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The Environment and Development - PowerPoint PPT Presentation


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The Environment and Development. Chapter 11. Economics and the Environment. Environmental issues affect, and are affected by, economic development Poverty and ignorance may lead to non-sustainable use of environmental resources. Environment and Development: The Basic Issues.

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Presentation Transcript
economics and the environment
Economics and the Environment
  • Environmental issues affect, and are affected by, economic development
  • Poverty and ignorance may lead to non-sustainable use of environmental resources
environment and development the basic issues
Environment and Development: The Basic Issues
  • Sustainable development and environmental accounting
environment and development the basic issues1
Environment and Development: The Basic Issues

Sustainable net national product is:

Where

GNP is Gross National Product

Dm is the depreciation of manufactured

capital assets

Dn is the depreciation of environmental

capital

environment and development the basic issues2
Environment and Development: The Basic Issues

Alternatively, sustainable net national product is:

Where

GNP is Gross National Product

Dm is the depreciation of manufactured

capital assets

Dn is the depreciation of environmental

capital

R is expenditure needed to restore

environmental capital

A is expenditure required to avert

destruction of environmental capital

environment and development the basic issues3
Environment and Development: The Basic Issues
  • Sustainable development and environmental accounting
  • Population, resources, and the environment
  • Poverty and the environment
  • Growth versus the environment
  • Rural development and the environment
environment and development the basic issues cont d
Environment and Development: The Basic Issues, cont’d
  • Urban development and the environment
  • The global environment
the scope of environmental degradation a brief statistical review
The Scope of Environmental Degradation: A Brief Statistical Review
  • Environmental problems have consequences both for health and productivity
rural development and the environment a tale of two villages
Rural Development and the Environment: A Tale of Two Villages
  • Representative African village
  • Representative South American village
traditional economic models of the environment1
Traditional Economic Models of the Environment
  • Privately owned resources
  • Common property resources
traditional economic models of the environment2
Traditional Economic Models of the Environment
  • Privately owned resources
  • Common property resources
  • Public goods and bads: regional environmental degradation and the free-rider problem
  • Limitations of the public goods framework
urban development and the environment
Urban Development and the Environment
  • The ecology of urban slums
  • Industrialization and urban air pollution
urban development and the environment1
Urban Development and the Environment
  • The ecology of urban slums
  • Industrialization and urban air pollution
  • Problems of congestion and the availability of clean water and sanitation
the need for policy reform
The Need for Policy Reform
  • The recognition that action to reduce environmental hazards has been insufficient is now widespread
  • However, budgets are limited
  • Better pricing policies would improve matters
  • Inclusion of women in the design of environmental policy is important
the global environment rain forest destruction and greenhouse gases
The Global Environment: Rain Forest Destruction and Greenhouse Gases
  • Many scientists are alarmed by recent evidence regarding ozone depletion and global warming
  • Economists also are concerned with the costs of global climate change
  • The solutions seem to involve both LDCs and industrialized countries
policy options in developing and developed countries
Policy Options in Developing and Developed Countries
  • What LDCs can do
    • proper resource pricing
    • community involvement
    • clearer property rights and resource ownership
    • improved economic alternatives for the poor
    • improved economic status of women
    • industrial emissions abatement policies
policy options in developing and developed countries cont d
Policy Options in Developing and Developed Countries, cont’d
  • How developed countries can help LDCs
    • trade policies
    • debt relief
    • development assistance
  • What developed countries can do
    • emissions controls
    • R&D
    • import restrictions
concepts for review
Absorptive capacity

Biomass fuels

Clean technologies

Common property resource

Consumer surplus

Debt-for-nature swap

Deforestation

Desertification

Environmental accounting

Environmental capital

Externality

Free-rider problem

Global warming

Greenhouse gases

Concepts for Review
concepts for review cont d
Internalization

Marginal cost

Marginal net benefit

Ozone depletion

Pollution tax

Present value

Private costs

Producer surplus

Property rights

Public bad

Public good

Scarcity rent

Social costs

Soil erosion

Sustainable development

Sustainable national income

Total net benefit

Concepts for Review, cont’d