Embed Size (px)
Citation preview
Chapter 2Chapter 2Environmental Laws, Economics and Environmental Laws, Economics and
Ethics, Part IIEthics, Part II
Readings last Week Readings last Week and this Week:and this Week:
Chapter Chapter ##1 – “Hooknose”1 – “Hooknose”
Chapter Chapter ##2 – “The Five 2 – “The Five Houses of Salmon”Houses of Salmon”
US Environmental LegislationUS Environmental Legislation
o Numerous laws passed since 1970Numerous laws passed since 1970o They address:They address:
• Clean waterClean water• Clean airClean air• Energy conservationEnergy conservation• Hazardous wasteHazardous waste• PesticidesPesticides• Federal regulation of pollutionFederal regulation of pollution
US Environmental LegislationUS Environmental Legislation
o Environmental Protection AgencyEnvironmental Protection Agency• Est. 1970Est. 1970
o National Environmental Policy Act (NEPA)National Environmental Policy Act (NEPA)• Cornerstone of Environmental LawCornerstone of Environmental Law• Requires Environmental Impact Statements Requires Environmental Impact Statements
(EIS) for any proposed federal action(EIS) for any proposed federal action• Ex: highway or dam constructionEx: highway or dam construction
• EIS must answer many questions (next slide)EIS must answer many questions (next slide)• Revolutionized environmental protection in Revolutionized environmental protection in
USUS
Environmental Impact Environmental Impact StatementsStatements
Effects of Environmental LegislationEffects of Environmental Legislation(According to EPA’s Draft Report on the Environment 2003)(According to EPA’s Draft Report on the Environment 2003)
o Since 1970,Since 1970,• 6 air pollutants have dropped by 6 air pollutants have dropped by
25%25%o Since 1990Since 1990
• wet sulfate levels decreased 20-30%wet sulfate levels decreased 20-30%o In 2002In 2002
• 94% of US had healthy drinking 94% of US had healthy drinking water (up from 79% in 1993)water (up from 79% in 1993)
o As of 2002As of 2002• 846 of 1498 Superfund Sites are 846 of 1498 Superfund Sites are
cleaned upcleaned upo Fewer streams violate water Fewer streams violate water
standardsstandards
Economics and the EnvironmentEconomics and the Environment
o Economics- study of how people use Economics- study of how people use limited resources to satisfy unlimited limited resources to satisfy unlimited wantswants• Analytical tools include modelsAnalytical tools include models
Precepts to study EconomicsPrecepts to study Economics
o Economics is utilitarianEconomics is utilitarian• Goods and services have value that can be Goods and services have value that can be
converted to currencyconverted to currency
o Rational Actor ModelRational Actor Model• Assumes all individuals spend limited Assumes all individuals spend limited
resources to maximize individual utilitiesresources to maximize individual utilities
o Ideal economy Ideal economy • Resources are allocated efficientlyResources are allocated efficiently
Optimum Level of PollutionOptimum Level of Pollution
o Optimum Level of PollutionOptimum Level of Pollution• Cost to society of having less pollution is Cost to society of having less pollution is
offset by benefits offset by benefits (short-term?)(short-term?) to society to society of activity creating pollution.of activity creating pollution.
o Must identify Must identify • Marginal Cost of Pollution- Cost of small Marginal Cost of Pollution- Cost of small
additional amount of pollution.additional amount of pollution.• Marginal Cost of Abatement- Cost of Marginal Cost of Abatement- Cost of
reducing small amount of pollution.reducing small amount of pollution.
Economic Optimum Level of Economic Optimum Level of PollutionPollution
Private vs Social Cost of Private vs Social Cost of PollutionPollution
Strategies for Pollution ControlStrategies for Pollution Control
o Command and Control SolutionsCommand and Control Solutions• Government agency requires limitations to Government agency requires limitations to
emissions or pollutantsemissions or pollutants• Discourages development of low-cost Discourages development of low-cost
alternativesalternatives• Economists dislike thisEconomists dislike this
o Environmental Taxes/ Tradable PermitsEnvironmental Taxes/ Tradable Permits• If taxes are set at correct level private If taxes are set at correct level private
marginal cost of pollution = social cost of marginal cost of pollution = social cost of pollutionpollution
• Economists like thisEconomists like this
Critiques of Environmental Critiques of Environmental EconomicsEconomics
o Difficult to assess true costs of Difficult to assess true costs of environmental pollution and abatementenvironmental pollution and abatement• Impacts of pollution on people and nature Impacts of pollution on people and nature
is uncertain is uncertain (not anymore!)(not anymore!)• Ecosystem services have no known value Ecosystem services have no known value
(not quite!)(not quite!)o Utilitarian economics may not be Utilitarian economics may not be
appropriateappropriate• Dynamic changes and time are not Dynamic changes and time are not
consideredconsidered• Based only on monetary value – what is Based only on monetary value – what is
monetary value of clean earth? (A better monetary value of clean earth? (A better question: what is the value of a polluted, question: what is the value of a polluted, damaged Earth?)damaged Earth?)
National Income AccountsNational Income Accounts
o Estimates of National Economic Estimates of National Economic Performance and used in PoliticsPerformance and used in Politics• Gross Domestic Product (GDP)Gross Domestic Product (GDP)• Net Domestic Product (NDP)Net Domestic Product (NDP)
o Environment may be overexploited to Environment may be overexploited to yield a higher GDP in developing yield a higher GDP in developing countries (Tragedy of the Commons)countries (Tragedy of the Commons)
o EPI (Environmental Performance Index)EPI (Environmental Performance Index)• Assesses a country’s commitment to Assesses a country’s commitment to
environmental and resource managementenvironmental and resource management
Case Study- Environmental Problems Case Study- Environmental Problems in Eastern Europein Eastern Europe
o Fall of Communist governments Fall of Communist governments revealed large environmental revealed large environmental destructiondestruction• Soil and water poisonedSoil and water poisoned
• Unidentified leaks in dumping Unidentified leaks in dumping sitessites• Industry with air Industry with air
pollutants causing acid pollutants causing acid rainrain
• Children with chronic Children with chronic asthma, bronchitis, and asthma, bronchitis, and heart problemsheart problems
o Meeting industrial quotas took Meeting industrial quotas took precedence over environmental concernsprecedence over environmental concerns
o Switch from communism to market Switch from communism to market economies- need to improve economies- need to improve environmentenvironment• Will take decades to clean up polluting Will take decades to clean up polluting
economics of communismeconomics of communism
o Success varies by countrySuccess varies by country• Romania- EPI = 90Romania- EPI = 90thth
• Czech Republic- EPI = 4Czech Republic- EPI = 4thth
Case Study- Environmental Problems Case Study- Environmental Problems in Eastern Europein Eastern Europe
Environmental EthicsEnvironmental Ethics
o Field of ethics that considers the moral Field of ethics that considers the moral basis of environmental responsibilitybasis of environmental responsibility
o Western WorldviewWestern Worldview• Human superiority and dominance over Human superiority and dominance over
naturenature
o Deep Ecology WorldviewDeep Ecology Worldview• All species have an equal worth to humansAll species have an equal worth to humans
o Most people’s ethics fall somewhere in Most people’s ethics fall somewhere in between (a gradient of ideas)between (a gradient of ideas)
Societies and SustainabilitySocieties and Sustainability
Ecological systems(“Ecosystems”) and the services
they provide to economic systems are interdependent.
SocietySociety SustainabilitySustainability
For economies, societies and cultures to For economies, societies and cultures to be sustainable, extraction of resources be sustainable, extraction of resources
from ecological systems must not exceed from ecological systems must not exceed the biological populations’ (and the biological populations’ (and
ecological systems’) ability to produce ecological systems’) ability to produce them. Societies and cultures have them. Societies and cultures have
multiple purposes:multiple purposes:
RecreationalRecreational Cultural Cultural AestheticAesthetic EconomicEconomic EducationalEducational
Societies and SustainabilitySocieties and Sustainability
The Bill of RightsThe Bill of Rights(and responsibilities and…)(and responsibilities and…)
A A rightright: A just moral, ethical or legal claim.: A just moral, ethical or legal claim.
A A privilegeprivilege:: A special right or immunity A special right or immunity granted to agranted to a
person or group.person or group.
Source: Webster’s DictionarySource: Webster’s Dictionary
Do responsibilities come with rights?Do responsibilities come with rights?Do we need rights w/respect to the ecological system? Do we need rights w/respect to the ecological system? Why?Why?
In Summary. . . . . . In Summary. . . . . . o Environmental Legislation Effects.Environmental Legislation Effects.
o Environmental Economics Analyses?Environmental Economics Analyses?
o Sustainable Economics?Sustainable Economics?
• Rights and privilegesRights and privileges• Individual and Societal EthicsIndividual and Societal Ethics
