Intro To Environmental Economics PDF

Environmental Economics: : An Introduction Mark Antony B. Perello Instructor Guide Questions 1.Can love be commodified, and if so, how does this impact genuine emotional connections? E c o The word economics n came from the Greek word o OIKONOMIA (oikos...

Environmental Economics: : An Introduction Mark Antony B. Perello Instructor Guide Questions 1.Can love be commodified, and if so, how does this impact genuine emotional connections? E c o The word economics n came from the Greek word o OIKONOMIA (oikos – house m and nomos – management) i c which means household s management. E C Concerned with decision O making by agents, which N include consumers, firms, O government agencies, and M I non-profit organizations like C environmental advocacy S groups. E c a social science which o deals with the n PRODUCTION, EXCHANGE, o m DISTRIBUTION and i CONSUMPTION of scarce c resources to satisfy the s unending needs and wants.  b. Labor – the most important and integral FOUR BASIC ECONOMIC part of production. The ACTIVITIES human effort used in 1.PRODUCTION production. c. Capital – man – made Deals with the factor of production. The factors necessary to physical resource or the financial resource. create wealth. d. Entrepreneur – the Factors of Production economic manager. The a.Land – the natural factor that combines other factor of production to be resources found in used in producing goods nature. and services.  4. Consumption the utilization of goods and FOUR BASIC services for the satisfaction of human needs and wants. The ultimate reason ECONOMIC ACTIVITIES why wealth is created. 2. Exchange Needs The mutual sharing of Refers to the things / situation wealth. The process of trading which are truly necessary and essential. excess of specialized It refers to the goods and services which gives satisfaction that we cannot lived commodities over and above without. Refers to the basic needs - food, the needs of an individual. shelter and clothing. 3. Distribution Deals with the Wants refers to the things or situations we apportionment of the social truly desires. Can be considered as just income among the different luxury. These good gives satisfaction but factors that cooperate. we can live without these goods.  Optimum Allocation The ultimate answer to the SCARCITY AND THE problems of scarcity. BASIC ECONOMIC The alternative solution to the PROBLEM problem of scarcity is the systematic Scarcity distribution and maximum use of The main reason of any economic resources according to man’s economic problem. needs. A condition or situation Opportunity Cost wherein there is a prevailing The cost or benefits forgone limitation of resources in a long in the alternative use of period of time. The state where limited resources. resources are not enough to The cost that is given up satisfy the wants of people at the when an alternate product or time when it is needed. service used in place of the other. 1.How do these resources contribute to the Philippine economy? 2.What are the main challenges facing the sustainable management of these resources? E N According to Miriam Webster V dictionary, the environment is the complex I of physical, chemical and biotic factors R such as climate, soil and living things that O act upon an organism or an ecological N community and ultimately determine its M form and survival. E It is also known as the natural N resources and is characterized as God – T given. E N A broad definition of the environment V might be the surroundings: the conditions I influencing development or growth. Thus, R you might include any number of things that O are around you as being part of our N environment. For example, the environment can be M defined to include all flora and fauna, aquatic E ecosystems, energy and material resources, N and the atmosphere (Hanley et al 2007). T E N An Environment is everything that is V around us, which includes both living and I nonliving things such as soil, water, animals R and plants, which adapt themselves to their O surroundings. It is nature’s gift that helps in N nourishing life on Earth. M The environment plays an important role in the existence of life on the planet earth. The E word Environment is derived from the French N word “Environ” which means “surrounding.” T E N E What is the relationship between V C economics and the environment? I O The use and value of natural R a N resources is the link between O n O economics and the environment. N d M Environmental health affects the M I stability and growth of the economy, E C and economic activities depend on N S environmental resources for T production and consumption. E What is the relationship between N E economics and the environment? V C Economics and the environment are I O connected; natural resources are necessary R a N for economic activity, and environmental O n O factors have an impact on economic results. N d M Productivity, tourism, and agriculture are M I all supported by a healthy environment; E C on the other hand, destruction of the N S environment may have negative effects on T health and biodiversity.  The study of agent’s decisions that have environmental consequences and how to affect these decisions to achieve environmental quality goals. Environmental economics is Environmental the study of the cost-effective allocation, use, and protection of Economics the world's natural resources. Environmental economics focuses on how they use and manage scarce resources in a manner that serves the population while meeting concerns about environmental impact.  Defined as the branch of economics that deals with the relationship between the economy and the environment. Environmental economics focuses on allocating scarce Environmental resources to meet human needs while still preserving Economics the environment. This process involves balancing the benefits and costs of specific economic activities on the environment and outlining policies that further sustainable development.  The main objective of environmental economics is to maintain a balance between economic Goal of development and environmental quality and Environmental sustainability. To achieve Economics this environmental economist time to explore the various social economic possibilities to reduce pollution and uplift the standard of living of the people.  1. Environmental economics helps us understand the true value of natural resources. Importance of One of the key Environmental contributions environmental economics is of Economics that it helps us understand the economic value of natural resources, such as forests, waterways, and wildlife.  2. It provides a framework for designing effective environmental policies. Environmental economics Importance of also provides a framework for designing policies that can help Environmental mitigate environmental problems. By analyzing the Economics costs and benefits of different policy options, policymakers can identify the most effective solutions that balance environmental protection with economic growth.  3. It encourages sustainable resource use. Through market-based Importance of mechanisms, such Environmental pollution taxes, environmental economics Economics seeks to encourage sustainable resource use by incentivizing businesses and individuals to reduce their environmental impact.  4. It highlights the importance of environmental justice. Importance of Environmental economics also recognizes Environmental that environmental Economics problems disproportionately affect low-income and marginalized communities.  1. Sustainable development – It is the development strategy that meets the needs of the present without compromising the needs of the future. Thus, growth is important, but so is the sustainability of the environment. Scope of 2. Externalities – It refers to the benefits and costs arising from commercial activities for Environmental which the price is unknown. Hence, they go unnoticed in society but have huge impacts. For example, the natural resources we use for Economics free and the pollution we cause to the environment have no association with a market price. 3. Market failure – Externalities lead to market failure, which arises when the market doesn’t represent the true cost of a good or resource. This happens because, more often, people take environment and its resources for granted.  4. Valuation of the environment – The valuation helps assess the worth of natural resources and many aspects of environmental policies before Scope of implementing them. This will help in making better decisions in the best Environmental interests of all. 5. Strategies – By considering all the Economics relevant factors, environmental economists try to find solutions for the bigger problem – environmental protection. Some strategies include taxing parties responsible for the pollution, offsetting, etc. But still, there’s a long way to go. Provide the answers to the following questions or statements. 1. The English translation of the term OIKONOMIA. 2 – 5 The four basic economic activities 6.The most important and integral factor of production. 7.The branch of economics that deals with the relationship between the economy and the environment. Choose the letter of the correct answer. 8. It is the best description for the environment. a. Natural b. god – given 9. The main objective of environmental economics. a. Conserve and preserve the environment for the future b. Create balance in the use of the environment and economic development 10.It is the development strategy that meets the needs of the present without compromising the needs of the future. a. Sustainable development b. Valuation of the environment  References https://fastercapital.com/topics/the-importance-of- environmental-economics.html/1 https://www.sfu.ca/~wainwrig/Econ400/documents/Lecture- Notes-part_One-10-3.pdf https://www.slideshare.net/slideshow/environmental- economics3pptx/254410646 https://www.wallstreetmojo.com/environmental-economics/