ch19: poverty, population, and the environment Flashcards
traditional economic development
development is achieved by productively absorbing the labor freed up in the agrarian transition
the agrarian transition
When farming becomes more efficient, goods can be exported and millions of people can be employed elsewhere such as in factories. If jobs are not made there is often mass poverty
wealthy countries can improve environmental quality by…
sacrificing material consumption
–> in IPAT, reduce A in wealthy countries
poor countries can improve environmental quality through
broad based growth in income
–> reduce P in poor countries
4 connections between poverty and environmental quality
- For poor people, many environmental problems are problems of poverty
- Poor people degrade local resources because they cannot afford to conserve them
- Richer people demand more pollution control
- Wealthier people tend to have lower rates of population growth
environmental kuznets curve hypothesis
as economic growth proceeds, certain types of pollution problems first get worse and then get better
some regulated pollutants display an inverted U shaped function of income
- as income rises, pollution increases and then falls
- Estimated $15,000 gdp per person threshold level where environmental damage falls
ex small-scale farming –> industrial farming –> organic farming
4 explanations for the EKC hypothesis
- Education:
as income rises, so do levels of awareness regarding environmental threats. - political demand for pollution control:
as income rises, political democracy and citizen participation tend to increase - a shift in industrial composition:
Wealthier countries rely more on services and other relatively “clean” industries, while less-developed countries have more basic manufacturing and mining - relative risk considerations
shorter lifespans (due to inadequate nutrition, lack of health care) –> decreased concerns about long-term pollution-related illnesses
issue w ekc hypothesis
some pollution increases with income
ie co2 emissions and solid waste
why do high income ppl have few children?
MB decreases for each kid had and with wealth
- more kids have, the less benefit each additional one brings
- don’t require kids for extra hands or for help in old age
MC increases w each kid had and with wealth
- ratio of parent to child decreases so need to start working less or hire help
- high income ppl consume more so cost of having child increase
Demographic transition
Argued that poor countries are passing through a high-population-growth phase which resulted from a decline in death rates, due to the introduction of modern medicine in 40s and 50s
As average incomes rise, birth rates will fall and a natural demographic transition to low population growth will ocur
a vicious cycle of population + poverty
a vicious cycle, in which population growth leads to poverty that sustains high population growth, remains a concern in some developing countries
Economic growth alone may not break this cycle - need aggressive measures to control population growth
Poverty-fertility relationship
an economic model in which all parents seek economic insurance (provide car in old age + poor health) and an income supplement (employed to provide money to parents) from children
children are an economic investment. parents invest time and money w hopes of future productivity of their children.
an effective route to population control: changing parents economic family plan from low to high investment strategy
Low vs high investment parenting strategies
low investment (quantity)
- lots of children provide small benefit to family income and insurance
- because of lack of resources and high risk of child mortality, poor parents choose low investment strategy
high investment (quality)
- a small number of children are more likey to succeed in gaining a high earning job and substantially increase the family income
- limited resources make this difficult for poor parents to choose high investment strategy
4 ways to control population growth
- Balanced economic growth and/or redistribution of income 2. Reduced infant and childhood mortality
- Access to education
- Comprehensive family planning
land reform
an example of redistribution of wealth that involves breaking up of huge, underutilized estates into smaller units, made accessible to landless farmers
- if people have property rights, will have incentive to manage resources sustainably