Environmental Science: Toward a Sustainable Future  Richard T. Wright

Environmental Science: Toward a Sustainable Future Richard T. Wright PowerPoint PPT Presentation


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Economics, Public Policy, and the Environment . Economics and public policyResources and the wealth of nationsPollution and public policyBenefit

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Environmental Science: Toward a Sustainable Future Richard T. Wright

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1. Environmental Science: Toward a Sustainable Future Richard T. Wright Economics, Public Policy, and the Environment PPT by Clark E. Adams

2. Economics, Public Policy, and the Environment Economics and public policy Resources and the wealth of nations Pollution and public policy Benefit–cost analysis Politics, the public, and public policy

3. Economics and Public Policy The need for environmental public policy (see Table 22-1) Promote the common good Improvement of human welfare Protection of the natural world

4. Relationships between Economic Development and Environment (see Fig. 22-1)

5. Relationships between Economic Development and Environment (see Fig. 22-1)

6. Economic Systems: Centrally Planned Economy Characteristic of socialist countries Ruling class makes all decisions Equity and efficiency theoretically achievable North Korea and People’s Republic of China last holdouts

7. Economic Systems: Free-Market Economy Driven by supply and demand Market driven Easily manipulated Only offers free access to goods and services, not ability to pay Developed countries

8. Economic Activity: Classic View

9. Resources and the Wealth of Nations Economic production is the process of converting the natural world into a manufactured world. Example: trees to paper to trash Natural capital = ecosystems and mineral resources = a major element in the wealth of nations (see Fig. 22-3)

10. Economic Activity: Environmental View

11. The Wealth of Nations Produced assets: human-made things Natural capital: goods and services supplied by natural ecosystems (see Table 22-2) Renewable Nonrenewable Subject to depletion

12. The Wealth of Nations Human resources Human capital: physical, psychological, and cultural attributes of a population Social capital: the social and political environment people create for themselves in society Knowledge assets: the codified or written fund of knowledge that can be transferred to others

13. How Society’s Assets Complement Each Other

14. Composition of World Wealth

15. Shortcomings of Gross National Product (GNP)

16. Environmental Accounting Does not account for depreciation of natural capital – why? Environmental accounting = putting environmental assets and services into monetary units

17. Resource Distribution Essential conditions for achieving equity in the distribution of resources A well-developed body of law Honest legal system Inclusiveness Broad civic participation Free press

18. Intergenerational Equity Meeting the needs of the present without compromising the ability of future generations to meet their needs

19. Examples of Intergenerational Equity? (True or False) Let future generations cope with global climate change Cut all the trees and sell the timber today

20. Examples of Intergenerational Equity? (True or False) Hold onto the trees for a better price in the future Give up short-term gains for sustainable long-term harvests

21. Pollution and Public Policy: The Policy Life Cycle

22. Recognition Stage Low in political weight Media have popularized the policy Dissension is high

23. Formulation Stage Rapidly increasing public weight Media coverage is high Debate about policy options occurs

24. Implementation Stage Real political and economic costs of a policy are exacted Public concern and political weight are declining Issue not very interesting to media

25. Control Stage Policies broadly supported The environment is improving Regulations may become more simplified

26. Environmental Problems in the Policy Life Cycle

27. Objective of Environmental Policy

28. Economic Effects of Environmental Public Policy Attributes of the best policies (Three “E’s”) Effectiveness Efficiency Equity

29. Policy Options: Market or Regulatory? Transfers wealth from polluters to pollution controllers Led to the creation of an environmental protection industry as major GNP participant Great for the economy

30. Policy Options: Market or Regulatory? Response based on economic principles of profitability Polluters required by law to comply with regulations Emission allowances under Clean Air Act Criteria covering air pollutants Practically guarantees a certain sustained level of pollution

31. Benefit–Cost Analysis Benefit–cost analysis of environmental regulations builds efficiency into policy so that society does not have to pay more than necessary for a given level of environmental control.

32. External and Internal Costs External bad: cost of adverse health from pollution External good: benefits from improved job performance in pollution-free work environment

33. The Costs of Environmental Regulations

34. Cost-effectiveness of Pollution Control

35. Cost-effectiveness of Pollution Control

36. Cost-effectiveness of Pollution Control

37. Benefits That May Be Gained by Reduction and Prevention of Pollution (see Table 22-3) Improved human health Improved agricultural and forest production Enhanced commercial and/or sport fishing Extended material lifetimes Higher real estate values

38. Cost-effectiveness Analysis Significant benefit may be achieved by modest degrees of cleanup in the short-term. Reducing level of pollutant below threshold levels will not yield observable improvement

39. Politics, the Public, and Public Policy Formulate laws Receive appropriations Authorize appropriations to governmental agencies

40. Politics and the Environment: 2002–2004 Mobilize party constituents Solicit large $ contributions Discredit opponents Influence public media Put on hold or reverse all environmental policies pre-2002

41. Citizen Involvement

42. End of Chapter 22

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