Environmental Ethics, Economics & Policy Flashcards
Policy
Plans and principle that address problems and guide decision making
Environmental policy
- Policies that regulate resource use and decrease pollution. Dual goals of 1) promoting human welfare and 2) protecting natural systems
- Input from science, ethics, and economics is required for successful environmental policy
Why do capitalistic systems create the need for strong environmental policy?
- Capitalistic systems are driven by short-term economic gains – conflicts with long-term environmental and social stability
- Little incentive for businesses to decrease environmental impact
- Market prices do not consider the value of environmental contributions/cost of environmental degredation
Tragedy of the commons
- The tendency of an individual to abuse commonly held resources in order to maximize his or her own personal interest
- Without oversight, people deplete commonly held resources for their own self-interest
- Thus guidelines are needed for use of resources, e.g. restriction of use or management
Ways to prevent the tragedy of the commons
- Government regulations
- Subdividing the resource so each individual is responsible for conserving their personal allotment
- Resource users cooperate to prevent overexploitation
Conditions for avoiding tragedy of the commons without government regulation or privatization of resources
- Commonly pooled resources are within clearly defined boundaries
- Rules are set collectively by local users with shared moral/ethical standards
- Users are have increased value from or are dependent upon the sustainability of the resource
- Graduated sanctions are in place for users who violate community rules
- Higher authorities recognize the self-determination of the local community
Free riders
- When competitors agree to decrease environmental exploitation, one or more may be tempted to cheat to get ahead
- Eventually, more of the competitors begin cheating, and the whole effort will collapse
Ways to prevent free riders
- Public policy is generally more effective than private voluntary efforts
- With public policy, violators are more likely to be caught and punished
- More challenging with international issues–who provides oversight?
External costs
- A cost associated with a product or service that is not taken into account when a price is assigned to that product or service but rather is passed on to a third party who does not benefit from the transaction
- Ex: Until the mid 20th century, many Pittsburgh factories increased profit margins by dumping waste into the nearby river rather than paying for waste disposal/recycling. The external costs on downstream users included increased pollution, decreased fish population, and decreased recreational value.
Why are some people resistant to environmental policy?
- Property owners/businesses see regulations as inconvenient and stifling to the economy
- Environmental problems develop gradually over the long-term, so it may be hard to see the necessity of environmental policy
- Individuals, businesses, news media, politicians, etc. each have short-term needs and interests that may be in opposition to environmental policy
- Many citizens are ill-informed on environmental issues
Why is it better to retain strong federal control over environmental policy (vs states/local governments)?
- All citizens deserve equal protection against environmental and health impacts
- Economy of scale in resources: strong national efforts are more efficient that individual state efforts
- Many environmental problems involve transboundary disputes; nationwide effort decrease disputes among states
Keystone XL Pipeline
- 36” diameter pipeline carrying crude oil
- 1,700mi from tar sands in Alberta, Canada to refineries on Texas Gulf Coast, USA
14th amendment
- Prohibits states from denying “equal protection of its [government’s] laws”
- Used in environmental justice cases
5th amendment
- Private property cannot “be taken for public use without just compensation”
- Courts interpretation: bans taking of public property and regulatory taking
- Can be used to fight environmental policy, if policy is interpreted as the government depriving landowners of some/all economic use of their property
Homestead Act
- Allowed anyone to buy or settle on 160 acres of public land
- Encouraged widespread national land conversion
General Mining Act
- Allowed anyone to mine on public land for $5/acre with no government oversight
- Encouraged widespread national land conversion
National Environmental Policy Act
- Passed in 1970
- Requires Environmental Impact Statement for any federal action that might seriously impact the environment
Endangered Species Act
- Passed in 1973
- Makes illegal the extinction of any species due to human activity
Superfund Act
- Passed in 1980
- EPA program to clean up 1,700+ hazardous waste sites
- 1/6 of people live within 3 miles of a hazardous waste site
3 major types of policy approaches
- Litigation
- Government regulations
- Market-based approach
Litigation
- # 1 means of environmental justice pre-1970’s
- Individuals suffering from pollution seek redress from lawsuits
- If convicted, polluters fined, BUT often remain in business and many increase profit margins by continuing to pollute and paying off fines (rather than stop polluting)
Boomer v. Atlantic Cement (1970)
- Litigation case
- Dirt, smoke, and vibration created by Atlantic Cement caused nuisances for nearby landowners
- $185K awarded to plaintiff; cement company valued at $45 million stayed in business
Government regulations
- Command and control approach: regulatory agencies set rules and threaten punishment for violators
- Often produces good results: of 107 EPA regulations enacted 1992-2002, cost of $40 billion/year to enforce, produced benefits of $200 billion/year to public
- Problematic because of lobbyists working against public interests, citizens viewing regulations as restrictions of freedom
Examples of market based approach
- Green taxes
- Permit trading
- Cap and trade