SG 3 Flashcards
Define economics and economy. What types of economies exist today?
Economics- study of production, distribution, and consumption of goods and services and their management.
Subsistence economy - people meet their needs directly from nature and agriculture
Capitalist market economy - Buyers and sellers interact to determine production and prices of goods and services
Centrally planned economy - national government decides how to allocate resources
Describe how the environment and the economy are linked.
Environmental economics - says that economic growth may be unsustainable if we don’t reduce population growth and make resource use much more efficient
Define and give examples of ecosystem services.
Nat. resources- air, water, soil, land, life, nonrenewable minerals, renewable energy, nonrenewable energy
nat. service- air purification, water purification, soil renewal, nutrient recycling, food production, pollination, grassland renewal, forest renewal, waste treatment, climate control, population control, pest control
Know the conclusions of the Millennium Ecosystem Assessment regarding the state of the Earth’s ecosystems and the implications for human well-being.
Showed that 15/24 ecosystem services are being used unsustainably, degradation disrupts economies, impacts poor more that wealthy, and reversing degradation is possible with sufficient changes
*What are four assumptions of traditional economics and their implications for the human health and the environment?
Resources are infinite (not the case), long term effects are discounted (decisions are made to maximize short-term benefits), costs and benefits are internal (external costs of people not involved. Not included in the price of goods), growth is good.
Define cost-benefit analysis. Discuss its limitations.
We don’t take into account ecological services. Things that are detrimental to humanity can be read as a positive. Prevention can be much cheaper.
What is meant by an external cost? Give some examples related to environmental and public health concerns.
Cost paid but another location, ecosystem or culture.
Mining in Africa, production in China, Child and Slave labor
How is the economic growth of a nation usually quantified? What are some criticisms of this approach? Give an example of where an increase in the GDP might not indicate an increase in human welfare.
Gross Domestic Product (GDP)- total monetary value of final goods and services it provides each year. Used to assess national economy.
GDP -shows economic growth based on monetary value of goods and services. Only includes thing easy to quantify and may give positive value to a negative source.
War, Oil spill in gulf, prisons
Describe ways in which some economists have assigned market values to ecosystem services. Recognize the results and conclusions of their analyses.
They have given monetary value to how often natural resources get used and things like time people spend at parks etc. These are studies by either surveys or observations
Describe what is meant by a circular economy? What is meant by cradle to cradle versus cradle to grave?
Cradle-to-cradle economy - “Benign by design”
Circular Economy = Sustainable
We are in a linear economy
cradle to grave = deposable economy
Distinguish between policy, public policy, and environmental policy.
ok
Describe the three waves of environmental policymaking in the United States. What is considered the fourth wave?
Late 1700’s: westward expansion. 1960’s: laws promoted conservation- creating national parks and forests, soil conservation. Laws curbed pollution and other environmental problems- Silent Spring (1962), Santa Barbara Oil Spill, Cuyahoga river catches fire
4th- Wave for sustainability and developing goals
Recognize the functions of the Environmental Protection Agency (EPA).
in charge of conducting and evaluating research, monitoring environmental quality, setting and enforcing standards for pollution levels, assisting states in meeting standards and goals, and educating the public
Recognize several international organizations that influence international environmental policy.
United Nations - serves every country in the world. Helps nations understand and solve environmental problems
World Bank - one of world’s largest sources of funding for economic development
European Union - works to address waste management, noise, water, and air pollution, habitat degradation, and natural hazards
World Trade Organization - has real authority to impose financial penalties on nations that don’t comply with directives, which can play major role in shaping policy
Recognize the following types of economic policies: command and control, green tax (AKA polluter pays principle),
payment for ecosystem services (AKA beneficiary pays), subsidies, tax and subsidy shifting, marketable permits or
cap and trade, and ecolabeling. Give examples of each.
Command and control - a regulating agency prohibits a certain action, or sets rules, standards, limits, and threatens punishment for violators. Setting a limit to how much you can pollute.
polluter pays principle- you can pollute but you have to pay.
Beneficiary pays- payment for ecosystems services
Green tax/environmental tax reform - taxes environmentally harmful activities
