should Our Priorities Be? (2)
40
1 trillion
Expenditures per year (2005)
World military
492 billion (including Iraq)
U.S. military
U.S. highways
29 billion
U.S. potato chips and similar snacks
22 billion
U.S. pet foods
19 billion
U.S. EPA
8 billion
U.S. foreign aid
8 billion
U.S. cosmetics
8 billion
Fig. 17-9a, p. 413
41
Expenditures per year needed to
Reforest the earth
6 billion
Protect tropical forests
8 billion
Restore rangelands
9 billion
Stabilize water tables
10 billion
Deal with global HIV/AIDS
10 billion
Restore fisheries
13 billion
Provide universal primary education and eliminate
illiteracy
16 billion
Protect topsoil on cropland
24 billion
Protect biodiversity
31 billion
Provide basic health care for all
33 billion
Provide clean drinking water and sewage treatment
for all
37 billion
Eliminate hunger and malnutrition
48 billion
245 billion
Fig. 17-9b, p. 413
42
Transition to an Eco-economy and Making Money
  • Hawkens rule
  • Industries and businesses disappear or remake
    themselves
  • Greatest investment opportunity of the century

43
Shifting to More Environmentally Sustainable
Economies
Fig. 17-10, p. 414
44
Green Careers
Fig. 17-11, p. 414
45
17-4 Implement More Sustainable and Just
Environmental Policies?
  • Concept 17-4 Individuals can work with others,
    starting at the local level, to influence how
    environmental policies are made and whether or
    not they succeed.

46
Democratic Government and Environmental Problems
  • Complex problems biodiversity, climate change
  • Long-term problems need integrated solutions
  • Lack of environmental knowledge of political
    leaders

47
Principles for Environmental Policies (1)
  • Humility principle
  • Reversibility principle
  • Precautionary principle
  • Prevention principle
  • Polluter-pays principle

48
Principles for Environmental Policies (2)
  • Public access and participation principle
  • Human rights principle
  • Environmental justice principle

49
Individuals Matter
  • People create change together grassroots
  • Politics local at a fundamental level
  • Be an environmental leader
  • Lead by example
  • Work within existing systems vote with your
    wallet
  • Run for local office
  • Propose and work for better solutions

50
What Can You Do?
Fig. 17-12, p. 416
51
Developing Environmental Policy
  • Law making
  • Fund and implement regulations
  • Staff environmental regulatory agencies
  • Political pressure
  • Industry gets their people appointed
  • Industry offers regulators high-paying jobs

52
Case Study Managing Public Lands in the United
States (1)
  • Federal government manages 35 of the countrys
    land
  • National Forest System U.S. Forest Service
  • National Resource Lands Bureau of Land
    Management
  • National Wildlife Refuges U.S. Fish and
    Wildlife Service

53
Case Study Managing Public Lands in the United
States (2)
  • The National Park system
  • National Wilderness Preservation System
  • Contain valuable natural resources
  • Use of lands controversial

54
Four Principles of Public Land Use
  • Protect biodiversity, wildlife habitat and
    ecosystems
  • No subsidies or tax breaks to extract natural
    resources
  • Fair compensation for use of property
  • Users of resource extractions responsible for
    environmental damage

55
Lands Managed by the Federal Government
Fig. 17-13, p. 417
56
United States Environmental Laws Under Attack
  • Opposition
  • Corporate leaders
  • Individuals who feel threatened by environmental
    laws
  • State and local government officials resent
    implementation of federal laws
  • Recently most federal environmental laws and
    regulatory agencies weakened

57
Major United States Environmental Laws
Fig. 17-14, p. 419
58
Nongovernmental Organizations (NGOs)
  • Range from grassroots to global organizations
  • Bottom-up changes
  • Citizen-based global sustainability movement
  • Some industries and environmental groups working
    together

59
Students and Corporations Can Play Important
Environmental Roles
  • Student environmental awareness increasing
  • Environmental audits change on campuses
  • Capitalism thrives on change and innovation to
    drive technology and profits
  • CEOs and investors see profits by selling green
    products and services

60
Importance of Environmental Security
  • As important as military and economic security
  • Depletion of the natural capital leads to
    instability
  • Terrorism and violence bred and fueled by
    poverty, injustice, and inequality

61
Stronger International Environmental Policies
  • United Nations and other international
    organizations influential
  • International Organizations
  • Expand understanding of environmental issues
  • Gather and evaluate environmental data
  • Develop and monitor international treaties
  • Provide grants and loans to reduce poverty
  • Helped gt100 nations develop environmental laws
    and institutions

62
Trade-offs Global Efforts to Solve Environmental
Problems
Fig. 17-15, p. 422
63
Shift toward Environmentally Sustainable
Societies
  • Foster cooperate to make transition
  • Guidelines
  • Emphasize prevention
  • Use well-deigned and carefully monitored
    marketplace solutions
  • Cooperate and innovate
  • Stop exaggerating happens on both sides

64
17-5 How Do the Major Environmental Worldviews
Differ?
  • Concept 17-5 Major environmental worldviews
    differ over what is more important human needs
    and wants, or the overall health of ecosystems
    and the biosphere different worldviews include
    varying mixes of both priorities.

65
Human-centered Environmental Worldviews
  • Differing worldviews affect beliefs, behaviors,
    and lifestyles
  • Planetary management worldview
  • Other species have only instrumental value
  • Stewardship worldview

66
Life-centered and Earth-centered Worldviews
  • Environmental wisdom worldview
  • Part of life community
  • Earth does not need saving we need to save our
    own species

67
Comparison of Three Major Environmental Worldviews
Fig. 17-16, p. 424
68
Earth Flag
Fig. 17-17, p. 425
69
Science Focus Biosphere 2
  • Self-sustaining glass and steel enclosure
  • Artificial ecosystems and species from various
    biomes and aquatic systems
  • Unexpected problems unraveled life-support system
  • Large-scale failure of biospheres species

70
17-6 How Can We Live More Sustainably?
  • Concept 17-6 We can live more sustainably by
    becoming environmentally literate, learning from
    nature, living more simply and lightly on earth,
    and becoming active environmental citizens.

71
Environmental Literacy (1)
  • Develop respect for all life
  • Understand how life sustains itself
  • See the big picture connections
  • Think critically to gain environmental wisdom
  • Understand and evaluate environmental worldviews

72
Environmental Literacy (2)
  • Learn to evaluate consequences
  • Foster a desire to make the world a better place

73
Avoid the Mental Traps
  • Gloom-and-doom pessimism
  • Blind technological optimism
  • Paralysis by analysis
  • Faith in simple, easy answers

74
Major Components of Environmental Literacy
Fig. 17-18, p. 426
75
We Can Learn from Nature
  • Kindle a sense of awe, wonder, mystery, and
    humility
  • Develop a sense of place
  • Choose to live more simply and sustainably
  • Gandhis principle of enoughness
  • Reduce environmental footprint

76
Interrelated Components of Sustainability
Revolution (1)
  • Biodiversity protection
  • Commitment to efficiency
  • Energy transformation
  • Pollution prevention
  • Emphasis on sufficiency

77
Interrelated Components of Sustainability
Revolution (2)
  • Demographic equilibrium
  • Economic, political transformation

78
The Sustainability Dozen
79
Insulate your house and plug air leaks
Use renewable energy, especially wind and direct
solar
Reduce meat consumption
Use energy-efficient heating and cooling systems,
lights, and appliances
Buy locally grown food
Refuse, reduce, reuse, and recycle
Buy or grow organic food
Use water-saving appliances and irrigation methods
Don't use pesticides on your garden or lawn
Walk, bike, carpool, or take mass transit
whenever possible
Reduce car use
Drive an energy-efficient vehicle
Fig. 17-19, p. 428
80
Animation Resources Depletion and Degradation
PLAY ANIMATION
81
Animation Two Views of Economics
PLAY ANIMATION
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