Unit 1 Intro to Enviro Economics Flashcards
(37 cards)
Why would we us economics to think about environmental issues?
- Economic systems utilize natural resources as inputs to the production of goods
- Standard Circular Flow Model - natural resources generally fall under land
- Overexploitation for economic profit can lead to the depletion of renewable resources
- Environmental economics is anthropocentric, ecological economics is ecocentric
- Policies aimed at environmental protection have economic costs and benefits
- Ecological is often macro. Conflicts arise between operation of economic systems and major natural cycles of the planet
What are some of the Pros of of a greater level of economic development? (higher per capita income)
- Higher investment/ improvement in green tech
- More expendable income
- elevated standard of living
What are some of the Cons of a a greater level of economic development? (higher per capita income)
- Increased exploitation of natural resources
- Increased pollution
- Decrease in global biodiversity
- Increase in waste from production and consumption
What major environmental problems are still important issues according to the 2012 UNEP report?
- Decline in productivity due to soil carbon loss
- Nuclear decommissioning
- Aligning governance to the challenges of global sustainability
- Transforming human capabilities for the 21st century: meeting global environmental challenges and moving towards a green economy.
What is Economics?
the study of how people use limited resources to satisfy unlimited wants.
What are Macroeconomics?
Country of Government decisions
What are Microeconomics?
Business or Individual decisions
What type of economics applies mainstream economic principles to environmental and natural resource issues?
Environmental Economics
What type of economics is a field which brings together viewpoints from different academic disciplines and views the economic system as a subset of the broader ecosystem and subject to biophysical laws?
Ecological Economics
What flow model is a diagram that illustrates the ways goods, services capital, and money flows between households and businesses? explain how it works.
Standard Circular Flow Model
- money is paid to firm for service from household
- firm provides good for consumption to household
- household provides labour to firm
- firm provides compensation as income $$$
describe how environment relates to the economy.
- Resources are used to produce goods
- Production of goods creates a product for sale but also waste
- Good is consumed by consumers and also creates waste (some material is recycled)
What are environmental sources and sinks?
Input - solar energy
Output - waste energy
Which view of economics is a combination of Natural resource economics + Environmental economics?
Neoclassical Economics
Which view of economics takes into consideration the interaction between economic systems and ecological systems?
Ecological Economics
Which type of economics is the allocation of scarce resources among people?
Neoclassical Economics
How is value determined through Neoclassical economics?
based on peoples willingness to pay
How are neoclassical values measured?
convert all values to monetary terms if possible
Are market based solutions created for market failures using neoclassical economics?
Yes, in the majority of cases.
Are future generations considered using neoclassical economics?
some are, weight is inferred from market activity.
is value neutrality (objectivity) desired with neoclassical economics?
Yes. it aims to be value neutral (objective)
Does neoclassical economics consider sustainable development?
Only as the well being of HUMANS across time
are there unlimited growth limits with neoclassical economics?
probably not for the foreseeable future
How is value determined through ecological economics?
Economic value may be useful, but also recognizes inherent values such as the ecosystem and resource management.
How is value measured with ecological economics?
Some value, inherent value cant be expressed in monetary terms
