© 2011 Pearson Education, Inc. Environmental Ethics and Economics: Values and Choices Economics: Approaches and Environmental Implications I AP Environmental Science Mr. Grant Lesson 7

© 2011 Pearson Education, Inc. Objectives: Define the term environmental justice. Explain how our economies exist within the environment and rely on ecosystem services. Describe precepts of classical and neoclassical economic theory, and summarize their implications for the environment. Compare the concepts of economic growth, economic health, and sustainability.

© 2011 Pearson Education, Inc. Define the term environmental justice. A movement based on a moral sense of fairness and equality that seeks to expand society’s domain of ethical concern from men to women, from humans to nonhumans, from rich to poor, and from majority races and ethnic groups to minority ones.

© 2011 Pearson Education, Inc. Explain how our economies exist within the environment and rely on ecosystem services. Human economies are a subset of the environment and depend on ecological systems for natural resources and for ecosystem services. Economics Economics studies how people use resources to provide goods and services in the face of demand Types of modern economies Subsistence economy Capitalist market economy Centrally planned economy Mixed economy

© 2011 Pearson Education, Inc. Explain how our economies exist within the environment and rely on ecosystem services. Human economies are a subset of the environment and depend on ecological systems for natural resources and for ecosystem services. The environment vs. economics Uranium mining: ethics vs. economics Governments intervene in a market economy

© 2011 Pearson Education, Inc. Explain how our economies exist within the environment and rely on ecosystem services. Human economies are a subset of the environment and depend on ecological systems for natural resources and for ecosystem services. The economy exists within the environment Economies receive inputs (resources) o Process them o Discharge outputs (waste) Traditional economics o Ignores the environment o Resources are “limitless” o Wastes are absorbed at no cost

© 2011 Pearson Education, Inc. Explain how our economies exist within the environment and rely on ecosystem services. Human economies are a subset of the environment and depend on ecological systems for natural resources and for ecosystem services. Environmental view of economics Human economies exist within, and depend on, the environment for goods and services

© 2011 Pearson Education, Inc. Explain how our economies exist within the environment and rely on ecosystem services. Ecosystem services, provided for free by nature, enable our economies to prosper. To degrade ecosystem services is to threaten our economic well Environmental systems support economies Ecosystem services = essential services support the life that makes economic activities possible o Soil formation o Pollination o Water purification o Nutrient cycling o Climate regulation o Waste treatment 15 of 24 ecosystem services are being degraded or used unsustainably

© 2011 Pearson Education, Inc. Describe precepts of classical and neoclassical economic theory, and summarize their implications for the environment. Classical economic theory proposes that individuals acting for their own economic good can benefit society as a whole. This view has provided a philosophical basis for free-market capitalism. Neoclassical economics focuses on supply and demand as forces that drive economic activity, and quantifies costs and benefits. Four assumptions of neoclassical economic theory promote negative environmental impacts. -Assumption: resources are infinite -Assumption: costs and benefits are internal -Assumption: discounted long-term effects -Assumption: growth is good

© 2011 Pearson Education, Inc. Compare the concepts of economic growth, economic health, and sustainability. Conventional economic theory has promoted endless economic growth, with little regard to possible environmental impact. -Economic growth is always good news -Modern global economic growth is unprecedented -The dramatic rise in per-person consumption has severe environmental consequences -Can growth go on forever?

© 2011 Pearson Education, Inc. Compare the concepts of economic growth, economic health, and sustainability. Economic growth does not necessarily lead to social well- being. -Cornucopians vs. Cassandras -Computer simulations project future trends o Current consumption patterns predict economic collapse o Results of policies of sustainability

© 2011 Pearson Education, Inc. Compare the concepts of economic growth, economic health, and sustainability. Some economists believe that developing a steady state economy will be needed to achieve sustainability. -Other types of economies… Environmental economics Ecological economics Steady-state economies o As resources became harder to find, economic growth slows and stabilizes (John Stuart Mill, 1806–1873) o This does not mean a lower quality of life o Technology and behavior will enhance sustainability