Economics and Policies and the environment Presentation Subtitle

Natural, human, financial, manufactured resources

Natural resources Goods and services produced naturally by the earth

Human and financial resources Human resources Human efforts that provide labor, new ideas, culture, and organization Financial resources Cash and investments used to provide goods and services.

Manufactured resources Humans make these resources from natural resources, like tools, machinery, transportation.

Pure command vs pure free market system Government makes all decisions about goods and services produced. Pure free-market: only a theory no government interference based on competition

Unsustainable economic growth vs Unsustainable economic growth vs. environmentally sustainable development Unsustainable economic growth: earth’s natural resources are important, but not vital because we can find substitutes for resources depletion of natural resources will not limit economic growth Environmentally sustainable development: increase quality of goods and services without damaging natural resources recycling preserve biodiversity stabilize population growth tax pollution and waste instead of income and wealth

Conventional economists vs. ecological economists Economics is separate from natural resources Natural resources are not vital to economics because substitutes can be found for scarce resources Humans will think of something. Using all natural resources won’t limit economic growth. Ecological: economics and environment are directly related earth’s resources are vital for supporting all life and economic systems conventional economics is unsustainable integrate ecology with economics

Appropriate technology humans doing the work instead of computers small machines that are easy to understand and repair use local, renewable resources factories use materials efficiently and produce very little pollution Examples: passive solar heating wind turbines solar panels electric vehicles wastewater gardens drip irrigation compost

GNI and GDP are not useful GNI = gross national income GDP = gross domestic product hide harmful environmental and social effects of making “stuff” pollution, crime, sickness, death considered positive gains in GDP and GNI using natural resources is good for the economy, but wipes out wetlands, wildlife, forests GNI and GDP do not consider volunteering, child care from family members, growing our own food, cooking, cleaning, and repairs we do ourselves Only measure money spent, not value received tells nothing about harmful effects of economic growth (pollution, landfills)

Internal and external costs paid for by the consumer/buyer of goods and services include cost of labor, factory, marketing, shipping, and profit Examples??? External costs: unexpected costs due to goods and services that pop up later Examples???

Full-cost pricing Including all internal and possible external costs in the price of goods and services Full-cost pricing is not usually used. Why? (6 reasons) page 700

Optimum level of pollution How can cost of pollution be figured? Mitigation Willingness to pay Maintenance and protection costs What’s that??? (page 701) Write down definitions and discuss

Direct, indirect, and repercussion costs What’s that??? (page 701-702) Write down definitions and discuss.

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