Economics & the Environment

SUPPLY & DEMAND The greater the demand for a limited supply the more it is worth. Page 17 oil chart

COST & BENEFITS Cost benefits analysis Balances the cost of the action against the benefit one expects from it. Depends on who is doing the analysis

RISK ASSESSMENT Cost benefit analysis involves risk assessment. Creates cost effective ways to protect our health & the environment

DEVELOPED COUNTRIES Higher average incomes Slower population growth Diverse industrial economies Stronger social support systems

DEVELOPING COUNTRIES Lower average income Simple & agriculture based economies Rapid population growth

POPULATION & CONSUMPTION Two Root Causes 1) Human population in some areas is growing to quickly 2) People are using up, Wasting, or Polluting many natural resources faster than they can renew

LOCAL POPULATION PRESSURES Population in an area grows rapidly Not enough resources Food, Jobs & education can't keep up Struggle for survival Deforestation Animal extinction Soil exhaustion Starvation Disease

Consumption Trends Developed nations use 75% of the earths resources Even though they only make up 20% of the worlds population This rate of consumption creates More waste & pollution per person than in developing counties Page 19 Table 3 & Figure 18

What is a sustainable world? In a sustainable world human needs are met in such a way that a human population can survive indefinitely.