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Environmental Economics

This document explores the field of Environmental Economics, highlighting key issues such as population growth, fossil fuel consumption, acid rain, and ozone depletion. It discusses how these factors impact environmental resources and examines historical responses to air pollution, including the success of the U.S. SO2 cap-and-trade system. The document also addresses current trends in pollutants like CO2 and SO2, and the implications of these changes on global warming and environmental policy. Efforts like the Montreal Protocol are noted in the context of ozone layer protection.

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Environmental Economics

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  1. Environmental Economics Hendrik Wolff hgwolff@u.washington.edu

  2. What is EE? • Brief Outline of “some” Environmental Problems • Population Growth • Fossil Fuel burning and Carbon Dioxide • Acid Rain and Sulfur Dioxide • Stratospheric Ozone Depletion

  3. State of the Environment • Population Growth puts pressure on environmental resources

  4. Ice Core Measures -- Vostocin the Antarctica.

  5. 2012: atmospheric • CO2 = 394ppm • http://www.350.org/

  6. Present and Future Mean Temperature

  7. Average Daily Temperature Distribution RED: 2090-2100 Projected A2 scenario from CCSM 3.0 in IPCC (2007) BLUE: 1960-90 Normals San Francisco

  8. Average Daily Temperature Distribution Boston Houston RED: 2090-2100 Projected A2 scenario from CCSM 3.0 in IPCC (2007) BLUE: 1960-90 Normals San Francisco

  9. County Temperature Data

  10. County Temperature Data • Drawback: • 1 day of 115 F & 4 days of 65 F  50 CDD • 5 days of 75 F  50 CDD

  11. 33% Decrease 116% Increase

  12. Differential trends in Carbon Dioxide (CO2) versus Sulfur Dioxide (SO2)

  13. Differential trends in Carbon Dioxide (CO2) versus Sulfur Dioxide (SO2)

  14. SO2: First Big “Success” Story of Impact of “Environmental Economics” on Policy • SO2  Acid Rain  Dying forests

  15. Cap and Trade of SO2 emissions • By late eighties: U.S. emits 20 million tons SO2/year • 1990 C & T established with goal to cut emissions by 50% over 10 years

  16. Cap and Trade of SO2 emissions • By late eighties: U.S. emits 20 million tons SO2/year • 1990 C & T established with goal to cut emissions by 50% over 10 years • Figure of “price of sulfur” = marginal abatement cost of SO2 control dropped from USD 500 to USD65

  17. Ozone Depletion in Stratosphere • Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-Bskin cancer) • Refrigerants (i.e. CFCs) destroy O3 molecules • World observes steady magnitude of ozone hole in stratosphere since 1980 • 1986: Montreal Protocol bans (most) CFCs • Ozone hole slowly starting now to decrease BUT global warming cools stratosphere, difficult to predict... • http://www.youtube.com/watch?v=qUfVMogIdr8

  18. Ozone Depletion in Stratosphere • Ozone in Stratosphere necessary to decrease ultra violet radiation to hit planet (UV-Bskin cancer) • Refrigerants (i.e. CFCs) destroy O3 molecules • World observes steady magnitude of ozone hole in stratosphere since 1980 • 1986: Montreal Protocol bans (most) CFCs • Ozone hole slowly starting now to decrease BUT global warming cools stratosphere, difficult to predict... • http://www.youtube.com/watch?v=qUfVMogIdr8

  19. Which Pollutants Increase/Decrease? • Increase • CO2 • Illegal oceanic waste dumping • Nuclear contamination • Particulate Matter in Urban Areas (Developing Countries) • Decrease • SO2 in U.S. • Local Water Pollution  Homework

  20. Which Pollutants Increase/Decrease? • Increase • CO2 • Illegal oceanic waste dumping • Nuclear contamination • Particulate Matter in Urban Areas (Developing Countries) • Decrease • SO2 in U.S. • CFCs worldwide • Local Water Pollution  Homework

  21. Which Pollutants Increase/Decrease? • Increase • CO2 • Illegal oceanic waste dumping • Nuclear contamination • Particulate Matter in Urban Areas (Developing Countries) • Decrease • SO2 in U.S. • CFCs worldwide • Local Water Pollution  Homework

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