Sustainable consumption

Question 1

What is utility maximization?

Answer 1

Concept within economies of humans as informed and narrowly self-interest actors witht he capability to make optimal choices
- peoples consumption choices reveal their preferences

Question 2

What is heuristic?

Answer 2

Method of thought giving quick good enough answers, can be used to manipulate

Question 3

What is Ordinary consumption?

Answer 3

• habitual consumption
• habit information is the process by which a behaviour becomes automatic through regular rep
• subconcious
• many resource intense behaviour are habitual

Question 4

What is positional consumption

Answer 4

• consumption of goods that gain value through a relative position
• Status by limited supply:
• creates external costs for losers in the hierarchy

Question 5

What two approaches are there to emissions accounting?

Answer 5

Production-based (terretorial) accounting

Consumption-based accounting

Question 6

Describe production-based accounting, advantages and disadvantages

Answer 6

• emissions that “leave the pipe” within terretory of country
• method of seeing of the official report to UNFCCC in national emissions inventories
• calculates from fossile fuels usage and process in industry and agriculture

Advantages:

• transparent and proven system
• fits national policy making

Disadvantages:

• risk of carbon leakage
• may create illusion of green growth

Question 7

Describe consumption-based accounting, advantages and disadvantages

Answer 7

• emissions traded to the country of final consumtion of products and services
• includes emissions from domestic final consumption and those caused by the production of imports

Advantages:
- reflects on the actual effect from lifestyle

Disadvantages:

• complex measurement system
• more uncertain estimate of emissions

Question 8

Consumption equation

Answer 8

E_consumption = E_territorial + E_import - E_export

se ex F6