Ecological Economics

Question 1

Economic Value

Answer 1

This is measured by how much it costs and how much it is worth

Question 2

How is value assigned?

Answer 2

Ethical, Aesthetic, Scientific and Educational

Question 3

What is the basis of ecological economics?

Answer 3

Developing methods to value biodiversity by economic valuation integration with ecology, sociology, for better policies in regards to the environmental

Question 4

Example of economics driving environmetal degradation

Answer 4

Timber trade for timber and trophy hunting

Question 5

Voluntary Exchange

Answer 5

The exchanging of goods where both parties benefit

Question 6

What arises from VE?

Answer 6

Negative/Positive externalities

Question 7

Externalities

Answer 7

These are the consequences on third parties from VE

Question 8

What results from VE

Answer 8

Prosperity yet mis-allocation of resource

Question 9

What causes the tragedy of the commons?

Answer 9

Open-access resources lik water, air or soil

Question 10

How can market failure be prevented?

Answer 10

Common property

Question 11

Example of negative externalities.

Answer 11

Conversion of land to agriculktural land, with loss of value to the community as well as species and pollution

Question 12

How can negative externalities be prevented?

Answer 12

Discipline of those contributing to it like fossil fuel taxatation

Question 13

What does CBA include?

Answer 13

Economic(harvestable resources) and quality of life

Question 14

Examples of CBA…

Answer 14

Logging vs clean water, habitat destruction, cultural value, wildflower population

Question 15

Economic models of co-existing industries…

Answer 15

Measuring how intensification of one industry affecting the other like fishing, tourism and logging

Question 16

Precautionary Principle

Answer 16

Means leaning on the side of causing no environmental harmi n the absence of certainity of the risks

Question 17

Perverse Subsidies

Answer 17

Those that have negative environmental impact

Question 18

Discount Rates

Answer 18

These are the interest rates used to convert future cash flows into an equivalent one-off upfront sum

Question 19

What might skew GDP measurements?

Answer 19

Inability to measure future environmental degradation

Question 20

Example of GDP not being good measurement…

Answer 20

Californian wildfires cost up to 150 billion or Exxon Valdez spoils creating job oppurtunities but enviromental cost

Question 21

How does GDP misrepresent Costa Rican timber industry?

Answer 21

Soil erosion and water pollution in UK estimated to be about 2.6 billion per year, 9% of value of countries agriculture

Question 22

What could subsidies be based on?

Answer 22

Environmental protection

Question 23

What indicies are used for measuring resource loss?

Answer 23

Index of Sustainabile Economic Welfare
Environmental Sustainability Index

Question 24

Index of Sustainable Economic Welfare

Answer 24

This includes loss of wetlands, farmlands, acid rain, impoverishment and human health effects, showing decline in GPD from 1986 to 1997 in US

Question 25

Environmental Sustainability INdex

Answer 25

This includes 21 environmental factors ranking countries based on health

Question 26

What values are resources assigned?

Answer 26

Harvest values, future values and natural state values

Question 27

What do Use-values include?

Answer 27

Products harvested by people and indirect does not involv harvesting or destroying resource

Question 28

Types of direct use value

Answer 28

Consumptive use value
Productive use value

Question 29

Consumptive Use Value

Answer 29

These relate to populatiosn that consume resoruces from surrounding environments

Question 30

Where are Consumptive Use Values dominant?

Answer 30

Developing countries(80% worlds population derive medicine derived from plants and animals)

Question 31

Importance of bushment to developing nations…

Answer 31

Used for protein(75% in Congo, 40% in Botsawana however unsustainable extraction rates.

Question 32

How can bushmeat value be determined?

Answer 32

Substitue cost approach being how much they spend on food they would consume if bushmeat not available

Question 33

Productive Use Value

Answer 33

This measures the price paid for a product minus the costs incurred up to that point

Question 34

How much does US depend on wild species?

Answer 34

630 billion being 4.5% GDP