Unit 2: Problem of Sustainability: Ch.9

Question 1

What is Methodological Pluralism

Answer 1

multiple insights guard against mistaken action based on one perspective

Question 2

What is Natural Capital

Answer 2

Available Endowment of Land and Resources

Question 3

What is Net Investment

Answer 3

process of adding to productive capital over time

Question 4

What is Net Divestment

Answer 4

process of subtracting from
if productive capital decreases: economic declineW

Question 5

What is Capital Depreciation

Answer 5

Deduction in national income accounting for the wearing out of capital overtime

Question 6

What is NATURAL Capital Depreciation

Answer 6

No accounting made for loss of natural capital-only counts as income
Ex. forest vs timber

Question 7

Techniques for Natural Capital Accounting

Answer 7

-physical accounting
-sustainable yield (if economic equilibrium > sustainable yield =resource threatened)
-absorptive capacity of the environment

Question 8

Substituability

Answer 8

-Standard economics assumes Natural Capital can be substituted by Human Capital
ex. fertilizer

Question 9

Complementarity

Answer 9

Manufactured + Natural Capital needed for effective production

Question 10

Natural Capital Sustainability

Answer 10

aim to conserve to limit depletion and degradation and invest in renewal

Question 11

Optimal Macroeconomic Scale

Answer 11

Level where further growth leads to lower well being or resource degradation

Question 12

What are source functions

Answer 12

Extraction of energy and resources

Question 13

What are SINK functions

Answer 13

disposal of wastes and waste energy

Question 14

What is THROUGHPUT

Answer 14

total use of energy and materials as both inputs and outputs of a process

Question 15

Open System

Answer 15

Economic System is Open
Exchanges energy and resources with global ecosystem

Question 16

Closed System

Answer 16

Global Ecosystem is Closed

Question 17

What is Empty World Economics

Answer 17

Economic system is small
Exploit natural resources to increase human made capital
Increased consumption
Economic activity constrained by limited quantities of human-made capital

Question 18

What is Full World Economics

Answer 18

Economic system presses against ecosystem limits
Environmental degradation begins to undermine economic activity

Question 19

What is Dematerializatin

Answer 19

Achieve economic goal with decrease use of physical materials

Question 20

What is Decoupling

Answer 20

Break correlation b/w economic activity and increase in environmental impacts

Question 21

How do we know if Economics is reaching the limits of the Ecosystem

Answer 21

Look at the environmental thresholds being reached
PLANETARY BOUNDARIES
Exceeded Boundaries
-Nitrogen/Phosphorous
-Climate
-Land Systems Change
-Biodiversity

Question 22

What aspects are used to measure relationship b/w economic and ecological systems

Answer 22

-Net Primary Product of Photosynthesis: biomass energy
-Carrying Capacity
-Ecological Footprint

Question 23

What is Strong Sustainability

Answer 23

Limited substitues b/w natural and human made capital
Government intervention extensive

Question 24

What is Weak Sustainability

Answer 24

Natural and Human made capital can be substituted

Question 25

When is Government intervention needed in Weak Sustainability

Answer 25

-private owners fail to consider full ecological value of natural capital -property rights of resources poorly defined -private owners do not consider long term effects -common property involved -irreplaceable resources at issue

Question 26

What does a high discount rate mean

Answer 26

Greater incentive to exploit resources in the present

Question 27

Hotelling's rule

Answer 27

Resource's net price must rise at rate at least equal to interest rate before they will conserve that resource for the future

Question 28

For private owners to practice sustainability

Answer 28

Annual yield must be at least equal to market rate of interest

Question 29

Ecological Complexity

Answer 29

many elements in an ecosystem-human actions are unpredictable

Question 30

What is Irreversibility

Answer 30

Human Impacts that cannot be reversed

Question 31

Precautionary Principle

Answer 31

Minimum interference in natural systems as we cannot predict long term effects

Question 32

First Law of Thermodynamics

Answer 32

Matter & Energy cannot be created or destroyed

Question 33

Second Law of Thermodynamics

Answer 33

Energy degraded from available to unavailable

Question 34

What is Entropy

Answer 34

Measure of UNAVAILABLE energy in a system Entropy increases as natural processes proceed High Entropy means less available energy Coal 1st has low entropy-once burned it has high entropy

Question 35

What is Embodied Energy

Answer 35

Total energy required to produce good or service

Question 36

Economic Processes of Energy

Answer 36

Low Entropy: Continual process of useable energy and resources High Entropy: Continual stream of waste energy and products

Question 37

What governs mechanisms of production

Answer 37

Input & Output flows of resources and energy Labour and Capital are main productive factors

Question 38

What is Solar Flux

Answer 38

Continual flow of solar energy to earth

Question 39

Entropy Laws

Answer 39

-limited stocks of low entropy resources -limited capacity of soils/biosystems to capture solar energy for production -limited capacity of ecosystem to absorb high entropy waste

Question 40

Entropy and Industry

Answer 40

Increasing amount of energy needed to achieve same output

Question 41

Different ways of payments for Ecosystem Services (PES)

Answer 41

-Monetary -Free trees to convert land

Question 42

What is PES

Answer 42

Payments for Ecosystem Services: incentive for resource owners to maintain ecosystem services

Question 43

How can PES be successful

Answer 43

Conditionality: system must be verified Additionality: benefits would NOT be obtained without payments Leakage: beneficial actions not offset by other changes Permanence: long term

Question 44

What are Ecological Economics MACRO-LEVEL changes

Answer 44

-Energy: renewable -Agriculture: organic/regenerative -Population -Nonrenewables: conserve/reduce -Renewables: conserve, prevent overuse