chapter 3

Question 1

The value of biodiversity

Answer 1

“By destroying biodiversity we are truly losing something of value”.

But what exactly are we losing?

Question 2

Idea of voluntary transaction

Answer 2

Monetary transaction takes place only whet it is beneficial to both parties involved

Question 3

externality

Answer 3

Externalities: Hidden cost or benefits that result from a economic activity to individuals or a society not directly involved in that activity.

ex: environmental damage as a consequence of human economic activity ex: dumping sewage into river as a by product of manufacturing. externalities=polluted drinking water, fish not safe to eat.

Question 4

Market failure:

Answer 4

Misallocation of resources in which certain individuals or businesses benefit from using a common resource, such as water, the atmosphere, or a forest, but other individuals, businesses or the society at large bears the cost.

occurs when resources are misallocated allowing a few individuals or business to benefit at the expense of a larger society.
where externalities exist-> market fails to benefit
ex: using underdeveloped land and turning into a neighborhood

Question 5

ecological economics

Answer 5

integrates economics environmental science, ecology, public policy that includes valuations of biodiversity in economic analyses.

Question 6

common property resource

Answer 6

resources collectively owned by society at large or owned by no one, with open access to every one

-rarely assigned monetary value
ex: air, clean water, soil quality

Question 7

Open-access resources:

Answer 7

Open-access resources: Natural resources that are not controlled by individuals but are collectively owned by society: water, air, soil.

Question 8

Tragedy of the commons:

Answer 8

Tragedy of the commons: The value of the open-access resource is gradually lost to all of the society (Lant et al. 2008).

Question 9

precautionary principle

Answer 9

may be better not to approve a project that has risk associated with it and instead on the side of doing no harm to the environment than to do harm unintentionally or unexpectedly

Question 10

Ecological Economics and
Environmental Economics

Answer 10

-Environmental impact assessment
-Cost-benefit analysis
-Calculation of the Gross Domestic Product (GDP)
-Genuine Progress Indicator (GPI)
-Environmental Sustainability Index (ESI)

Question 11

Environmental impact assessment-

Answer 11

considers the present and future effects of the projects on the environment

Question 12

Cost-benefit analysis-

Answer 12

compares values gained against the cost of the project or resource use (hard to measure)

Question 13

Calculation of the Gross Domestic Product (GDP)

Answer 13

measures the economic activity in a county without accounting for all the costs of unsustainable activities
-GDP may be positive but it could mean that it is generally destructive to long-term economic wellbeing

Question 14

Genuine Progress Indicator (GPI)

Answer 14

-suggest that many modern economies are achieving their growth only through the unsustainable consumption of natural resources.

Question 15

several types of values of biodiversity all used to

Answer 15

calculate total economic value of biodiversity

Direct use values-assigned to products harvested by people: timber, seafood

Indirect use values-benefits provided by biodiversity that do not involve harvesting or destroying the resource, “public good”-> water quality, soil protection, education
—-option value-prospect of future benefits to human society ex: new medicine

Existence value-value that can be assigned to biodiversity, measure how much are people willing to protect a species from extinction
—-bequest value-how much are they willing to pay to protect something for the future

Question 16

Consumption use value is considered what kind of value?

Answer 16

Direct economic value:

Consumption use value can be calculated by considering how much people would have to pay to buy an equivalent product if their local source were no longer available. Do not appear in GDP, not bought or sold
possibly forced to relocate

Question 17

Productive use value is considered what kind of value?

Answer 17

Direct economic value:

Productive use value: natural resources are sold commercially and have enormous total market value.
Forest products
The natural pharmacy

exported at a rapid rate to earn foreign currency.
-harvested from wild and should out

2 ways to assign $:
1. price paid at first point of sale-cost incurred up that point
2. or at final retail price of product

Question 18

Indirect economic values

Answer 18

aspects of biodiversity-environmental process and ecosystem services

Nonconsumption use value: services not consumed.
-enormous value exceeding the direct use value of biodiversity
-ecosystem services: marine ecosystem-plays an important role in energy cycles water and nutrient cycles.

Ecosystem productivity: -e.g., use of solar energy, estuaries, etc.
Ecosystems with reduce biodiversity are less able to adapt to the altered conditions associated with rising CO2 and global climate change.

-estuaries-our impact decreases biodiversity when will ecosystem stop productivity that rely on for business?

Question 19

Indirect economic values
Water and soil protection

Answer 19

Water and soil protection: watersheds
1980 New York; 1.5 millios
Water filtration plants; 8-9 billions

watersheds-biological communities are of vital importance in protecting watersheds and maintaining water quality. Roots increase water holding capacity, less floods with leaves

-paid 1.5 billion to a county and town gov. to maintain forests on the watershed to improve agricultural products
-it would cost 8-9 billions in water filtration plants if they hadn’t done 1980 New York
-more human activity->more floods->less land value

Question 20

Indirect economic values
Wetland ecosystem services whose value is typically not accounted for in the current market system include

Answer 20

Wetland ecosystem services whose value is typically not accounted for in the current market system include waste treatment, water purification, and flood control - essential to healthy human societies

Question 21

Climate regulation is what kind of economic value:
Species relationships and environemental monitors.

Answer 21

Indirect economic values

Climate regulation: reduction of plants results in reduction of the intake of CO2. Plants are the “green lungs” of the planet.

Species relationships and environemental monitors. Relationships between species are ofter essential for preserving biodiversity and provide value to people. For example, many insects pollinate the crops on which people depend for food.
-the species we harvested are important for other species to thrive-this will impact us and our economy

Question 22

Amenity value:
Educational and scientific value
are what kind of values

Answer 22

Indirect economic values

Amenity value: recreational services for humans. E.g., natural experiences in a park = $7 dollars per hour.
Ecotourism

-hiking, birdwatching, photography
-ecotoursim- people rising places and spending money to experience unusual biological communities ex: everglades, African savannah, coral reefs. It is an immediate justification for conservation biology.
-Tourism- can also mean that tourist clad cause more damage by being destructive.

Educational and scientific value: increase human knowledge, enhance education, and enrich the human experience.
-nature used and intellectual content -employment for people to research for making books.

Question 23

horseshore crabs

Answer 23

-important food source for shorebirds and costal fish-good tourism animals
-blood makes a chemical to detect bacterial contamination in medicines and vaccines. Only source

Question 24

The long term View: Option Value
-Bioprospecting:

Answer 24

Option value: The potential of biodiversity to provide an economic benefit to human society at some point in the future.
-Bioprospecting: searching for new plants, animals, fungi and microorganisms that can be used to fight human
disease or to provide some other economic value.
(set out by gov. research)

-Costa Rica: National Biodiversity Institute (INBio): 1 million (collect products to facilitate research for new medicines and profit from these products)

-Glaxo Wellcome corporation and Brazil: 3 millions(to sample, screen, and investigate 40,000 plants, fungi, bacteria

Question 25

if biodiversity decreases=ability of scientists to

Answer 25

locate and perhaps make use of a broad range of species decreases

Question 26

biopiracy

Answer 26

unrestricted collection of material without a sharing of the profits

Question 27

Existence Value

Answer 27

Existence value: The benefit people receive from knowing that a habitat or species exists and quantified as the amongt that peoeple are willing to pay to prevent species form being harmed or going extinct, habitats from being destroyed, and genetic variation from being lost (Zander and Garnet 2011). (amount people are willing to pay to protect life)
–Beneficiary or bequest value: benefit for children and descendants or future generations quantified as the amount people are willing to pay for this goal.

short term benefits most outweighs the environmental costs

Question 28

charismatic megafauna

Answer 28

pandas, whales, elephants, manatees and many birds elicit strong responses in people

Question 29

Environmental Ethics

Answer 29

Ethical arguments can complement economic and biological arguments for protecting biodiversity. Such ethical arguments are readily understood by many people.

1. Each species has a right to exist-has its own intrinsic value unrelated to human needs.
2. Species interact in complex ways in natural communities-they are interdependent-species interact in complex ways as part of natural communities
3. People have a responsibility to act as stewards of the Earth-religion foundation. Gods creation should not be destroyed
4. people have a responsibility to future generations-will pay the price for our damage
5. respect for human life an concern for human interests are compatible with a respect for biodiveristy
6. nature has spiritual and aesthetic value that transcends it economic value
   -poets, writers, artists
   7.biodiversity is needed to determine origin of life.

-articulates the ethical value of the natural world
-if our society adhered to principles of environmental ethics, the preservation of the natural environment and maintenance of bio diversity would be fundamental priority.

Question 30

Deep Ecology

Answer 30

Environmental philosophy that advocates placing greater value on protecting biodiversity through changes in personal attitude, lifestyle, and even societies.
-Greenpeace
-Earth First!
—-green parties in Europe committed to using their knowledge of environmental issues to protect species and ecosystems.

Deep ecology-all species have value in themselves and humans no right to reduce this richness
-quality aesthetic, culture rather than environments economic values.
-shares many values with conservation biology