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What is Sustainability?

• Sustainability is about long-term survival.
• Dinosaur extinction is an example of a lack of sustainability, brought on by an asteroid impact.
• The 160 km asteroid Baptistina shattered 160 million years ago.
• This event led to the Chicxulub crater formation 65 million years ago.
• Asteroid Apophis, identified in 2004, poses a future risk and is expected to pass close in 2029.

Theodore Roosevelt on Sustainability (1907)

• Natural resources should be conserved and treated as assets.
• Those assets should be handed over to future generations in an improved state.

Visions of the Future

• Historically, economic growth was slow and inconsistent.
• The Industrial Revolution led to a rapid acceleration.
• Post-WWII growth peaked at 3% per year but declined.
• In the 1970s, growth dropped to 2% per year and then fell below 1% per year in the 2000s.
• Sustained growth relies on innovation, not just on more workers or investment.

Economic Sustainability

• Sustainability means maintaining a given standard of living (GDP per capita) over time according to Robert Solow's definition.
• The definition assumes that physical and human capital can compensate for natural capital loss.
• A criticism is whether everything can be truly replaced.
• Norway uses oil profits for a pension fund as an example of economic sustainability.
• Nauru illustrates the opposite where phosphate mining destroyed 80% of the island, creating economic collapse.

Problems with GDP as a Measure of Well-being

• GDP measures market-based economic activity, but this often is mistakenly used as a measure of well-being.
• GDP fails to include non-market production like housework.
• GDP ignores the costs of economic growth and does not account for depreciation of capital.
• GDP represents the "average" person and overlooks leisure time, the black market economy, work at home, inequality, public goods, and externalities.
• The U.S. spends more per capita on healthcare, but outcomes are worse than in Europe despite higher spending.

Joseph Stiglitz on GDP & Inequality

• GDP has risen almost every year since 1991, but real wages have declined for many Americans and the benefits of economic growth mostly benefit top earners.

Alternative Sustainability Metrics

• The Sustainability Dashboard needs multiple indicators to track economic, social, and environmental factors.
• The Human Development Index (HDI) measures health, education, and income and implies controversial value judgments.
• For example, a year of life expectancy in the U.S. is valued 20x more than in India.
• The Inclusive Wealth Index (IWI) measures produced capital, human capital, and natural capital.
• Economic growth often masks declining wealth.

Happiness & Sustainability

• Happiness rankings are based on the Gallup World Poll (2021-2022).
• Factors include social support, life expectancy, economic freedom, and perceptions of corruption.
• There is a correlation between higher democracy levels and happiness.

Final Takeaways

• GDP is insufficient to measure well-being.
• Sustainability necessitates multiple indicators relating to the economic, environmental, and social aspects.
• Economic policies must balance growth with long-term well-being.
• Innovation, equity, and environmental responsibility are key to sustainable progress.

The Capitalist Revolution

• Historically, most nations were poor but rapid, sustained economic growth began around 1700.
• The key question is what caused this to happen?
• David Maddison's research on historical GDP growth and median vs. mean income comparisons are key data sources.

The Global Economy: How Did We Get Here?

• Key drivers of economic change are economic inequality and divergence.
• The technological revolution, economic growth, the role of capitalism in economic development, and the role of government in shaping capitalism are also key drivers.
• Past decisions influence present choices, this is known as Path Dependence
• Railway gauge standardization of 143.5 cm is an example of economic path dependence.

Sunken Assets in Fossil Fuels

• A 2015 study in Nature showed 80% of fossil fuel reserves must remain unextracted to prevent runaway climate change.
• The fossil fuel industry is valued at $20 trillion.
• Southern U.S. slave economy in 1860 is an example of a sunken asset/ investment.
• Slaves accounted for ~16% of total household wealth, which is about $10 trillion in today's terms.
• Abolishing slavery was associated with a massive wealth destruction.
• Transitioning from fossil fuels poses economic and political challenges of similar magnitude.

Inequality

• Income disparities between countries are extreme.
• Singapore’s richest 10% earn $67,436/year, poorest earn $3,652/year.
• Liberia's richest earn $994/year, poorest earn $17/year.
• Top 1% control 50% of global wealth as of 2017.
• Thomas Piketty says that inequality is a feature of capitalism so state intervention is needed to be controlled.

Income Growth in the U.S. Since 1980

• Growth has been uneven, where top earners gained far more compared to the middle and lower classes.
• Wealth gaps persist along racial lines, where white families are typically wealthier.

Within and Between-Country Inequality

• 1,000 years ago, incomes were relatively equal worldwide.
• Now, modern inequality is much larger between nations.
• The "hockey-stick" growth pattern shows how some countries took off economically while others stagnated.

Why Inequality Matters for Natural Resources

• Mineral wealth is concentrated.
• Low-income countries struggle with conservation, where poverty often leads to resource exploitation.
• Wealthy individuals may also not prioritize sustainability and social unrest can damage environmental efforts.
• The Marikana mine strike (South Africa, 2012), miners shot while protesting for higher wages, is an example.

Measuring Inequality

• The Lorenz Curve visualizes income inequality and the Gini Coefficient ranges from 0 (perfect equality) to 1 (maximum inequality).
• Taking reference from a case study, pirate ships had more equal pay structures than the British Navy.
• Redistributive government policies (taxes, transfers) and land reform, such as Operation Barga (West Bengal, India), address Inequality.
• The reform increased sharecropper rights, reduced poverty, and improved productivity.

"Hockey-Stick" Growth

• Economic growth was slow until 1700, then surged into a "hockey-stick" pattern.
• The growth take-off occurred at different times in different countries.
• Britain saw its first sustained growth (~1650).
• Japan saw growth around 1870, and China & India saw it in the late 20th century.

The Technological Revolution

• Technology reduces resource use per output unit.
• Light production efficiency is 500,000x greater today than in ancient times.
• The 18th century's Industrial Revolution in Britain shifted from an agrarian to industrial economy.
• Global climate change and local pollution are key issues regarding the Consequences of Economic Growth
• Technology may offer solutions by improving efficiency.

Capitalism

• Capitalism has key institutions like private property which is the Ownership of capital and resources.
• Key institutions include markets, voluntary exchange of goods/services, and firms, business entities that use inputs to produce outputs for profit.
• Technology advancement and specialization drive growth in capitalism.
• Firms compete by innovating in an expanding market which allows workers to focus on specific tasks, increasing efficiency.
• Trade enables specialization, even when one country is less efficient overall.

Did Capitalism Cause "Hockey-Stick" Growth?

• In a natural experiment, post-WWII West Germany (capitalist) grew much faster than East Germany (centrally planned economy).
• Capitalism coexists with different political systems like Democracy and Authoritarianism.
• Authoritarianism means less political freedom, but still market-based economies.
• Government role varies regarding infrastructure, education, and regulations.

Economics: Understanding Human Behavior

• The key economic questions relate to acquiring necessities, interacting as buyers/ workers/ citizens, impacting the environment, and how these all change over time.
• Economics studies these interactions and the economy exists within society, which exists within the biosphere.

Summary & Key Takeaways

• Income inequality has increased over time.
• The "hockey-stick" growth in GDP changed global living standards.
• Technological progress and capitalism were key factors and capitalism = private property + markets + firms.
• Government & political systems shape capitalist outcomes.
• Sustainability vs. economic growth, the impact of inequality on political and economic stability, and the role of technological innovation in solving resource constraints are key challenges for the future.

Technological Change, Population, and Growth

• Historically, most societies remained poor for thousands of years, but rapid, sustained economic growth only began 200 years ago.
• Two key questions are why did the technological revolution start and why didn't it start earlier?
• Economic models help explain the growth in real wages & population in the last two centuries and economic stagnation before industrialization.

Economic Models

• Economies involve millions of interactions, so models help simplify and understand them.
• Good models focus on essential features while ignoring unnecessary details.

Characteristics of a Good Model

• Clarity helps to understand important concepts and predictive power accurately aligns with real-world evidence.
• Important features include improving communication to identifies points of agreement/disagreement, and usefulness to improves economic decision-making.
• “Ceteris Paribus” means "holding other factors constant" for analysis and incentives are the rewards or punishments influencing choices.
• Relative prices help to compare economic alternatives and economic rent is the extra benefit from a choice relative to the next best alternative.

Explaining Growth

• Factors contributing to Britain's early industrialization include high labor costs and cheap energy (coal).
• Scientific revolution & Enlightenment ideas, political stability and institutions fostering innovation, cultural traits emphasizing hard work & savings, and colonial resources fueling industrial expansion are all key factors.
• Technology uses inputs to produce an output.
• Firms could use different combinations of labor & coal to produce 100 meters of cloth.
• Labor-intensive vs. energy-intensive technologies affect the process of choosing the most efficient way the produce and item.
• Rational firms adopt the least-cost technology based on relative prices to ensure maximal income.

Innovation and Profit Maximization

• Firms minimize costs by choosing optimal technologies and relative prices matter.
• Before the Industrial Revolution, labor was cheap, so firms used labor-intensive methods.
• As wages increased, firms had incentives to adopt capital-intensive methods (machines).
• Innovation Rent = Profit gained from adopting a new technology and entrepreneurs adopt new technologies to disrupt traditional industries, also known as creative desctruction.

Schumpeter's Theory (Joseph Schumpeter)

• Economic growth is an evolutionary process, and new sectors replace old ones.
• Workers and firms must adapt, or they risk obsolescence.
• Luddite Movement: in the early 1800s, skilled artisans resisted mechanization.
• Some people see fear about Al, automation, and genetic engineering as today's parallels.

Diverging Economic Fortunes

• In the "Case Study: North vs. South Korea" GDP per capita was similar in both Koreas from 1950-1970s.
• South Korea implemented market reforms and invested in education & infrastructure, and now has a high-income economy similar to Portugal & Spain
• North Korea maintained a centrally planned economy and living standards are now 10x lower than in South Korea and the average life expectancy is 10 years shorter.

Explaining Stagnation

• A different model is needed to explain economic stagnation before the 18th century.
• Population grows exponentially, but food production grows arithmetically and must be accounted fot in a successful economic model.
• Exponential Doubling (Jeff Bezos Thought Experiment): 1 penny doubled monthly becomes → $176 billion in 44 months.
• This illustrates how population growth can rapidly outstrip resources, explained but what is called the law of diminishing returns

The Law of Diminishing Returns

• Adding more workers to fixed land reduces productivity per worker because more workers = less output per person = Lower wages.
• Thomas Malthus predicted that population growth cancels out economic gains in 1798.
• Key ideas include higher wages lead to more births and larger populations, more workers lead to lower wages, equilibrium forces wages back to subsistence level (bare survival), and long-run stagnation causes population and income to remain constant.

Food vs. Population Growth

• Population growth is exponential and self-reinforcing.
• Food production is arithmetic (each increase adds a fixed amount).
• This can result in population outstripping food unless checked by disease, war, or famine.
• Evidence from England between 1280 to 1600 supports the Malthusian model, but industrialization broke the cycle.

Escaping the Malthusian Trap

• Three conditions needed for stagnation are diminishing returns to labor, population growth responding to higher wages, and no technological improvements.
• Industrialization broke the third condition, as permanent technological progress led to continuous economic growth.

Summary & Key Takeaways

• Economic models help explain both growth and stagnation.
• The Industrial Revolution was driven by technology and incentives, as high wages and cheap energy incentivize mechanization.
• Creative destruction forces firms to adapt or fail and Malthusian stagnation persisted for centuries until technological progress accelerated.
• One question is whether all technological advances are good.
• Concerns about Al, automation, and ethics, and how to ensure technology benefits society as a whole are relevant.

Producer Behavior

• Economic activity involves both consumption and production which relates inputs into outputs.
• Inputs are labor, capital equipment, natural resources, and intermediate goods and outputs are finished products/ services, or intermediate goods.

Supply Chains

• 2021 saw Fragile Supply Chains and challenges in restarting the economy post-pandemic where Economic recovery is not a simple process.
• Businesses had to reopen, laid-off workers had to find new jobs, and manufacturers had to restart production lines.
• A record low inventory-to-sales ratios occurred in March 2021
• Shipping container shortages led to skyrocketing shipping rates and congestion at international ports impacted railroads and trucking.
• Automobile sales suffered due to supply chain disruptions.

Market Fundamentals

• A market an institution or mechanism for voluntary exchange of goods & services with characteristics of competitive markets.
• There are many buyers & sellers with homogeneous products as well as free entry & exit.
• The term “banyan” (from banyan trees in India) originally meant "market."

Supply and Producer Behavior

• Supply is the amount of a good sellers are willing and able to sell at various prices.
• The law of supply states that price rises when quantity supplied rises and price falls when quantity supplied falls.
• A supply schedule is Table showing price vs. quantity supplied and the supply curve is graphical representation of supply behavior.
• Changes in price lead to changes in quantity supplied.

Factors Affecting Supply

1. Resource prices
2. Technology advancements
3. Future expectations
4. Number of sellers in the market

Shifts in Supply

• Decrease in Supply means the supply curve shifts to the left.
• Increase in Supply means the supply curve shifts to the right.

Market Interactions: Supply and Demand

• Market equilibrium is the point where supply = demand (Q* at price P*).
• Any shifts in supply or demand affect market equilibrium.
• Surplus occurs when there is excess supply at high prices and shortage occurs when there is excess demand at low prices.

Shifts in Demand & Supply

• Decrease in Demand leads to a lower equilibrium price & quantity.
• Increase in Demand leads to a higher equilibrium price & quantity.
• Decrease in Supply leads to a higher price and lower quantity.
• Increase in Supply leads to a lower price and higher quantity.
• Market entry occurs when firms see economic profits and supply increases with market entry, shifting the supply curve. Market exit occurs if costs are too high, shifting supply left.

The Role of Taxes

• Taxes on suppliers or consumers shift supply demand curves and have various economic impacts.
• Consumer and producer surplus decreases as a general effect of taxation.
• Government revenue increases due to taxation, this is called deadweight loss (efficiency loss)
• More elastic demand dictates that producers bear more of the tax and more elastic supply dictates that consumers bear more of a tax.
• Denmark's Butter Tax demonstrates an example where with 15-20% reduction butter consumption, it was eventually repealed due to administrative burden.

Consumer vs. Producer Surplus

• Uber uses surge pricing to estimate willingness to pay with their services.
• In 2015 UberX generated $6.8 billion in the U.S. with every $1 spent by consumers generating $1.60 of consumer surplus. These findings were based on research from NBER (2016).
• Producer surplus has a graphical representation of consumer & producer surplus and is the Difference between price received and cost of production.

Elasticity of Supply and Demand

• Price Elasticity of Demand measures how much quantity demanded changes with price.
• The measuring formula is % Change in Quantity Demanded ÷ % Change in Price.
• Factors affecting elasticity include Availability of substitutes, Time to respond to price changes, Share of income spent on the good and Temporary vs. permanent price changes.
• These measurements all affect gasoline prices.
• When the price increased 55% (2004-2005) the consumption fell only 3.5% and when the price increased 53% (1998-2004) the consumption actually rose by 10%. -Economic growth and lower car prices offset price increases.

Supply and Demand in Real Markets

• Gasoline price elasticity is approximately -0.7 which means a 10% increase in price leads to a 7% decrease in demand.
• A 4% reduction comes from fuel-efficient cars and a 3% reduction comes from less driving.

Hula Hoop Demand in 1958

• Wham-O marketed the Hula Hoop and their sales skyrocketed to 100M in one year.
• The 1994 film "The Hudsucker Proxy" depicted market dynamics.

Thoughts: The Importance of Producer Behavior

• Changing incentives affect market outcomes.
• Understanding producer behavior helps address scarcity and economic choices impact environmental quality.
• Better economic & environmental outcomes require behavioral adjustments.

Test Your Knowledge

• Example questions include finding the equilibrium price and quantity and calculating the consumer and producer surplus.
• Producers play a crucial role in markets while Understanding supply, demand, taxes, and elasticities helps explain real-world economic behaviors.
• Consumer and producer choices shape the economy & the environment.

If Growth Sustainable?

• A key question is whether exponential growth is sustainable?
• Greta Thunberg's Speech (UN, 2019) criticizes focus on economic growth over environmental sustainability and highlights suffering, ecosystem collapse, and mass extinction concerns.

Themes Explored

1. Market economies and sustainability.
2. Sustainable growth considerations
   • Overpopulation?
   • Do richer nations pollute less?
3. Economic perspectives on sustainability.

Market Economies and Sustainability

• Markets are self-Correcting Systems with Adam Smith's division of labor.
• Resources are allocated based on value and scarcity as well as prices reflecting opportunity costs to manage resource use.
• The Simon-Ehrlich Wager debates on whether natural resource scarcity is reflected in market prices and make comparisons of metal prices over time to to determine sustainability.

Water Scarcity & Sustainability Challenges

• Pricing water appropriately means that climate change affects food security and social stability. Hydropower projects (Turkey, China) can also reduce water availability for neighboring nations.
• Historical perspectives involve the effects of overpopulation.
• Thomas Malthus predicted scarcity due to land limitations and J.S. Mill argued that technological advancements could counter scarcity.

Technological Influence

• The Industrial Revolution presents questions as to whether is a historical anomaly or the new norm?
• Norman Borlaug who advocated for Green Revolution technologies that prevent starvation.

Demographic Transition Theory

• This theory presents a correlation between economic development and declining birth rates using a statistical analysis of how income affects fertility.
• For poor nations, there can be higher birth rates while regression analysis shows income elasticity of fertility at -0.31.

Impact of Age Structure on GDP

• A higher working-age population correlates with higher GDP while Youthful populations negatively impact economic productivity.

Pollution and Economic Growth

• Most Polluted Cities (2020) dictates that fifteen of the twenty most polluted cities are in India.
• Pollution leads to seven million premature annual deaths.
• Larger cities are not necessarily dirtier, and wealthier nations tend to have cleaner environments

Environmental Kuznets Curve

• Economic growth initially increases pollution.
• After a certain income threshold, pollution decreases due to better regulations and cleaner technologies while growth alone does not guarantee environmental protection.
• Poverty can be detrimental to sustainability.

Case Study: Leaded Gasoline

• Lead poisoning risks have been known since since Roman times with leaded gasoline phased out in the U.S. in the 1970s,
• This phasing out of leaded gasoline has been linked to crime rate reduction in the 1990s
• Reducing lead exposure had benefits twenty times greater than the costs.

Economic Systems and Sustainability

• Kenneth Boulding's “Spaceship Earth” concept sees the economy as a closed system with finite resources.
• This shows a shift from "cowboy economy" (unlimited expansion) to "spaceship economy" (sustainable resource use).
• Thecircular Economy Model accounts for resource flows, where the second law of thermodynamics (entropy) imposes limits on growth.
• Literacy rate and fertility significantly impact GDP and income inequality (Gini coefficient) has no significant effect in the model. These findings help to demonstrate Income Inequality, Literacy, and Economic Growth

Labor Market & Economic Growth

• According to a January 2023 Jobs Report there was rose by 517,000 with Unemployment at 5.7 million, and a Labor force participation rate at 62.4%.
• Demographic Influences on Employment include baby boomers, women's workforce participation, and COVID-19's long-term effects.

Themes For sustainability of Growth

• Population control and technological advancement.
• Economic incentives for sustainability
• Systemic thinking in managing resources.

Economic Growth & Environmental Protection

• Richer nations can afford environmental protection, but growth alone is insufficient.
• Political interventions are necessary to align markets with sustainability goals.

Consumer Behavior

• Consumer Behavior is where the Quote: "Without theory facts are silent.” – Friedrich August von Hayek
• It takes note of overview of consumer behavior and its relevance, Impact of economic conditions on consumer decision-making,and the Importance of understanding consumer choices for market and policy decisions.

Inflation

• Important information to note about economic consumer is the January 2023 Inflation Report
• The Consumer Price Index (CPI) increased by 6.4% compared to the previous year, slowing from 6.5% in December, down from 9% in Summer 2022.
• Important indexes about consumer consumption, the PCE Price Index (Personal Consumption Expenditures) vs. CPI: P
• The PCE includes all consumption expenses (e.g., healthcare costs covered by employers, Medicare, and Medicaid) and reflects only direct out-of-pocket consumer costs.
• Important to note is the weighting of consumer sentiment: Healthcare (22% in PCE, 9% in CPI), Housing (42% in CPI, 23% in PCE).

Key Economic Factors In Consumer Behavrior

• This includes the Definition and Importance of Consumer Behavior and Consumer Sentiment and Economic Indicators.
• A key "Case Study: Carbon Border Tax" to note
• Consider also the Demand Theory and Market Behavior with key points of knowledge and Fossil Fuel Subsidies and Market Inefficiencies
• This includes the psychology, sociology, anthropology, marketing, demography, and economics plus Group influence: Family, friends, reference groups who take into affect Emotions' role in purchasing decisions.

Consumer Sentiment Reports:

• Are surveyed at the University of Michigan include consumer sentiments such as
• December 2022 with an index score of: 59.7 the average and up slightly from November (56.8%).
• But still 15% below a year ago, but improving due to inflation.

Historical Perspective:

• Consumer Sentiment Index trends from 2012-2022 and 1952-2022.

Focus Of Carbon Usage For Emissions

• An important note is the focus should be on producers rather than consumers.
• Look at Net emissions exporters in countries like : China, India, Russia, Saudi Arabia.
• Look at Net emissions importers in countries like : U.S., Europe, Japan. Australia shifted from net exporter to net importer in 2011 because of trade with China.

Consumption As A Way to determine Emissions

• Look at Western Europe: 20-50% of consumption emissions are imported, the U.S.: 11% imported emissions,the China: 23% of emissions are exported.
• There is a suggestion to focus allocation of emissions responsibility to consumers.

Economic Principles in Consumer Behavior

• Consider the scarcity of resources requires choices and that there limited resources that must be allocated efficiently.
• The value of the next-best alternative foregone. is what drives decision-making involving comparing trade-offs.
• The marginal cost vs. marginal benefit and consideration for whether the gain is worth the expenditure of either time, or money.
• Trade allows for specialization and better resource allocation so that Voluantry trade benefits all parties

Key Principles of Economics

• Markets help allocate resources efficiently and that Market prices reflect scarcity and value.
• The amount of a good consumers willing and able to buy at various prices drives Demand.
• The Law of Demand: Higher price leads to lowering demand with the inverse being true.

Demand Influencers

• Income levels relating to consumer choices, prices of goods, and Consumer preferences and trends:
• These are all related to what good are related to one another.
• Graphical Representations of demand include -Demand Schedule where shows price vs. quantity demanded. Demand Curve with: Graphical representation of the relationship. Factors shifting demand curve affect: Changes and variations in price and market conditions for a variety of reasons.

Fossil Fuel Subsidies: An Economic Inefficiency

• The current system mostly benefit the wealthy.
• Countries face budget deficits and inefficiencies because of big producers.
• High subsidies and ineffencies are the current situation.

Distribution Of Subsidies

• Of these, there is about with Only are 8% of subsidies go to the poorest 20% while 43% go to the richest 20%.
• Subsidies have several implications for a countries budget according to the Economic and Environmental Costs of Subsidies
• There is a lot of money moving into the market as half of daily decisions involve consumption and and market movements.

Consumer Decision-Making Factors And Behaviors

• The impact of consumer spending and the impact of market movements
• Key factors to explore include production decisions and theri effect on markets

Markets, Efficiency & Public Policy

• An intro focuses on market failures with both Overview and Role of government and policy and how it effects in addressing inefficiencies.
• Definition for many factors of product pricing: Competitive equilibrium is typically Pareto efficient:

Sources

• In Price Inefficiency Missing or incomplete property rights that would normally create stability, externalities overrule the effect of individual entities. Asymetrical information is a important source that needs to be eliminated, and that contracts can be properly written is important.
• Examples of Market Failure
• Health and Environment*
• *Pollution levels, Flu and its affect on individual vaccination decissions
• Examples from the Caribbean and the use of pesticides that affect both the residents and the seafood population of the area
• Antibiotic resistance and Over-Use

Market stability

• Why Do Markets Fail? :
• Conditions Under Which A mARKET FAILES 1 Effective governance policies with set standards must exist, well defined, and that there no difficulties in enforcing the rules on products
• Externalitites
• Major effects cause this by : Major Cause Effect
• *Uncompisated spillover effects from economic activities,
• Examples
• Water and Pollution: Industrial Waste Affects Fisheries
• Air Quality: Air pollution such affecting health and its overall state.
• What are the Solutions
• Subsides and taxes to have make a market more efficient

Solutions To Correct Problems

• One set of problems is Private Bargaining:
• Issues involving challenges: Involves Coordination and collective action or problems with Difficulty when setting and determining compensation
• There can also be enforcement issues.
• There needs to be* Government Policies:
• Involve laws: Involving harmful pollution amounts.
• Involve Taxation: Alinging all possible price points with total social cost to be factored

1. Issues Involving Pollutants In The Community
2. The Market Doesn't Act Well

• • There there is a *lack of proper structure in market and it is "underpriced" or that There's no real true set value
• • There is no Economic Solution
• Involving Pollution and taxes to: Incentivise and encourage all consumers and producers to account for cost.
• Carbon Pricing: To set a toll when greenhouse gasses are used.
• GOOD and Commons Pool Resources*.
• A key benefit from this product, with no restriction to user benefit regardless to the benefit.

Traits of a Good Market

• • Has a Non exclidable / Non Rival traits in a market.
• EXAMPLE: Coast Guard services.
• Freerider Probelm: All citizens can obtain the benefits without payment, without a subscription.
• Because the market is a great benfits to both, governments are willing in providing funds to the markets such that that it flourishes because of the benefits provided to all consumers, which is key in having high efficiency.
• Is OverFishing Due To Water Exploitation*
• This involves 1. The traits of the Commons are Non excludable and Rivolrous. 2. Meaning water and fish, are an entity to be taxed and regulated and that it requires access fees.

Efficiency With Proper Governance Models Involved

• What Is Efficiency: the efficiency of processes.
• What happens when no one benefits.
• Case Study: Farming in California, shows that cities cannot fully flourish due to water concerns.

1. Things That Is A Concerns
2. Ethical Points Of Interest: and when the price tag is not in compliance, fairness is a concern.

• There needs to be social norm and effective governing parties for markets to be able to function at efficiency.

Managing Common Resources

• There needs to be a true defitinon and challenge when it comes to the tragedies and resources challanges in common.
• Real Cases
• When it comes to lobstering in Miane . * Community gardens in Mozambique and in Alban .
• Deforiestation in different markets world wide
• Tragedy or The Commons

Modern Solutions to help avoid problems in the market

• Garrett Hadin

• To Overus and manage source controls of resources

• There should be a way to help provide benefit for commucity when the cost are shared amongst all

• How to improve the situation

  1. Provide good sources for all. 2. Proper Market controls so that the consumers and vendors are protected

• Thoughts* Aristole Said: "The Market that the people are least concerned about gets the most care"

• Examples*

There is traffic due to infrastructure and this can be a common problem

Solution Set

Modern Transport

1. Ride sharing models to take advantage of potential business.

Envioroment

1. Focus in on the rainforest and issues due to climate change when considering business problems.

Models To Follow When It Coems to Business

• *Coopoeration is all that it takes."
• Factors to consider*
• One's View is only what helps the situation

Alternative Factors

• Ciriacy Wantrup
• Elinor Ostrom: the Community Should come before profits

Solution Sets

These Solutions work :Designated Boundaries For Help

• That the rules fit the area
• The People have a voice is is that that is what what is most inportance.

Examples:

• Those that collect on behalf of an entity or area
• Community Management Helps

Some Solution Sets To Prevent Issues

• Governing Common Laws What if exclusion is more costly
• And That People and Commuties are protected
• One Size Models will not fix all markets, cooperation and help is what needs to be considered.

DISCOUNTING Models and How it Affects Markets

• Fcats don't Tell Us What to Expect
• One: If all factors were 7 % the revenue will go higher when that is the truth.
• Example of this type of model, a plan for billions over decades does make sense under the new revenue because the price will change based solely on revenue If people are intrested, it should come at a cost. An intersting case is a prize paid over an extended period, and the value of what its worth and how prices have a affect on overall consumption

•  A five-year plan that is more expensive up front that is better due to annual price increases,
  

The end goal is to value shorts terms to long terms gains.

• What are some traits of a good market:*
• People that plan earlier save for wealth.
• People dont act as the same and often get the instant gains.

Proper Market Evaluation

• Those in market must have a sense
• Those That can handle change can have great potential for growth*
• These facts will help in telling your market is truly in order or not."
• • The question is what it is going to happen to the next generation"*

1. • This includes the need for a social discount plan
2. • " Are Our Generations Worth Less Than the Present".
3. • Gvt Should have plans in case of emergency

Discount Rates and the use of it

• "The less the the future is going to have less effects than what you have now.
• Those that get to there finaincal are better and the future can be bad and still affect the outcome.
• There is too much intant gratification to be the end goal

As An Act of Citizens

• There has to be value

Rates

• There need to be right ones for the markets and there must climate change to be in order.
• IF YOU GO TO WHALE WATCHING RATES THEY WILL SOON BECOME NO EXISTANT"
• **Is This Really That Sustainabulity,
• Cake Will Be Cut
• The Goal is for eveyone to win
• People should want to have well being

FInallize Plan Through Proper Models

• Distirubtive Effects of Public Projets
• Proper rules should follow to better to the project
• There often lies a question
• You must commit to long term goals*

Alts

• All will have a benefit
• Follow ethical rules for best output,