Lecture 5 - Sustainability

Question 1

Why does sustainability matter?

Answer 1

Limits to growth: overuse of natural resources will be damaging to us too in the long term (overuse => nothing else to produce => lower capita and food => population decrease)

Question 2

What is the Kuznets Curve?

Answer 2

Kuznets Curve : there is a reverse U-shaped relationship between GDP per capita and inequality.

So increase GDP per capita increases inequality up to a certain point (mid rich countries have higher inequality than poor countries)

Traditional societies: people are quite equal. As industrialization/modernization increases => more inequality (higher differences)
Wealthier societies: need to give from the rich to the poor to ensure higher equality

Question 3

What are the findings of the Kuznets curve?

Answer 3

Refuted: some countries where GDP per capita is quite high but inequality is quite high (e.g., America)

Equality is often the result of political decisions.

Question 4

How does sustainability relate to the economy?

Answer 4

Environmental Kuznets curve : there is a reverse U-shaped relationship between GDPs per capita and environmental pollution

Tradition societies => modernization and industrialisation => increase in production => increase in income + increase in pollution => modernization continues => increase in production + better ways of production => increase in income + decrease in pollution.

So, increase in income also increases willingness to pay for environmentally friendly solutions.

Question 5

What were the findings of the Fairbrother study regarding willingness to pay for environmentally friendly solutions?

Answer 5

Willingness to pay for environmentally friendly solutions does not increase with GDP/capita (the lowest in median countries, reverse u-shaped relation).

But as individual income increases, willingness to pay also increases.

Question 6

Explain the theory of planner behaviour regarding sustainability and individual action

Answer 6

Theory of planned behaviour: there is quite a large gap between values and actions/ behaviour.

Environmentalism =/=> ecological behaviour.
Reasons: lack of money, lack of belief actions will have effect, personal hindrance outweighs good

Question 7

What are the findings regarding individual beliefs and ecological actions?

Answer 7

Relationship ecological concerns => purchase intentions (of green products) is affected by many other variables (mediators and moderators)

E.g.: Attitudes, social norms (what others think), perceived behavioural control (ability to buy green products)