Environmental & oCCUPATIONAl Health Engineering TEchnology Mrs. Boyd OSH 320

Economics & environmental

Market economy Controlled by individuals (pricing, production and distribution) U.S. and Europe demonstrate this type economy

Command Economy Controlled by the government or state China is a good example of this type of economy

Example: Waste Water Permit You are given guidelines for your industry from the City of Murray if they do your pre-treatment (you don’t go straight into the creek) Oil and Grease = not to exceed 5 mg/L Total Suspended Solids = not to exceed 10 mg/L Phosphorus= not to exceed 3 mg/L

Example: Waste water permit (cont.) Biochemical oxygen demand= 1 pound of BOD or less (Surcharge - $3/pound of BOD) pH = 7.8 or lower Your plant produces 10,000 pounds of BOD in January 10,000 pounds – 1 pound = 9,999 pounds X $3 = $29,997 (surcharge)

Industry Industry in this example is an example of a market economy They are given permit guidelines from the City of Murray They can choose to produce more than what is required and pay a surcharge (type of fee)

City of Murray Waste water plant City Waste Water Plant is an example of a command economy. It is controlled by the state and fines will be brought against them for being of violation of what the KY Division of Water has told them is their permitted amount They are unable to just pay surcharges

Class Activity We will have 3 separate groups Regulators Ace Deuce Petrochemicals

Regulators Ask the industries what their abatement costs are Come up with 2 different theories Command and control route –permit and fines Market-based environmental policy route-limit and let them buy and trade permits for a price beyond that limit

Deuce and Ace Once you get your limit Come up with abatement cost and ideas on how many extra permits would be needed Present and then talk about trade with opposing company

Green Taxes Taxes levied on raw materials Promotes more efficient use of resources Automobile manufacturers Taxes can be used to stimulate a more efficient use of resources Coaling mining Severance tax (user tax)

Full Cost Pricing Cost of product includes taxing Electrical companies are made to pay an extra 15% for environmental externalities when improving plants Full cost pricing is beneficial part of cost-benefit analysis

Economic incentives Money given to companies to encourage research and development Government might donate land Government grants Tax breaks Individuals Installation of solar panels in the 80’s ~ tax credits

Tradable or Marketable permits Companies that produce air and water pollution A way for the government to regulate pollution License that allow a certain amount of emissions They can be bought in sold

Clean Air Act 1990 amendment Marketable permits established for sulfur dioxide Previously state and government just set limits for sulfur dioxide Companies had no incentive to produce less

Marketable permit-Example Your company produces 3,000 tons of SO2 Limit of releasing only 1,500 tons S02 You will install engineering device to reduce you levels to 750 tons You will now have 750 emissions “credit”

Frontier ethics Helps promote social order View of the Earth as unlimited resources for human use only Life is short, so use resources as quickly as we can Relates back to the way of thinking our ancestors had

Sustainable ethics Resources are limited They are not exclusively for human use/ecological justice Not a new thought process Native Americans use this methodology-central to long term survival of people

Directive principles The Earth’s resources are limited Humans are a part of nature Key to success is cooperation Natural systems are essential to human welfare

5 operating principles Conservation Recycling Renewable-resource use Restoration Population control

Intergenerational equity Fairness to future generations Right to benefit from the Earth We have an obligation to protect the Earth Environmental justice Fossil fuel users Do users of fossil fuels have obligations to those that do not?

Biocentric views Non human inhabitants to be of primary concern Human priorities should take a back seat Biodiversity is more important than human welfare Doesn’t take in regard to economic value of those decisions

Ecocentric view Evolution, adaptation, and nutrients cycles to be most important Whole is more important than the individual A deer herd could be culled to protect its habitat This book is heavily weighted with this viewpoint