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Questions and Answers
What is the primary focus of Professor Hari Priya Gundameda's research?
What is the main issue in economics that is related to environmental problems?
What is the main idea of economics in relation to environmental science?
What are the key decision-making problems in economics?
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What is the significance of Professor Hari Priya Gundameda's background in environmental economics?
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What is a fundamental principle of economics relevant to environmental science?
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What is the primary source of resources for the production sector?
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What is the main reason for environmental problems, according to the course?
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What is the term for the value of goods and services provided by the environment to the consumption sector?
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What is the primary factor that has contributed to the rapid growth of population since the industrial era?
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What is the purpose of purchasing power parity (PPP) in calculating GDP?
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What is the expected growth rate of India's economy, according to the text?
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What is the ranking of India's economy in terms of GDP in current prices?
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What is the primary factor that determines a country's standard of living?
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What is the shift in economic growth observed in recent years, according to the text?
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Study Notes
Here is the summary of the text:
• Professor Hari Priya Gundameda from the Department of Economics introduces the module on economics for environmental science, highlighting the relevance of economics to environmental science.
• The professor has a background in mathematics, economics, and environmental economics, with a Ph.D. from the Indira Gandhi Institute of Development Research and postdoctoral research from the University of Gothenburg and the London School of Economics.
• The professor's main interests lie in environment and development economics, energy economics, and climate change.
• Economics is about managing scarce resources, and the environment is one of the scarce resources.
• Key decision-making problems in economics include how people decide what to buy, how much to work, how much to save and spend, and how firms decide how much to produce.
• The production process influences the environment, making economics central to environmental problems.
• The principles of economics relevant to environmental science include:
‣ People face trade-offs ‣ The cost of any action is measured in terms of foregone opportunities ‣ Rational people make decisions by comparing marginal costs and marginal benefits ‣ People respond to incentives ‣ Countries benefit from trade ‣ Markets are usually a good way of coordinating trade ‣ A country's standard of living depends on its ability to produce goods and services
• The course will cover the links between human activities, economy, and environment, including the reasons for environmental problems, local and transboundary pollution, and policy instruments to control pollution.
• The economy is interdependent on nature, with the production sector drawing resources from the environment and generating waste in return.
• The environment also provides goods and services to the consumption sector, and recreational or amenity values.
• There is a recycling process within the production and consumption sectors.
• The global life support services offered by the environment, such as the sun's energy and oxygen, are essential for human survival.
• The exploitation of resources has led to productive growth, but it is essential to be conscious of the interactions between the economy and the environment.
• The population has grown rapidly since the industrial era, with the population curve doubling in just 40 years after 1950.• In the past, humans were subject to the forces of nature, leading to a stable population due to balanced birth and death rates. • With the ability to conquer nature, population started increasing, indicating an increase in well-being, as people no longer died at a young age of 30. • Economic indicators, such as GDP, are used to judge a country's ability to produce goods and services and its impact on the quality of life. • In 1974, India's GDP per capita was around $5,000, while very few countries had a per capita income above $50,000. • By 2016, the quality of life had improved, with India's GDP per capita increasing slightly, but still in the $5,000 to $10,000 range. • In 2020, some countries had made significant progress in increasing their per capita income, while India remained in the $5,000 to $10,000 range. • Absolute GDP is another measure, where countries with large populations, like India, have a higher absolute GDP but lower per capita income. • Purchasing power parity (PPP) is used to correct for differences in the cost of goods and services between countries, and when adjusted for PPP, India is the third-largest economy in the world. • India's GDP in current prices is around the sixth-largest, but when adjusted for PPP, it jumps to the third position. • The growth story of countries varies, with India expected to grow at 6.88%, China at 4.28%, and the Philippines at 5.66%, while developed countries will grow at a slower rate. • The growth is shifting to Southeast Asia and Africa, with countries like Uganda and Egypt showing promising growth rates. • The standard of living is not defined by income alone, and inequality in the distribution of resources is an important aspect, measured by the Gini coefficient. • India has a Gini coefficient between 35 and 40, indicating a moderate level of inequality, while countries like South Africa have a higher level of inequality. • Literacy rates are another important indicator, with developed countries having high literacy rates and India still in the 50-80% range. • Life expectancy is also a key indicator of standard of living, with global averages increasing over time, from less than 40 years in 1800 to over 60 years in 2016. • In 2016, countries like the US, Canada, and New Zealand had life expectancies above 70 years, while India still had a lower life expectancy.
• In 2015, India's average life expectancy was around 68 years, with variations between male and female life expectancies.
• By 2020, India's average life expectancy had increased to around 69 years, with differences in life expectancy across various states within India.
• The demographic transition in India, which began after 1950, has led to a doubling of the population growth rate, with four stages: high birth and death rates, declining death rates and high birth rates, declining birth and death rates, and low birth and death rates.
• The current stage of demographic transition in India is characterized by declining birth rates and increasing life expectancy, leading to an aging population.
• This demographic shift creates a different kind of problem for the economy, with an older population compared to a younger population.
• Each state in India has a population equivalent to that of a separate country, making it a global challenge to manage resources and environmental impact.
• The environmental impact of population growth is influenced by three factors: population size, consumption per person, and technological impact per unit of consumption.
• The IPAT equation (Environmental Impact = Population x Affluence x Technology) is used to estimate the environmental impact of population growth.
• Developing countries like India have a high population size but low consumption per person, while developed countries have a low population size but high consumption per person.
• The technological impact per unit of consumption is also high in developing countries, leading to a significant environmental impact.
• To reduce environmental impact, India needs to improve upon its technological efficiency and reduce consumption per person.
• The world's most polluted cities are primarily located in India, with Bhiwadi, Ghaziabad, and Delhi ranking high in terms of air pollution.
• The main sources of pollution in Delhi are soil and road dust, coal and fly ash, solid waste burning, vehicular pollution, biomass burning, and secondary particles.
• The growth story in India has led to an increase in air pollution, water pollution, and solid waste generation, negatively impacting the environment and human well-being.
• Examples of environmental degradation include the pollution of Bellandur Lake in Bangalore, which has caught fire due to methane buildup, and the pollution of rivers like the Brahmaputra.
• The connection between the economy, production, consumption, and environment is crucial, with the environment serving as a source of raw materials, having an amenity value, and being impacted by human activities.
• The overlap between these three circles (economy, production, and environment) means that if the environment is degraded, the amenity value declines, and the availability of raw materials decreases.
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Description
This module introduces the concept of economics in environmental science, covering the principles of economics, the impact of human activities on the environment, and the importance of understanding the interconnection between the economy, production, and environment. It also explores the growth story of countries, including India, and the indicators of standard of living.
