Ch. 3 - Economics Presentation PDF

“In these days there is arising a many-sided and tremendous problem in regard to saving the natural world from ignorant, short-sighted, commercial vandalism. Every tree must be cut down, every plant pulled up, every wild thing slaughtered, every beautiful scene disfigured, if only there...

“In these days there is arising a many-sided and tremendous problem in regard to saving the natural world from ignorant, short-sighted, commercial vandalism. Every tree must be cut down, every plant pulled up, every wild thing slaughtered, every beautiful scene disfigured, if only there is money to be made from it. ” Roger Tory Peterson “Anyone who believes in indefinite growth on a physically finite planet is either mad [crazy] or an economist.” David Attenborough  Ch. 3 - Economics Decision-making processes True/Perceived Risks Public trust impt for a business – lacking w/regard to cons. aspects→  Resources: anything that makes goods/services available Supply: amt of goods/services Demand: amt of goods/services consumers are willing to pay for Supply depends on: 1. Raw materials: amt/availability 2. Cost of extraction, manufacturing, transportation 3. Competition 4. Recycling costs→  supply-demand curve if demand > supply = prices rise – reverse true as well→  Command & Control Mechanisms Fines, taxes cheaper not to pollute, strong incentive not to pollute Fines used to cleanup pollution; however… Market Based Instruments (MBIs) Incentive-based solutions rather than C&C regulation 4 Categories of MBIs 1. Information programs: labeling, public educ./awareness→  2. Tradable emissions permits: internalizes pollution costs sell credits to others if polluting < permitted Worked in acid rain, now trying CO2 market 3. Performance Bond/Deposit Refund DR = surcharge on product; refunded when product recycled – pop bottles PB = mine reclamation: cover cost of reclamation when completed or forfeited 4. Subsidies: loans/grants/tax breaks given to industry by govt loans for environmentally-sound companies→  Extended Product Responsibility (EPR) focus on life cycle of products→  Sustainable Development: quality of life, econ. growth, conserve natural resources Major goal for conservation now/future paradox: healthy economies use more resources/create more pollution, but also have the $/technology to clean it up or prevent it→  Wangari Maathai: Green Belt Movement http://www.greenbeltmovement.org/who- we-are/our-history→  5 Factors of Sustainability 1. Renewability: balance use/availability 2. Substitution: w/renewables 3. Interdependence: global scale 4. Adaptability: changing conditions 5. Institutional Commitment: all scales→  Pollution Prevention Costs: costs to industry/govt to prevent release of pollution (sewage treatment plant) External Costs: costs borne by someone other than the polluter (ex: fishermen - polluted lake) Pollution Costs: costs to industry/taxpayer to clean up pollution/health costs ex: Deepwater Horizon→  Debt-for-Nature: international debt huge debt forgiven in exchange for conservation/envtl protections protection cheaper than paying debt Increase sustainable dvlpt Tragedy of the Commons: common ownership of a limited resource Benefit to all if use is less than available, but indvls maximize their use (greed) until the resource is destroyed ex: England - commons (cattle) restraint is the key issue→  Wildlife Management Plan Budget Issues Requires planning, common sense Must write budget for upcoming year based on previous year’s budget; project future costs At mercy of funding agency or owner Can’t spend more than allocated, yet still need to attain your wildlife mgt objectives Study the costs of materials, labor, land