economic responses

Question 1

gross national product (GNP)

Answer 1

the total market value of all final goods and services produced by citizens of a particular country in a year, regardless of where such production takes place

Question 2

three basic approaches to environmental account

Answer 2

-Measuring the physical flows of materials and energy
-Measuring the stocks of environmental assets
-The measurement of economic activity related to the environment

Question 3

net domestic product (NDP)

Answer 3

gross domestic product minus the value of depreciation of produces or human made capital

Question 4

Important points about green GDP

Answer 4

Natural capital depreciation and environmental damages can amount of a significant portion of GDP
Measuring the growth of GDP to illustrate changes in social welfare may not produce accurate results
Monetization of natural capital needs to be approached carefully

Question 5

Net domestic savings

Answer 5

a national accounting measure equal to gross domestic saving less manufactures capital deprecation

Question 6

Adjusted net savings (ANS)

Answer 6

a national accounting measure developed by the world bank which aims to measure how much a country is actually saving for its future

Question 7

Genuine progress indicator (GPI)

Answer 7

a national accounting measure that included the monetary value of goods and services that contribute to well being, such as volunteer world and higher education, and deducts impacts that detract from well being, as as the loss of leisure time, pollution and commuting

Question 8

Human development index (HDI)

Answer 8

a national accounting measure developed bu the UN based on three factors, GDP levels, education and life expectancy

Question 9

Better life index (BLI)

Answer 9

an index developed by the OECD to measure national welfare using 11 well being dimensions

Question 10

Gross national happiness (GNH)

Answer 10

the concept, originating in Bhuyan, where a society and its policies should seek to improve the welfare of its citizens as opposed to maximizing GDP

Question 11

Weak sustainability

Answer 11

the view that natural capital depletion is justifies as long as it is compensated for with increases in human made capital; assumes that human made capital can substitute for most types of natural capital

Question 12

strong sustainability

Answer 12

the view that natural and human made capital are generally not substitutable and therefore natural capital levels should be maintained

Question 13

Critical natural capital

Answer 13

elements of natural capital for which there are no good human made substitutes, such as basic water supplies and breathable air

Question 14

Green economy

Answer 14

an economy that improves human well being and social equity while reducing environmental impacts

Question 15

Environmental Kuznets Curve (EKC)

Answer 15

a theory that a country’s environmental impacts increase in the early stages of economic development but eventually decrease above a certain level of income

Question 16

Porter hypothesis

Answer 16

the theory that environmental regulations motivate firms to identify cost saving innovations that otherwise would not have been implemented

Question 17

Decoupling

Answer 17

breaking the correlation between increased economic activity and similar increases in environmental impacts

Question 18

Relative decoupling

Answer 18

breaking the correlation between increased economic activity and increases in environmental impacts

Question 19

Contraction and convergence

Answer 19

the concept that overall environmental impacts or economic activity should be reduced at the same time that economic inequalities are reduced

Question 20

Individual utility is a function of

Answer 20

-Goods and services traded in market
-Unpriced environmental externalities
-Included worries for future generations
-Market failure mays exists that prevent optimal resource allocation