1. Introduction The Origins Of Environmental Economics Presented By :
Ahmad Ullah Qazi
Ahmad Mujtaba
Faheem Ullah Khan
Haad Khan

2. History
It starts from 1950s when Resource for the Future (RFF) was formed.
Main focus on natural resources Scarcity
President’s Material Policy Commission or the Paley Commission
The main focus of this commission was to check the scarcity and growth

3. Beginning The actual beginning came in 1960s
Political backdrop and Rachael Carsons Silent Spring in 1963
Limitations by the environmental pollution and need of governance
The three main uses points of agro chemicals

4. Rising Tide of External Effects
The term of External effects took birth
Externality included all those in Pigou definition in 1920 which he termed as polluters.
It had no control as economic system was not worth while.
Intervention was required.

5. Modern Day welfare Economics
Based on cost benefit analysis
Concept of Human preferences and willingness to pay
It was established as part of Welfare economics in 1930s and 10940s by Dupuit, Hicks, Kaldor and many others.

6. Military cost was highlighted and water was checked.
In 1958 three seminal works appeared
Eckstein’s Water Resource Development
Krutilla & Eckstein’s Multipurpose River Development and
McKean’s Efficiency in Government Through Systems Analysis

7. Its goal was the implication of the cost benefit and theoretical study
The projects to pay of the losers that they don’t suffer and the polluters still earn profit.
Externalities to be reduced by Government intervention

8. Natural Resource Economics Vs Environmental Economics
Optimum level of expenditure
Former: rates of exhaustible resource depletion and the determination of optimal harvest rates for renewable resources.
Latter: Pollutionary impacts
Impacts decreased in cumulative economic growth and pollutant discussion

9. The growth theory demanded treatises in 1970.
Mathematical models formed for dealing with real world issues
In1973 OPEC got into concern when oil prices had increased
Concern for Fossil-fuel dependent Economic System

10. Fishery and other renewable extinction concern over free for all case
Need for property rights
Hardin’s 1968 paper “The Tragedy of the Commons”
Till date any written material is to be found on natural resource apart from a perspective given by Fischer in 1981.

11. The finite resource of minerals, water, knowledge and energy to be the ambassador of sustainable growth for future.
Forms the base of ecological economics.
The First law of Thermodynamics
All resources put into use should be turned into waste

12. SPACE SHIP THEORY Change in lifestyle for economic growth
Leads to anti growth notion due lifestyle change
Ricardo’s concept of increasing marginal cost.
Concept of “SPACESHIP EARTH” by boulding.
The finite resource of minerals, water and energy to be the ambassador of sustainable growth for future.

13. An optimum economic activity for regeneration of natural resources.
Matter and energy cannot be regenerated but its pollution can be controlled.
The impact of externality and the use of natural resource forms the basis of a natural resource being pervasive.

14. Problem of Social Cost Given by Coase 2 points: 1. Tax on the polluter
2. Tax on the victim
Opened doors for free market environmentalism.
The second condition is rare where the polluter is on low income.

15. Conclusion:
The Economic growth depended upon the optimality of resource expenditure and growth in technology
Specific amount of government intervention is a necessity to sustainable growth
Tradable permit.

16. Thanks