12. Economic growth and the environment Flashcards
(13 cards)
What is the pollution haven hypothesis?
Globalisation causes polluting activities to concentrate in (typically poorer) countries with weak environmental policy
What are the two polluting haven hypotheses?
1) Libearlising trade or foreign investment rules causes polluting industries to relocate to countries with weaker environmental policy
2) Tightening pollution policy in one country causes production to relovate to other countries
What is the evidence like for the pollution haven hypothesis?
Some evidence for it
What is the technique effect?
Can we produce the same product with less pollution
What is the scale effect?
The scale effect refers to the increase in environmental damage simply because more economic activity is happening — i.e., the economy is bigger.
What is the composition effect?
The composition effect refers to changes in what the economy produces — i.e., the mix of industries — and how that mix affects pollution.
What is sustainability according to the UN?
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
What does weak sustainability mean?
Natural capital and manufactured capital are substitutes meaning you can have non-declining utility with environmental degradations
What does strong sustainability mean?
Natural capital and manufactured capital are complements therefore natural environment cannot be degraded to maintain long-run utility
What is economic growth?
An increase in the value of goods and services in an economy
What is decoupling?
GDP per capita growth with decreasing CO2 per capita
What is degrowth?
The idea that the economy cannot keep expanding without bringing substantial harms so we need to become poorer for long-run sustainability
What does degrowth assume?
Assumes either strong sustainability or a higher value on the environment
