3. Economic issues - environmental sustainability Flashcards
v Global environmental problems include:
Climate change
Loss of biodiversity
Illegal logging
Coral bleaching
Depletion of the ozone layer
Pollution of the atmosphere
Why is important to consider this issue
The natural environment is a source of natural resources and a destination for waste disposal
This becomes a management issue for governments to ensure quality of life is not reduced, resources are not over-exploited and excessive pollution doesn’t occur as a result of economic growth.
Environmental quality clashes with…
economic growth and inflation
Ecologically sustainable development (ESD)
description
“ development that meets the needs of the present without compromising the ability of future generations to meet their own needs “
or
The pursuit of economic growth should not threaten the environment for current and future populations.
Economic role of the environment
A source of raw materials including air, water, soil, forests, minerals, fish, etc.
A receptacle (a “container”) for biodegradable and non-biodegradable waste. Some of this waste causes pollution, such as plastics, radiation…
Provides natural amenities that can be used for tourism, sport and travel.
Private costs of environmental sustainability
spending by producers on resources to produce output AND costs incurred by consumers when buying goods and services.
Private benefits of environmental sustainability
profits made by producers and satisfaction (utility) gained by consumers.
Social costs of environmental sustainability
the costs suffered by society as a whole, as the result of private actions. E.g pollution from a factory
Social benefits of environmental sustainability
positive spillover effects of private production
Market failure and externalities in relation to the environment
The price mechanism only takes into account the private costs and benefits falling on consumers. The social costs/benefits are not accounted for.
Market failure in relation to the environment is the negative externality of pollution.
how does Market failure occur
Market failure for the environment may occur if a poorly designed (or non-existent) system of property rights exists.
Property rights enable a market exchange to occur in three ways
what are the 3 ways?
Excludability ; Transferability ; Enforceability
What is excludability market exchange
whoever is granted the property rights, may exclude others from using the property. This excludes ‘free riders’.
What is transferability
the property rights can be bought and sold. This gives the owner the incentive to maintain the property.
What is enforceability
the property rights are legally binding (i.e. supported by law). Any property disputes can be settled in court.
What are common areas
Common areas such as beaches and parklands are not bound by property rights.
This means that the public has unrestricted access to them and could lead to exploitation, pollution, congestion and degradation.
Problem of the Commons
3 examples of environmental issues
The control of pollution ; Climate change ; Depletion of Renewable and Non-Renewable Resources
Which natural environments impacted by economic activity
Many natural environments are impacted by economic activity including mining, forestry, agriculture, manufacturing and urban development.
Examples of environments that need protection
Australia has many environments that require protection such as the Great Barrier Reef, the Daintree Rainforest and Uluru. These have World Heritage listing by the UN.
Why did conservationists argue for environment protection.
Conservationists have argued for their protection to achieve environmental sustainability and intergenerational equity.
How does land and soil degradation occur
this occurs particularly in rural areas and may include overuse of water irrigation leading to soil erosion, acidity, salinity and “fish kills”.
How does land transformation occur
This can occur coastally or inland. Most profound in the overdevelopment close to the coast, which is threatened by storm activity, climate change and erosion.
How does overexploitation of resources occur (and how it affects environmental quality)
This includes logging and mining in national parks. This leads to a decline in environmental quality and depletion of some resources.
How does pollution of the environment occur
Especially occurs in major cities (esp. Sydney and Melbourne). Large populations lead to declining water and air quality. Mines also contaminate underground water supplies.
