Chapter 27: Dollars and Environmental Sense: Economics of Environmental Issues

The Economic Importance of the Environment In the mid-1990’s US spent ~$115 billion/ year to deal w/ pollution. Effects of pollutants:

The Economic Importance of the Environment

The Environment as a Commons “The tragedy of the commons.”

The Environment as a Commons There are many examples of commons;

The Environment as a Commons Recreation is a problem of the commons

Low Growth Rate and Therefore Low Profit as a Factor in Exploitation The second reason individuals tend to overexploit natural resources held in common is:

Externalities

Some suggest that environmental and ecological costs should be included in costs of production through taxation or fees.

Public Service Functions of Nature

How is the Future Valued Because we know we are mortal we tend to value personal wealth and goods more if they are available now than if they are promised in the future.

Acceptability of Risks and Costs

US Toxic Substances Control Act

Global Issue: Who Bears the Cost?

How do we Achieve a Goal?