Economic Development & Sustainable development Flashcards
to slay
What does EKC stand for?
Environmental Kuznets Curve
Who were the people who invented the EKC and who tested it?
made in 1955 by Simon Kuznets and first studied in 1993 by Grossman and Krueger
According to the EKC theory, why do emissions fall?
increased demand for environmental quality goes up - leading to increased governmental protection and green consumerism
tech improvements makes production cleaner
structural changes of the economy
Why is there such a difference in the empirical findings of the EKC studies?
come countries have not reached the level of development to be considered “over the bump”
other factors drive emissions
the nature of the pollutants studied
Is the EKC correct?
In regional and local areas of impact, but not global impact
Grossman and Krueger argues that the turning point (y) is between … GNP per capita
$4,000-$6,000
This SD definition is by whom?
“Seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future”
Brundtland (slay)
This SD definition is by whom?
“A requirement to our generation to manage the resource base such that the average quality of life we ensure ourselves can potentially be shared by all future generations”
Ger Asheim
What is the similarity between the SD definition of Asheim and Brundtland
Fairness across generations and fairness within generations
SD is mainly an equity, rather than efficiency issues
What is weak sustainability?
This permits natural capital to be run down (ex: through using oil stocks) as long as human and man-made capital are increased sufficiently (zero-net investment)
Closely relates to the Hartwick rule
What is strong sustainability
SD requires a non-decline in stock of natural capital (Kn). Reductions in Kn cannot be substituted for by increasing Kh or Km
Who said “the only way to attain a decent environment is to become rich”?
Wilfred Beckerman
What is the Hartwick rule?
Hartwick’s rule defines the amount of investment in produced capital (buildings, roads, knowledge stocks, etc.) that is needed to exactly offset declining stocks of non-renewable resources. This investment is undertaken so that the standard of living does not fall as society moves into the indefinite future
Value all environmental goods and services at their correct prices…
Placing the correct prices on the environment through eco-taxes might move us closer to SD, as one reason why environmental resources are overused is the lack of correct prices.
Problem with this is that placing correct prices might reduce our consumption, it will not address the fairness aspect of SD
