Environmental Economics, Politics, and Worldviews

Environmental Economics, Politics, and Worldviews Chapter 17 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 Individuals Matter: Marion Stoddart Fig 17-1, p 401 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 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 Three Types of Resources Natural Resources Manufactured Resources Human Resources Goods and Services Fig 17-2, p 403 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 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 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 Comparison of Three Major Environmental Worldviews Fig 17-16, p 424 Earth Flag Fig 17-17, p 425 Science Focus: Biosphere  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 biosphere’s species 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 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 Environmental Literacy (2)  Learn to evaluate consequences  Foster a desire to make the world a better place Avoid the Mental Traps  Gloom-and-doom pessimism  Blind technological optimism  Paralysis by analysis  Faith in simple, easy answers Major Components of Environmental Literacy Fig 17-18, p 426 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  Gandhi’s principle of enoughness  Reduce environmental footprint Interrelated Components of Sustainability Revolution (1)  Biodiversity protection  Commitment to efficiency  Energy transformation  Pollution prevention  Emphasis on sufficiency Interrelated Components of Sustainability Revolution (2)  Demographic equilibrium  Economic, political transformation The Sustainability Dozen 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 Reduce car use Drive an energy-efficient vehicle Walk, bike, carpool, or take mass transit whenever possible Fig 17-19, p 428 Animation: Resources Depletion and Degradation PLAY ANIMATION Animation: Two Views of Economics PLAY ANIMATION [...]... beneficial activities and by taxing pollution and wastes instead of wages and profits 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 Use of Environmental Economic... reuse, and composting Fig 17-4, p 404 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... 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 Environmental Taxes and Fees Fig 17-6, p 408 Tax Pollution and Waste  Green taxes discourage pollution and waste  Current tax system • Discourages jobs and profit-driven innovation... measure environmental degradation  Estimating the value of natural capital  Genuine progress indicator (GPI) monitors environmental well-being Genuine Progress Indicator Genuine Benefits not Harmful - environmental progress = GDP + included in indicator market transactions & social costs Comparison of GDP and GPI Fig 17-5, p 406 Include Harmful Environmental Costs in Prices of Goods and Services  Environmentally... Solar Capital Goods and services Economic Systems 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 Heat Production Depletion of nonrenewable resources Consumption Degradation of renewable resources (used faster than replenished) Pollution and waste (overloading... Xerox • Carrier 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 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... 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 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 Reward Environmentally Sustainable... Regulation  Laws – command and control  Incentive-based regulations  European experience positive for innovationfriendly regulations Use of the Marketplace  Incentive-based model  Government place caps on total pollution levels • Tradable pollution • Resource-use permits  Shown to reduce pollution Trade-offs: Tradable Environmental Permits Fig 17-7, p 409 Individuals Matter: Ray Anderson  Inspired... disposal and recycling systems) Fig 17-3, p 403 Components of Environmentally Sustainable Economic Development Production of energy-efficient fuel-cell cars Forest conservation Underground CO2 storage using abandoned oil wells High-speed trains No-till cultivation Deep-sea CO2 storage Solar-cell fields Bicycling Communities of passive solar homes Water conservation Cluster housing development Landfill...  Increase nonmilitary government and private aid  Combat global malnutrition and infectious diseases  Invest in small-scale infrastructure  Encourage microloans to poor 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