Valuing Ecosystems Flashcards

1
Q

Describe neoclassical economics

A
  • buyers want lowest price, sellers want highest price
  • results in a compromise price, and the “right” quantities are sold
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2
Q

What are 4 assumptions of the neoclassical theory?
Why are these problematic?

A
  1. resources are infinite or replaceable
  2. long-term effects should be ignored
  3. costs and benefits are internal
  4. growth is good & it’s the only thing that matters

Problem: massive enviro implications!! Not at all sustainable

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3
Q

Tragedy of the Commons=

The tragedy of the commons is strongly connected to ____ ____

A

= analogy that shows how people driven by self-interest can end up destroying the resource that they all depend on

Malthusian catastrophe

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4
Q

Neoclassical economics assumes that costs and benefits are internal. Why is this not the case?

A

everything is connected! Your decisions will always impact others somehow
= externalities (can be + or -, usually - in this case)

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5
Q

What could be a solution to neoclassical economics and the problems it has?

A

think beyond a single economic bottom line (which is the net income of a company/ gov- traditional economics)

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6
Q

single bottom line system=

A

generating profit is the only focus
- only considering themselves

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7
Q

triple bottom line system (3BL or TBL)=

A

being socially and environmentally responsible is used together with profitability to evaluate the performance/ success of a company.
Considers:
- economics (profit)
- social (people)
- environmental (planet)

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8
Q

What are the 3 P’s of the 3BL system?

  • When is it sustainable?
  • When is it “bearable”?
  • When is it “Viable”?
  • When is it “Equitable”?
A

People, planet, profit

  • Sustainable only when all 3 are considered (people, planet, profit)
  • Bearable: planet and people are considered
  • Viable: planet and profit are considered
  • Equitable: people and profit are considered
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9
Q

Ecosystem goods and services=

A

the benefits humans derive (directly or indirectly) from ecosystem functions

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10
Q

ecosystem function=

A

the capacity of natural processes & components to provide goods & services that satisfy human needs (directly or indirectly)

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11
Q

What are the 4 types of ecosystem services?

A
  • provisioning
  • regulating
  • cultural
  • supporting
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12
Q

ecosystem services: provisioning=

list 4 examples

A

the delivery (provisioning) of products that we directly use
- water
- food
- energy
- medicine

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13
Q

ecosystem services: regulating=

list 1 example

A

services provided that regulate our environment
- flood control

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14
Q

ecosystem services: cultural

list 2 examples

A

“non-material” benefits that enrich the human experience

  • hiking
  • nature- inspired art
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15
Q

ecosystem services: supporting

give 1 example

A

the provision (delivery) of ecosystem processes needed to support life and all other ecosystem services
* essential to survival of us and the planet

  • soil formation
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16
Q

Who introduced the triple bottom line system? When?

A

John Elkington in 1994

17
Q

Given this list of ecosystem services, which category would each be in?
1. nutrient cycling
2. water regulation
3. food production

A
  1. supporting category
  2. provisioning category (because the regulation of hydrological flows= provisioning of water for our different sectors)
  3. provisioning category
18
Q

ecosystem valuation= using ___ as a common unit

A

money

19
Q

capital=

A

goods & services of economic value; resources that can be used to produce goods

20
Q

social capital=

A

the value of relationships between people

21
Q

natural capital=

A

the summation of all the ecosystem services on earth, available to us for free

22
Q

ecosystem valuation=

A

the assignment of economic value to an ecosystem or ecosystem services
*values are based on current market prices; constantly updated

23
Q

ecosystem valuation often represents:
1.
2.

A
  1. the monetary cost of replacing the ecosystem service
  2. the monetary value of the capital gained from the resource (based on historical data)
24
Q

Ecosystem valuation
The value of forest carbon (carbon sequestration) in Alberta would be $_____ based on current amount stored (4.8 billion tonnes)

A

$144 billion

25
Q

economic development=

A

progress made toward a sustainable economic system

26
Q

have we achieved a sustainable economic system yet?

A

no :(
most countries still support a rapid economic growth rather than a sustainable economic development (especially developing countries)
- this is partly b/c of pressure from public (jobs etc)

27
Q

T/F
many ecosystem services are only substitutable (replaceable) up to a certain point

A

true

28
Q
  • which ecosystem service has the highest global value?
  • Are marine or terrestrial ecosystems more valuable?
  • give 2 examples of places with very high global value
A
  • nutrient cycle
  • marine
  • amazon rainforest, coasts
29
Q

If an ecosystem services completely loses its value, what does that mean?

A

we’ve destroyed it/ overused it :(