1. Economics, Politics, Environment, and Sustainability Brian Kaestner Saint Mary’s Hall Brian Kaestner Saint Mary’s Hall Thanks to Miller and Clements

2. Economic Resources  Economic decisions  Economic resources  Natural resources  Human resources  Financial resources  Manufactured resources  Cultivated resources

3. Quantity Price (low to high) Demand curve Supply curve Quantity demanded Quantity supplied Surplus If the price is too high, more oil is available than buyers are willing to buy Quantity supplied Quantity demanded At this market equilibrium price, the quantity of oil that suppliers are willing to sell is the same as the quantity buyers are willing to buy If the price is too low buyers want to buy more than supplies are willing to sell Shortage

4. OldNew Quantity Price (low to high) Old demand curve New demand curve Supply curve New equilibrium price and quantity Black New Old Old equilibrium price and quantity Because of the shortage, buyer are willing to pay more. This establishes a new market equilibrium point Increased demand is higher than supply so there is a shortage

5. Old Quantity Price (low to high) New Old Supply is lower than demand, so there is a shortage New equilibrium price and quantity Demand curve New supply curve Old supply curve Because of the shortage, buyers are willing to pay more. This establishes a new market equilibrium point. Old equilibrium price and quantity New

6. Economic Systems  Pure command economic systems  Pure free-market economic system  Market price equilibrium point  Capitalist market economic systems  Mixed economic systems  Global market economy

7. Ecological Economics sun Earth NaturalCapital Air; water, land, soil, biodiversity,minerals, raw materials, energyresources, and dilution, degradation, and recycling services Economic Systems Production Consumption Heat Depletion of nonrenewableresources Degradation and depletion of renewable resources used faster than replenished Pollution and waste from overloading nature’s waste disposal and recycling systems Recycling and reuse

8. Economic Growth  Environmentally sustainable economic development  Economic growth Characteristic Production emphasis Natural resources Resource productivity Resource throughput Resource type emphasized Resource fate Pollution control Guiding principles Unsustainable Economic Growth Quantity Not very important Inefficient (high waste) High Nonrenewable Matter discarded Cleanup (output reduction) Risk–benefit analysis Environmentally Sustainable Economic Development Quality Very important Efficient (low waste) Low Renewable Matter recycled, reused, or composted Prevention (input reduction) Prevention and precaution

9. 025%50%75%100% Cost per unit pollutant removed ($) It is very expensive to try to get to zero pollution As more pollutants are removed, the cost of removing each additional unit increase Percentage of pollutants removed

10. 100%75%50%25%0% Low High Costs Zero discharge (toxic waste) This curve is the sum of the two bottom curves Minimal effort Most cost-effective effort Better effort Extra cost Cost to society Cleanup costs Pollution remaining

11. Harmful External Costs and Full- Cost Pricing  Internal costs  External benefit  External costs  Full-cost pricing  Internalizing external costs

12. Costs of Pollution  Direct costs  Indirect costs  Repercussion costs  Consumer (user) pays  Taxpayer pays

13. Making the Transition to Environmentally Sustainable Economies  Implementation of life-cycle management  Improving energy efficiency  Inventing more sustainable technologies  Improving public awareness

14. Case Study: Environmental Policy in the United States Purchase recyclable, recycled, and environmentally safe products Recycle cans, bottles, paper, and plastic Plant a garden Individual Donate clothes and used goods to charities Use water, energy, and other resources efficiently Use mass transit, walk, ride a bike, or carpool Laws and regulations Membership support Lawyers Courts Boycotts Environmental organizations Legal action Laws and regulations Corporations and small business Special interest groups Lobbyists Lawmaking body Public advisory Public hearing Regulating enforcement body

15. Factors Hindering Democracies in Dealing with Environmental Problems  Reactive to problems instead of proactive  Short time between elections shift focus to short-term issues  Major affected groups do not vote; no obligation on the part of politicians  Elected officials spend much time raising money to be reelected

16. Environmental Groups and Claims  Mainstream groups  Grassroots groups  Specific issue focus  Raise understanding or awareness of issues  Many groups but not much cohesiveness

17. Anti-Environmental Groups and Claims  Threatened by environmental regulations  Threats to private rights or property  Spend much time attempting to discredit legitimate groups  Often use “environmentally-friendly” sounding names  Raise questions and doubt in the minds of citizens