Objectives:. 1. Differentiate between the different ways of assessing wealth. (GDP, GNP, ISW, HDI & GDI). 2. Contrast internal costs, external costs & costs & internalizing costs. 3. Contrast Grameen and World Bank loans. 4. What factors a successful Cooperative Management System.
1. Differentiate between the different ways of assessing wealth. (GDP, GNP, ISW, HDI & GDI).
2. Contrast internal costs, external costs & costs & internalizing costs.
3. Contrast Grameen and World Bank loans.
4. What factors a successful Cooperative Management System.
Cost-benefit analysis: Attempts to assign values to resources as well as to social & environmental effects of carrying out or not carrying out a given undertaking.
Steady-state economy – low human birth & death rates, use of renewable energy sources, material recycling, emphasis on durability rather than a high throughput of materials.
High throughput - maximizes the movement of materials , minimizes labor, creating lots of waste.
Internal costs – expense of gaining access to a resource and turning it into a useful product or service.
World Bank – large loans for large projects (many with adverse environmental impacts – like dams).
Grammeen - $67 is typical. For gaining an income – ex. Sewing machine.
Capital – any form of wealth available for use in the production of more wealth.
Natural capital – comes from the earth
Human capital comes from humans: abilities, imagination
Nonrenewable resources – earth’s geological endowments.
Renewable resources – can be replenished (unless used faster than replenishment time.)
Intangible resources – open space, beauty, serenity, wisdom, diversity & satisfactions. They can be both infinite and exhaustible.
THREE NON-MARKET VALUES
Use value- the price we pay to use or consume a resource.,
Option value – preserving for the future.
Existence value, aesthetic value, cultural value, scientific value.
“What responsibilities do businesses have to protect the environment or save resources beyond the legal liabilities spelled out by the law?”
NONE says Milton Friedman. “It would be unethical for corporate leaders to consider anything other than maximizing profits.”
Summarize Ray Anderson’s eco-efficient carpeting.