section 6.3 and 6.4 of the reading

Question 1

What view is supported by the world bank and lays the fundation for the Kuznets curve?

Answer 1

” the only way to attain a decent environment in most countries is to become rich”

Question 2

how does the Kuznets curve look like

Answer 2

inverted-u shape relationship between equality of income distribution and income levels

Question 3

what did the limits to growth argue?

Answer 3

strongly that economic growth is bad for the envirornment

it leads to more resources use and more pollution

Question 4

how is EKC measured

Answer 4

change in income per capita

Question 5

how is environmental quality measured?

Answer 5

• indiviudual pollutant emissions

by and index of pollutants

using changes in ambient air/water quality

Question 6

what does the EKC hypothesis state

Answer 6

perr capita income grow, environmental impacts rise, hit a maximum and then decline.

Question 7

two parts of the curve can be identified before and after a turning point at y. up to Y emissions are rising and environmental quality is falling why?

Answer 7

• economic growth = increasing use of resources and land clearance, this gives rise to an increase in waste
• if a country starts from early development stage as an agricultural economy, then industrialization also leads to an increase in emissions, as manufacturing takes over from agriculture as the dominant economic activity

Question 8

after y, though, emissions fall and environmental quality rises. why?

Answer 8

• increasing demand of environmental quality as income goes up= gov protection of the environment and increasing consumerism
• technology makes production cleaner
• changes in economy occurs= from manufacturing to service sector og hight tech industries
• environment quality drives up relative price= less is consumed and more preserved

Question 9

considering the dynamic perspective, how does the EKC imply a hierarchy of needs?

Answer 9

1. people want food and shelter
2. they demand amenity
3. we protect ourselves from nature

4 lastly we protect nature from ourrselves

Question 10

Brundtland definition of sustainable development

Answer 10

development that meets the needs of presennt generations without compromising the ability of future generations to meet their own needs

Question 11

Asheim´s definition of SD

Answer 11

a requirement to our generation to manage the resources base such that the avrage quality of life we ensure ourselves can potentially be shared by all future generations

Question 12

what does the two definitions have in common?

Answer 12

fairness within generations

Question 13

sustainable development path for an economy over time may be divided into two broad groups:

Answer 13

1. the outcome approach

how the economic process affects well-being directly.

2. the opportunity approach

to consider the means which are available ro society to generate well being or resources

Question 14

what are the different forms of capital

Answer 14

man made (Km)

human capital (Kh)

natural capital (kn)

Question 15

explain natural capital

Answer 15

compromises all gifts of nature and so includes renweble and non-renewable energy and material resources: clean air and water, nutrients and carbon cycles

Question 16

explain man-made capital

Answer 16

• the resulkts of past production

the excess of output over consumption

machinery roads, bridges

needs to be offset with new investment or else the stock of km will decline

Question 17

human capital Kh

Answer 17

labour

skills and knowledge embodied within people.

the stock of Kh can also depreciate and can be added through training and skills

Question 18

two different chance approach definitions of sustainability can be offered

Answer 18

1. Weak sustainability

requires the total capital stock K where K= Kn+Kh+Km to be non-declining

2. Strong sustainability

reductions in Kn cannot be substituted for by increases in Kh or Km.

no declines in: Kn or critical Kn

Question 19

what is critical human capital?

Answer 19

is the subset of Kn which is either

1. essential for human survival and or

2 not suitable for by increases in either elements of Kn or in Kh or Km

Question 20

What are the two economic meaning of SD

Answer 20

1. outcome approach

means that consumption or utility do not decline over time

2. chance approach

means we pass on to future generations as much capital as we have so that theu have no less a chance than us to be happy

Question 21

what could the government impose on markets if we want to attain a sustainable pattern of development? 4 possibilities suggested

Answer 21

1. value all environmental goods and services at their correct prices
2. the Hartwick rule
3. Dalys operational principles
4. Rules set in terms of natural capital itself