Economics, Environment, and Sustainability G. Tyler Miller’s Living in the Environment 14 th Edition Chapter 26 G. Tyler Miller’s Living in the Environment 14 th Edition Chapter 26

Key Concepts  Types of economic systems  Economics and resource management  Monitoring economic and environmental progress  Full-cost pricing  Shifting to environmentally sustainable economies  Effect and reduction of poverty

Economic Resources  Capital  Human resources  Natural resources  Physical resources

Economic Systems  Pure free-market economic systems  Demand, supply and price  Market price equilibrium point  Marginal costs and benefits  Price inelasticity  Government involvement in markets

Neoclassical vs. Ecological Economists  Differing views of natural resources  Differing views on economic growth  Effective property rights  “Eco-economy”  Differing views of natural resources  Differing views on economic growth  Effective property rights  “Eco-economy”

Ecological Economics Fig p. 587

Economic Growth  Environmentally sustainable economic development  Economic growth Fig p. 588

Economics of Pollution Control  Optimum level of pollution  Cost-benefit analysis (CBA)  Green taxes and fees

Monitoring Environmental Progress  Gross domestic product (GDP)  Per capita GDP  Limits of GDP and Per capita GDP  Genuine progress indicator (GPI)  Index of Sustainable Economic Welfare  Materials balance measurements

Harmful External Costs and Full- Cost Pricing  Internal costs  External costs  External benefits  Positive and negative externalities  Full-cost pricing

Improving Environmental Quality and Shifting to Full-Cost Pricing  Government subsidies and tax breaks  Green taxes (trade-offs: Fig p. 595)  Environmental tax reform  Innovation-friendly regulations  Tradable pollution and resource-use rights  Market forces

Tradable Environmental Permits: Trade-offs Fig p. 597

Reducing Poverty to Improve Environmental Quality and Human Well-Being  Poverty  Premature death and health problems  Environmental impact of poverty  Poor help themselves  Role of the World Bank Fig p. 599

Making the Transition to Environmentally Sustainable Economies  Mimic natural systems  Sunset businesses  Eco-friendly businesses  Improve public awareness Refer to Case Study p