Economics, Environment, And Sustainability

5/26/2018 Economics, Environment, And Sustainability

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When it is asked how much will it

cost to protect the environment,one more question should be

asked: how much will it cost our

civilization if we do not ?

Gaylord Nelson

ECONOMICS,

ENVIRONMENT, AND

SUSTAINABILITY


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FOUR SCIENTIFIC PRINCIPLES OF

SUSTAINABILITY


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ECONOMIC RESOURCES

Economic system

Social institution through which goods and

services are produced, distributed, and

consumed to satisfy peoples wants in the

most efficient possible way

ECONOMIC RESOURCESNaturalResources and services

HumanPhysical and mental talents that provide labor,

innovation, culture, and organization

Cultural skills people pick up from their families and

friends the ability to be trustworthy (moral capital)

Getting people to work together to implement sharedvisions of a better world (social capital)

ManufacturedMachinery, equipment, factories (made from natural

resources with the help of human resources)


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ECOLOGICAL PRICING

Assigning monetary values to resources not traded

in the marketplace

Existence value

Aesthetic value

Option value


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ECOLOGICAL PRICING

Mitigation cost

Willingness to pay

ESTIMATING THE FUTURE VALUE OF ARESOURCE

Economics and ethics

Discount rate


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HIDDEN HARMFUL COSTS

Market price does not include most of the

environmental, health, and other harmful costs

associated with its production and use

Internal/direct cost

External/indirect cost

OPTIMUM RESOURCE USE


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OPTIMUM POLLUTION CONTROL

Demand for

cleanup by users

ECONOMIC TOOLS FOR IMPROVINGENVIRONMENTAL QUALITY

Full-cost pricing

Having prices that tell the ecological truth

Including external costs in market prices informs

consumers about the harmful impacts of their

purchases on the earths life-support systems and

on human health

Why is it not used more widely?

Eco-labeling


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ECONOMIC TOOLS FOR IMPROVING

ENVIRONMENTAL QUALITY

Subsidy shifting

Green taxes

Shifting taxes from wages and profits to

pollution and waste

Green economics

Selling services instead of things

Environmental laws and regulations

REDUCING POVERTY TO IMPROVEENVIRONMENTAL QUALITY AND

WELL BEING

Poverty defined

Forgive international debts

Increase international aid

Microloans to the poor

solidarity groups


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REDUCING POVERTY TO IMPROVE

ENVIRONMENTAL QUALITY AND

WELL BEING

Achieving the Millennium Development Goals

Data from UN, WHO, US Dept. of

Commerce, US Office of Mngt. and Budget;

Figure adapted from G.T. Miller, Jr. Living in

the Environment, 15thEd. , 2007

TOTAL EARTH

RESTORATION AND

SOCIAL BUDGET = USD 245 B


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MAKING THE TRANSITION TO MORE

ENVIRONMENTALLY SUSTAINABLE

ECONOMIES

New industries and new

jobsAquaculture

Biodiversity protection

Biofuels

Climate change research

Conservation biology

Eco-industrial design

Eco-tourism

management

Energy efficient product

design

Envtlchem.; design;

economics; educ.; engg.;

health; law; nanotech.;

Fuel cell tech

GIS

Geothermal geologist

Hydrogen energy

Marine science

Pollution prevention

Solar cell tech Sustainable forestry; agrl

Water conservation

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Economics, Environment, And Sustainability