Environmental Economics Hendrik Wolff

What is EE? Brief Outline of “some” Environmental Problems – Population Growth – Fossil Fuel burning and Carbon Dioxide – Acid Rain and Sulfur Dioxide – Stratospheric Ozone Depletion

State of the Environment Population Growth puts pressure on environmental resources

Ice Core Measures -- Vostoc in the Antarctica.

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9  2012: atmospheric CO 2 = 394ppm

10 Present and Future Mean Temperature

11 San Francisco Average Daily Temperature Distribution RED: Projected A2 scenario from CCSM 3.0 in IPCC (2007) BLUE: Normals

12 Boston San Francisco Houston Average Daily Temperature Distribution RED: Projected A2 scenario from CCSM 3.0 in IPCC (2007) BLUE: Normals

County Temperature Data 13

County Temperature Data 14 Drawback: 1 day of 115 F & 4 days of 65 F  50 CDD 5 days of 75 F  50 CDD

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22 116% Increase 33% Decrease

Differential trends in Carbon Dioxide (CO2) versus Sulfur Dioxide (SO2)

SO2: First Big “Success” Story of Impact of “Environmental Economics” on Policy SO2  Acid Rain  Dying forests

Cap and Trade of SO2 emissions By late eighties: U.S. emits 20 million tons SO2/year 1990 C & T established with goal to cut emissions by 50% over 10 years

Cap and Trade of SO2 emissions By late eighties: U.S. emits 20 million tons SO2/year 1990 C & T established with goal to cut emissions by 50% over 10 years Figure of “price of sulfur” = marginal abatement cost of SO2 control dropped from USD 500 to USD65

Ozone Depletion in Stratosphere Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-B  skin cancer) Refrigerants (i.e. CFCs) destroy O3 molecules World observes steady magnitude of ozone hole in stratosphere since : Montreal Protocol bans (most) CFCs Ozone hole slowly starting now to decrease BUT global warming cools stratosphere, difficult to predict...

Ozone Depletion in Stratosphere Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-B  skin cancer) Refrigerants (i.e. CFCs) destroy O3 molecules World observes steady magnitude of ozone hole in stratosphere since : Montreal Protocol bans (most) CFCs Ozone hole slowly starting now to decrease BUT global warming cools stratosphere, difficult to predict...

Which Pollutants Increase/Decrease? Increase – CO2 – Illegal oceanic waste dumping – Nuclear contamination – Particulate Matter in Urban Areas (Developing Countries) Decrease – SO2 in U.S. – Local Water Pollution  Homework

Which Pollutants Increase/Decrease? Increase – CO2 – Illegal oceanic waste dumping – Nuclear contamination – Particulate Matter in Urban Areas (Developing Countries) Decrease – SO2 in U.S. – CFCs worldwide – Local Water Pollution  Homework

Which Pollutants Increase/Decrease? Increase – CO2 – Illegal oceanic waste dumping – Nuclear contamination – Particulate Matter in Urban Areas (Developing Countries) Decrease – SO2 in U.S. – CFCs worldwide – Local Water Pollution  Homework