1. Earth at Night

2. Economics and the Environment

3. Environment and Economics Unfunded Mandates What: Federal requirements imposed on states and local governments and for which they must absorb all or most of the cost of implementation and enforcement Unfunded Mandates Review Act When: 1995 Who: Congress and the President What: Requires the federal government to pay for expensive future programs it imposes on state and local governments..

4. Conservation vs. Preservation Conservation – the sensible and careful management of natural resources Preservation – setting aside undisturbed areas, maintaining these areas in their natural state - pristine

5. Earth’s Capital Natural Capital – Earth’s resources and processes that sustain living organisms Resource degradation – the overuse of sources Pollution – the overuse of sinks Both resource degradation and pollution threaten our long-term economic future

6. Source – that part of the natural environment from which materials move Sink – that part of the natural environment that receives an input of materials

7. National Income Accounts Represent the total income of a nation for a given year GDP – gross domestic product ◦NDP – net domestic product

8. Do we really know the cost? Current national income accounting practices do not incorporate environmental factors such as natural resource depletion Cost and benefits of pollution control

9. Vocabulary…. external cost – a harmful side effect of production or consumption of a product that is borne by people not directly involved marginal cost – the additional cost associated with products marginal cost of pollution – cost in environmental damage of a unit of pollution that is emitted into the environment. marginal cost of pollution abatement – the cost to dispose of a unit of pollution in a nonpolluting way

10. Optimum amount of pollution.. When the cost of pollution = the cost to clean up the pollution True cost of environmental damage by pollution is difficult to determine because risks of unanticipated environmental catastrophes are not taken into account Flaws with the idea…

11. Vocabuarly Command and control regulation – passage of laws that set limits on levels of pollution incentive-based regulation – emission targets are established and industries are given incentives to reduce emissions emission charge – this charge is a tax on pollution

12. Vocabulary marketable waste-discharge permits- allows the holder to emit a specified amount of a given pollutant emission reduction credits (ERCs)- credits sold by industries to pollute polluter pays vs. taxpayer (or consumer) pays

13. Vocabulary full cost pricing – including the cost of pollution cleanup or prevention in the total cost of the product leverage – influence, control, pull to get result wanted subsidy - a form of government support given to a business to promote the activity performed by that group. (Examples: monetary payment, public financing, tax benefits, or tax exemptions)

14. Highly developed countries forgive or reduce debts owed by developing countries to protect biodiversity Debt for Nature Swap

15. World Bank The International Bank for Reconstruction and Development Purpose: Fight poverty and improve the living standards of people in the developing world. Established in July 1944 at the United Nations Monetary and Financial Conference and opened for business in June 1946 to help with reconstruction of nations devastated by World War ll (now has 184 members)

16. Gets Funds from more affluent member countries Most funds since 1970’s (1/3) go to developing countries to develop agricultural, education and population programs World Bank

17. Cost Benefit Analysis How much pollution should be removed? What is the cost? There enough benefit to justify the cost? How do you value environmental cost?

18. Questions to Ask….. What is the risk to the environment? What is the risk to the economy? What is the risk to society?

19. Environmental Impact Statement Purpose: Establish the impact of the project o the environment (i.e. habitats, species, ecosystems) ◦ Helps decision makers decide if the development should go ahead ◦Addresses the mitigation of potential environmental impacts associated with the development,.

20. http;;??geography.howstuffworks.com/7143-china- three-gorges-dam-video.htm http;;??geography.howstuffworks.com/7143-china- three-gorges-dam-video.htm Environmental Impact Statement  Some countries incorporate EIAs into legal framework so penalties can be enforces if conditions of the EIA are broken. Other countries just use the assessment to inform policy decisions. Baseline study includes…(Page 78) Case Study – China's Three Gorge Dam