1. The Environment and Development
Chapter 10
The Environment and Development
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2. Economics and the Environment
Environmental issues affect, and are affected by, economic development
Poverty and ignorance may lead to non-sustainable use of environmental resources
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3. Environment and Development: The Basic Issues
Sustainable development and environmental accounting
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4. Environment and Development: The Basic Issues
Sustainable net national product is:
Where
NNI* is sustainable national income
GNI is Gross national income
Dm is the depreciation of manufactured
capital assets
Dn is the depreciation of environmental
capital
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5. Environment and Development: The Basic Issues
Alternatively, sustainable net national product is:
Where
NNI*, GNI, Dm, and Dn are as before
R is expenditure needed to restore
environmental capital
A is expenditure required to avert
destruction of environmental capital
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6. Environment and Development: The Basic Issues
Sustainable development and environmental accounting
Population, resources, and the environment
Poverty and the environment
Growth versus the environment
Rural development and the environment
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7. Environment and Development: The Basic Issues (cont’d)
Urban development and the environment
The global environment
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8. The Scope of Environmental Degradation: A Brief Statistical Review
Environmental problems have consequences both for health and productivity
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9. Table 10.1
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10. Table 10.1 (cont’d)
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11. Rural Development and the Environment: A Tale of Two Villages
Representative African village
Representative South American village
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12. Traditional Economic Models of the Environment
Privately owned resources
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13. Figure 10.1
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14. Figure 10.2
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15. Traditional Economic Models of the Environment
Privately owned resources
Common property resources
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16. Figure 10.3
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17. Traditional Economic Models of the Environment
Privately owned resources
Common property resources
Public goods and bads: regional environmental degradation and the free-rider problem
Limitations of the public goods framework
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18. Figure 10.4
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19. Urban Development and the Environment
The ecology of urban slums
Industrialization and urban air pollution
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20. Figure 10.5
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21. Figure 10.6
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22. Urban Development and the Environment
The ecology of urban slums
Industrialization and urban air pollution
Problems of congestion and the availability of clean water and sanitation
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23. The Need for Policy Reform
The recognition that action to reduce environmental hazards has been insufficient is now widespread
However, budgets are limited
Better pricing policies would improve matters
Inclusion of women in the design of environmental policy is important
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24. The Global Environment: Rain Forest Destruction and Greenhouse Gases
Many scientists are alarmed by recent evidence regarding ozone depletion and global warming
Economists also are concerned with the costs of global climate change
The solutions seem to involve both LDCs and industrialized countries
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25. Policy Options in Developing and Developed Countries
What LDCs can do
Proper resource pricing
Community involvement
Clearer property rights and resource ownership
Improved economic alternatives for the poor
Improved economic status of women
Industrial emissions abatement policies
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26. Policy Options in Developing and Developed Countries (cont’d)
How developed countries can help LDCs
Trade policies
Debt relief and debt for nature swaps
Development assistance
What developed countries can do
Emissions controls
R&D
Import restrictions
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27. Table 10.2
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28. Concepts for Review Absorptive capacity Biomass fuels
Clean technologies
Common property resource
Consumer surplus
Debt-for-nature swap
Deforestation
Desertification
Environmental accounting
Environmental capital
Externality
Free-rider problem
Global warming
Greenhouse gases
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29. Concepts for Review (cont’d)
Internalization
Marginal cost
Marginal net benefit
Ozone depletion
Pollution tax
Present value
Private costs
Producer surplus
Property rights
Public bad
Public good
Scarcity rent
Social costs
Soil erosion
Sustainable development
Sustainable national income
Total net benefit
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