5.1 Economics and International Cooperation Unit 5: Economics, Policy and the Future

5.1 Economics and International Cooperation Objectives Foldable Using the objectives handout, trim the paper along the top, right side and bottom of the outside box to fit the notebook Cut the lines between each box to make a flap Tape or glue the left side of this contraption into your ISN (this allows you to fold the objectives back later) Later, you will write down the objectives once you’ve learned them L 5.1 Economics and International Cooperation

5.1 Economics and International Cooperation Getting started… Make a list of environmental issues that cross international boundaries. Which do you think should be our top two priorities? Why would enacting international agreements on these issues might be difficult? R 5.1 Economics and International Cooperation

International Development and Cooperation Sustainability is the condition in which human needs are met in such a way that a human population can survive indefinitely. We live in a time of globalization, when environmental and social conditions are linked across political borders worldwide. Increasingly, governments, organizations, and business around the world have a need to work together. L End of slide 5.1 Economics and International Cooperation

International Development and Cooperation People debate about whether current levels of population growth and resource use are sustainable, and who is responsible for environmental problems. Scientists do not agree on how humans are affecting the planet’s ecosystems. People worldwide are worried about running short of resources such as fertile soil and fresh water. L End of slide 5.1 Economics and International Cooperation

Sustainable Development Many meetings and agreements among international governments have dealt with environmental concerns along with economic and political concerns. The Earth Summit of 1992, for example, was a sign of new levels of international environmental awareness and cooperation. L End of slide 5.1 Economics and International Cooperation

Climate and Atmosphere International organizations and agreements related to climate and the atmosphere also exist. The Kyoto Protocol, for example, attempts to avoid or slow down global warming by reducing greenhouse-gas emissions. The United States did not sign this particular treaty mainly because it would be costly to implement and that is does not guarantee a stable climate. L End of slide 5.1 Economics and International Cooperation

International Cooperation 5.1 Economics and International Cooperation

5.1 Economics and International Cooperation

Economics and the Environment Economics is the study of how individuals and groups make decisions about the production, distribution, and consumption of limited resources as they attempt to fulfill their needs and wants. Economists say that an economic system is successful when there is an increase in the flow of money and products within a market. Economies, however, draw resources from the environment and may return waste or cause damage. Economic systems are, in fact, contained within and dependent upon the environment. L End of slide 5.1 Economics and International Cooperation

Economics and the Environment Economists see environmental problems as market failures. The market has failed if the price of something does not reflect its true cost. For example, the price of gasoline does not reflect the expenses caused by auto emissions, such as that of the illnesses caused by air pollution, which cost society billions of dollars a year. In a balanced economic system, the price of gasoline should reflect these costs. L End of slide 5.1 Economics and International Cooperation

Economics and the Environment A complete economic model shows that economic systems operate within natural systems. R 5.1 Economics and International Cooperation

Regulation and Economic Incentives The government has tried many ways to regulate environmental damage such as pollution. Governments may also create economic incentives by paying out money for actions that benefit society. L End of slide 5.1 Economics and International Cooperation

Regulation and Economic Incentives Governments may also punishing people with fines and sentences for actions that harm the environment. However, regulations are criticized when they are difficult to enforce, do not distribute costs evenly, or do not control environmental damage. L End of slide 5.1 Economics and International Cooperation

5.1 Economics and International Cooperation Private Efforts Businesses and private organizations also play a role in addressing environmental problems. Businesses may donate land for parks or preserves, donate money to environmental causes, or recycle their wastes. Private organizations often cooperate with each other and with governments to conduct research or create plans for environmental management. L End of slide 5.1 Economics and International Cooperation

5.1 Economics and International Cooperation Private Efforts Nonprofit organizations, such as the Nature Conservancy, use a simple economic strategy of collecting donations to purchase land to preserve ecosystems. This group has created preserves in all 50 states and in 28 other countries. L End of slide 5.1 Economics and International Cooperation

5.1 Economics and International Cooperation Summing things up… Choose one of the following: Mini Quiz: How does the Nature Conservancy preserve ecosystems? Name two countries that have gotten around or opted out of whaling regulations. Create a news-style report or commentary on a major international summit or conference. Go back and fill out the objectives at the beginning of the section. R L 5.1 Economics and International Cooperation