Lecture 3 Ethics and Economics (Ch3)

Question 1

Conservation

Answer 1

is associated with the protection of natural resources; seeks the proper use of nature (wants to regulate human use)

Question 2

Preservation

Answer 2

is associated with the protection of buildings, objects, and landscapes; seeks protection of nature from use (wants to eliminate human impact altogether)

Question 3

Who was the founder of the Sierra club and argued to preserve Hetch Hetchy Valley in Yosemite, protecting it from human activity?

What was his approach?

Answer 3

John Muir

Sierra club members wanted to preserve and restore Hetch Hetchy Valley

Preservationist approach, less anthropocentric

Question 4

Who was head of the US Forest Service and argued to make a damn and reservoir in the Hetch Hetchy Valley in Yosemite because of demand for water in San Francisco?

What was his approach?

Answer 4

Gillford Pinchot

His argument was more anthropocentric: he aimed to improve the welfare of all (not just he wealthy)

Utilitarian and Conservationist approach, aiming to use experts to help us make good decisions

forestlands are to be conserved so they might be wisely used and controlled by all citizens (max/min)

He was economics-driven: aimed to increase economic prosperity by smart use

Question 5

Who was responsible for much of our current-day public lands such as national parks, forests, etc?

Answer 5

Roosevelt

Question 6

What is the problem with environmental protection vs economic needs?

Answer 6

the public is varied, we do not all agree on what is the best use of the land, even if conservationism is accepted (which isnt in all cases)

Question 7

What is required for free markets to self direct to efficiency?

Answer 7

1. everything can be bought/sold

2. markets are competitive (large enough, with no monopolies)

Question 8

What is the pareto criterion?

Answer 8

requires any change such that at least one gains and no one loses from the change (not utilitarian)

Note: Pareto improvement makes at least one individual better off without making any other individual worse off

Question 9

What is the potential compensation criterion?

Answer 9

if the prospective gainers could compensate (any) prospective losers and leave no one worse off, the alternate state is to be selected

Question 10

What are some problems with the free market vs expert decision?

Answer 10

environmental resources are scarce; people do not have effective property rights in environmental units (ex: air, sea)

Question 11

Malthusians (Thomas Malthus)

Answer 11

Views population growth negatively

Uncontrolled population growth inexorably results to environmental destruction.

Populations can grow faster than food production can increase

Question 12

Cornucopians

Answer 12

Views population growth positively

More population comes more brains to generate ideas.

Believe that advances in technology can take care of society’s needs.

Question 13

Government control

Answer 13

uses forestry experts - but loses money annually:
The national forest is being conserved, but this does not bring any profit to fund its own management and protection – not enough funding, so you get a net loss

Question 14

Free markets

Answer 14

prevents fraud of the government, with open competition to achieve most efficient uses of the forest BUT is not ideal in the real world.

Question 15

Who is O’Toole?

Answer 15

Supports a true-free market system, because those who are making decisions are motivated because their own interests is at stake (a real competition)

Says you cannot try so hard to satisfy all interest groups and require fiscal success - maintenance of budget is not indicative of achievement

Wants to change the timber-sales system - because there are incentives to sell timber at any cost - even when there is a loss

(Americans can have all the forest resources they want, but shortage is due to the Forest Service’s failure to sell them at market prices)

Question 16

What is the balance to consider with how clean we need water/air to be?

Answer 16

is is risk free? no, we do take risks (driving, eating, etc)

You need a cost-benefit analysis

What are we willing to give up to get it that way? However, some people have more ability to pay for it

Question 17

Who wrote People or Penguins: The Case for Optimal Pollution and what issue does it address?

Answer 17

Baxter

Argues that when the net gain is not worthwhile, the threshold has been crossed

Freedom without infringement, No waste, People (the source of all value) must be people-oriented

Question 18

What are O’Toole’s Values?

Answer 18

freedom, property rights, creating most good possible

Question 19

What does Sagoff point out?

Answer 19

Desires (market relevant) are not the same as beliefs
(beliefs are not consistent)

It is difficult to put a price on some environmental elements

You cannot put a price on beliefs (category mistake)

Beliefs are based on reason, not price

Question 20

Consumers are driven by what?

Answer 20

comfort and pleasure

Question 21

Citizens are driven by what?

Answer 21

meaning

Question 22

What are the economic/non-economic cost of deciding to ban deepwater oil drilling?

Answer 22

?

Question 23

What are the pros/cons of government ownership of large tracts of lands? (Public ownership)

Answer 23

private: will ordinarily lead to profit-maximizing use of land

public ownership: will lead to nature preservation, low density recreation; property interests that are vested in the state, rather than an individual or communities