Review Flashcards
What is Environmental Economics?
A subfield of economics that focuses on the relationship between economic activities and the environment.
What is the goal of Environmental Economics?
To understand how economic processes affect the environment and design policies for sustainable development.
What does valuation of environmental resources involve?
Quantifying the economic value of natural resources and ecosystem services.
What are externalities in the context of Environmental Economics?
Costs and benefits affecting third parties not directly involved in economic transactions, such as pollution.
Define sustainable development.
Promoting economic growth that does not compromise environmental health or deplete resources for future generations.
What is the focus of policy analysis in Environmental Economics?
Evaluating the effectiveness of regulations, taxes, and incentives aimed at reducing environmental degradation.
What approach does Environmental Economics take?
An interdisciplinary approach combining economics, ecology, and social sciences.
What is the significance of valuing ecosystem services?
It quantifies the economic value of natural resources and services.
What does the analysis of externalities address?
Costs and benefits affecting third parties to address market failures.
What is the goal of cost-benefit analysis in Environmental Economics?
To evaluate environmental policies and their impacts.
True or False: Environmental Economics only focuses on economic growth.
False
What is the definition of environmental damage?
The deterioration of the natural environment through depletion of resources, destruction of ecosystems, and pollution.
List three types of environmental damage.
- Pollution
- Habitat Destruction
- Biodiversity Loss
What are the main causes of environmental damage?
- Industrialization
- Agricultural Practices
- Urban Expansion
- Resource Exploitation
What are some consequences of environmental damage?
- Health Risks
- Economic Impacts
- Social Displacement
What is one mitigation strategy for environmental damage?
Implementing sustainable practices in agriculture, industry, and urban planning.
What is a key objective of Environmental Economics?
Maximizing social welfare while reducing environmental harm.
Fill in the blank: Efficient resource use promotes the sustainable and effective distribution of natural resources to balance economic growth with _______.
[environmental sustainability]
What does incentivizing sustainable practices involve?
Developing economic incentives for the conservation and responsible use of natural resources.
What does equity and justice in environmental objectives aim to achieve?
A fair distribution of environmental benefits and burdens among various social groups.
True or False: Intergenerational equity focuses on current generations only.
False
What is the importance of integrating environmental considerations into economic decisions?
To urge policymakers and businesses to factor environmental aspects into their strategies.
What is the purpose of developing effective policies in Environmental Economics?
To address market failures, including externalities and public goods.
