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Chapter 20 Sustainability, Economics and Equity
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Objectives Discuss sustainability in a variety of environmental contexts including human well being Give example of economic tools to solve environmental problems. Define GDP and evaluate ways in which the use of economic analysis can do a better fob of including the costs of activities on the environment (internal and external costs) Understand the role global and US agencies, laws and regulations in protecting natural and human capital.
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Case Study Assembly Plants, Free Trade and Sustainable Systems: Maquiladoras in Mexico ? What is a Maquiladora ? Why are they located in Mexico ?What are problems that arise from the location of the Maquiladora ? What is the goal of environmental regulation
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I. Sustainability the goal of sound environmental science and policy Economics: examines how humans either as individuals or companies allocate resources in production, distribution and consumption of goods and services. Supply, Demand and the Market A market occurs wherever people engage in trade. In a market economy, the cost of the good is determined by supply and demand.
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Capital: Natural, Manufactured, Human Business has no obligation other than to make a profit for owners or investors; economic decisions are driven by supply and price. Markets typically do not take cost of production into account: externalities/external costs Internal costs The Lorax: Research an organization that working towards land conservation. Name the organization and briefly describe its actions.
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A manufacturer will supply a certain number of units of an item based on the revenue that will be created. A consumer will demand a certain number of units of that item based on the price paid. The intersection determines the market equilibrium Fig. 24-3, p. 571
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Supply and Demand with Externalities When the cost of emitting pollutants is included in the price of a good the price increases, causing a shift in the supply curve and a new equilibrium.
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Marginal Cost / Marginal Benefit Cost is how much it costs producer to produce one more unit: Coal mining-initially cheap to get easy coal but each additional unit of coal is more expensive to get-cost goes up with each additional unit of coal taken. Benefit from the consumer end-what are we willing to give up to get that one additional piece of good-what is the benefit of that hard to get coal if enviro clean up becomes more costly and difficult?
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http://www.npr.org/blogs/money/2011/10/28/141807689/ why-gdp-is-like-gpahttp://www.npr.org/blogs/money/2011/10/28/141807689/ why-gdp-is-like-gpa GDP: Gross Domestic Product. Gauge economic wealth of a country in terms of productivity and consumption. GPI (Genuine progress indicator) a value that assesses environmental costs Full Cost Pricing: Internalizing the External Costs Human Health Effects of Climate Change-NPR II. Sustainable Economic Systems: Economic Tools to Deal with Environmental Problems
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Solutions! Eco-Labeling: Fair trade coffee; fish caught with sustainable methods Green Taxes-Effluent Fees: tax pollution and waste instead of wages and profits Subsidy Shift/remove subsidies that encourage excessive use of fossil fuels, water etc
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Provide tax deductions/rebates implementation or use of renewables/conservation measures (electric car, low flow toilet, thermal-pane window) Tradable Pollution Rights: Cap and Trade Post a Pollution Bond Green Jobs Provide Research grants to develop technologies that foster sustainable resource use. Microlendinghttp://www.kiva.org/http://www.kiva.org/
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III. The Role of Government in Environmental Management Environmental Worldviews: how you think the world works, how you view your role in it and what your believe to be proper environmental behavior. –Anthropocentric: human-centered, considers that human beings have intrinsic value and nature should provide for our needs. –Biocentric: life-centered, says humans are just one of many species on Earth, all of which have equal value. –Ecocentric: Earth-centered, places equal value on all living organisms and the ecosystems in which they live, and it demands that we consider nature free of any associations with our own existence.
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How is Environmental Policy Made? –Function of a democratic government is to develop and implement policies for dealing with issues. Policy is composed of laws, regulations and funding. –Lobbying: Individuals or groups try to persuade legislators to vote or act in their favor –Data from U. S. Senate Office of Public Records shows that in 2009 more than 13,7– registered corporate lobbyists spent $3.5 billion on efforts to influence 538 members of congress –an average of 6.5 million per member. –Corporations are the source of billions of dollars used to finance election campaigns.
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Role of Citizen Environmental Groups World Agencies: UN, UNEP, World Bank, WHO NGOs-nonprofit/nongovernmental organizations: WWF, The Nature Conservancy, Sierra Club, Greenpeace, Natural Resources Defense Council, Conservation International, International Rivers United States Agencies: EPA, OSHA, DOE Global Environmental Security: research shows a strong correlation between growing scarcities of resources such as cropland, water, forests and the spread of civil unrest. Many failing states become training grounds for terrorists and drug producers and create environmental refugees. Environmental security should be a major focus of diplomacy, policy and aid. Create a World Environmental Organization.
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