Week #4 Flashcards
(37 cards)
What is a resource?
anything we get from living or non-living environment to meet wants and needs
half of natural capital
what is natural capital?
Resources on the top
Services on the bottom
what are the three aspects of resources?
Renewable, non renewable, perpetual
what is a non-renewable (exhaustive) resource?
- On a geological time span they are renewable, but not on a human timespan
Eg. fossil fuels (coal, oil, natural gas), minerals (inorganic substances) - Most economic growth has been fueled by non-renewable energy
what is a perpetual resource?
Anything used from the sun
Will use energy as long as the sun is shining, renewable
Indirect energy uses sun indirectly
Tides, gravitational presence needs sun, creates tides
Wind is as well, as long as sun is shining, wind will move
what is a potentially renewable resource?
- Renewed fairly rapidly by sun in human time span (direct or indirect)
- Can be depleted if used faster than they are renewed (environmental degradation)
I.e. Used above sustainable yield
E.g. Forest, fresh water, fresh air, fertile soil, grasslands, wild animals
What is neoclassical economics?
Dominating economic system
About the production of goods and services, what humans create as a result of resource exctraction or use
what does it mean that neoclassical economics believes in a linear relationship?
Goods and services; supply and demand
Based on the concept that resources are unlimited
You can only have a linear system as long as the resource end of the system is there or isn’t unlimited
what is another term for neoclassical economics?
Cowboy economy
Compared to when the US was settled and they used all the resources
what is neoclassical economics in relation to the reductionist perspective?
Everything is the sum of it’s parts
If you know all of the individual parts of this duck, then you know how it acts when you put it in its environment
Assumption that 1+1=2
Simplification of natural systems, ignoring complexity evolved billions of years in nature
what does neoclassical economics say about a self-correcting market?
We don’t have to worry about our finite resources disappearing, because we have a self-correcting market
When something becomes so expensive ppl can’t afford it so they go to another resource and the cost of the resource goes down
Firewood, coal, natural gas
Idea that market will always drive itself
EQUALIBRIUM
what population trend has occured under neoclassical economics?
logistic growth
what is k in logistic growth
carrying capacity
Maximum population size that specific environment can handle (“carry”
explain logistic growth
k is Dependent on how resources are used
Decrease resource quality/quantity reduces K
what is exponential growth in relation to logistic growth?
Can only continue to infinity if all resources are unlimited
A population can only grow exponentially under those conditions
But under conditions of resource limitation, those limitations are going to limit the population (k)
But at some point of that exponential growth phase, it will be limited by resources, so it will turn into S curve
what happens if there is an overshoot of the carrying capacity?
We don’t just sort of level out
competition of recourses and environmental degradation, there is a population die off
How does neoclassical economics view economic growth?
Economic growth viewed as good for different reasons
Developing vs developed countries view differs
GDP = market value of all goods and services produced within a nations borders/yr
explain costs and benefits of growth in neoclassical economics?
Based on assumption that growth is good
But what is that growth based on?
We use our resources, so in a resource based economy, we will continue to consume those resources
Result in significant environmental degradation
what is environmental economics?
Introduction of concept of “sustainable growth”
From “cowboy economy” to “circular economy”
what is the circular economy in environmental economics based on?
First law of thermodynamics
Neither matter nor energy can be created or destroyed; it can only be changed from one form to another
We lower resources, then we recycle and reuse
We still have waste but some more input into the system
what similarities are there between neoclassical economics and environmental economics?
Reductionist perspective like neoclassical economics
Economy and humans are still central; metrics are quantitative (GDP = humans)
what are the 3 aspects environmental economics focuses on?
- Minimizing waste; return “waste” to economy by recycling
- Reduce degradation (eg. resource depletion and pollution)
- Reduce negative environmental impact
what does environmental economics aim to do in relation to efficiency?
Increase resource efficiency at lowest cost to economy
what are the 3 aspects of increasing resource efficeny at a low cost?
- Commodify the environment
- Define optimal level of environmental protection
- Create policies the help achieve #2
