1. Chapter 27: Dollars and Environmental Sense: Economics of Environmental Issues

2. The Economic Importance of the Environment In the mid-1990’s US spent ~$115 billion/ year to deal w/ pollution. Effects of pollutants:

3. The Economic Importance of the Environment

4. The Environment as a Commons “The tragedy of the commons.”

5. The Environment as a Commons There are many examples of commons;

6. The Environment as a Commons Recreation is a problem of the commons

7. Low Growth Rate and Therefore Low Profit as a Factor in Exploitation The second reason individuals tend to overexploit natural resources held in common is:

8. Externalities

9. Some suggest that environmental and ecological costs should be included in costs of production through taxation or fees.

10. Public Service Functions of Nature

11. How is the Future Valued Because we know we are mortal we tend to value personal wealth and goods more if they are available now than if they are promised in the future.

12. Acceptability of Risks and Costs

13. US Toxic Substances Control Act

14. Global Issue: Who Bears the Cost?

15. How do we Achieve a Goal?