Economics, Politics, Worldviews and the Environment
Chapter 14<<double brackets>> will be on chap quiz<<<Triple brackets>>> will be on mid-term
14-1 How Are Economic Systems Related to the Biosphere?
Concept 14-1 Ecological economists and most sustainability experts regard human economic systems as subsystems of the biosphere and subject to its processes and limiting factors.
<<<EconomistsNeoclassical EcologicalBiosphere is the subset Human economy is the subset>>>
Economic Systems Are Supported by Three Types of Resources
Economic systems are supported by• <<Natural Resources>>• Human capital, <<human resources>>• Manufactured capital, <<manufactured
resources>>
Fig. 23-2, p. 613
Natural Resources
Manufactured Resources
Human Resources
Goods and Services
Economists Disagree over Natural Capital, Sustainable Economic Growth
High-throughput economies • Resources flow through and end up in planetary
sinks
Models of ecological economists
Strategies toward more sustainable eco-economies
<<<Be able to identify high/low throughput economies from following two charts>>>
High-Throughput Economies Rely on Ever-Increasing Energy, Matter Flow
Fig. 23-13, p. 629
Inputs (from environment)
System throughputs
Outputs (into environment)
High-quality energy
Energy conservation
Low-quality energy (heat)
Low-waste economyWaste and
pollution prevention
Pollution control
Waste and pollution
High-quality matter
Recycle and reuse
Fig. 23-5, p. 615
Solar Capital
Goods and services
Economic Systems Heat
ProductionNatural Capital Depletion of nonrenewable
resourcesNatural resources such as air, land, soil, biodiversity, minerals, and energy, and natural services such as air and water purification, nutrient cycling, and climate control
Consumption
Degradation of renewable resources (used faster than replenished)
Pollution and waste (overloading nature’s waste disposal and recycling systems)
14-2 Using Economic Tools to Promote Environmental Sustainability
Concept 14-2A Using resources more sustainably will require including the environmental and health costs of resource use in the market prices of goods and services (full-cost pricing).
Concept 14-2B Governments can help to improve and sustain environmental quality by subsidizing environmentally beneficial activities and taxing pollution and waste instead of wages and profits.
Active Figure: Two views of economics
Most Things Cost a Lot More Than You Think
Market price, direct price
Indirect, external, or hidden costs
Direct and indirect costs of a car
Should indirect costs be part of the price of goods?• Economists differ in their opinions
Using Environmental Economic Indicators Can Help Reduce Our Environmental Impact
Measurement and comparison of the economic output of nations• Gross domestic product (GDP) • Per capita GDP
Newer methods of comparison• Genuine progress indicator (GPI) • Happy Planet Index (HPI)• General National Happiness (GNH)
Poor Family Members Struggling to Live in Mumbai, India
We Can Include Harmful Environmental Costs in the Prices of Goods, Services
Environmentally honest market system
Why isn’t full-cost pricing more widely used?
Government action to phase in such a system
Fig. 23-8, p. 620
35,000
30,000
25,000
20,000Per capita gross domestic product (GDP)
15,000
10,0001996
Do
llar
s p
er p
erso
n
5,000
Per capita genuine progress indicator (GPI)0
1950 1960 1970 1980 1990 2000
Year
We Can Reward Environmentally Sustainable Businesses
Phase out environmentally harmful subsidies and tax breaks
Phase in environmentally beneficial subsidies and tax breaks for pollution prevention
Pros and cons
Subsidy shifts
We Can Tax Pollution and Wastes instead of Wages and Profits
Green taxes, ecotaxes
Steps for successful implementation of green taxes
Success stories in Europe
<<<Tax Shifting>>>
Environmental Laws and Regulations Can Discourage or Encourage Innovation
Regulation
Command and control approach• <<<Enforcement = fines/Law-suits>>>
Incentive-based regulations
Innovation-friendly regulations
We Can Use the Marketplace to Reduce Pollution and Resource Waste
Incentive-based regulation example
<<Cap-and-trade>> approach used to reduce SO2 emissions
Advantages
Disadvantages
Reduce Pollution and Resource Waste by Selling Services instead of Things
1980s: Braungart and Stahl• New economic model
Service-flow economy, eco-lease (rent) services• Xerox• Carrier
• Ray Anderson: lease carpets in the future • <<Shifting from Material-flow to Service-flow
economy means: _____________>>
Individual Matters: Ray Anderson
CEO of Interface, largest commercial manufacturer of carpet tiles
Goals• Zero waste• Greatly reduce energy use• Reduce fossil fuel use• Rely on solar energy• Copying nature
How’s it working?
14-3 How Can Reducing Poverty Help Us to Deal with Environmental Problems?
Concept 14-3 Reducing poverty can help us to reduce population growth, resource use, and environmental degradation.
The Gap between the Rich and the Poor Is Getting Wider
Poverty
Trickle-down effect
Flooding up
Wealth gap
We Can Reduce Poverty
South Korea and Singapore reduced poverty by• Education• Hard work• Discipline• Attracted investment capital
Developed countries can help• Cancel debt of the poorest nations• What else can they do?
Case Study: Making Microloans to the Poor (1)
<<Micro-lending or microfinance>>
1983: Muhammad Yunus• Grameen (Village) Bank in Bangladesh• Provides microloans; mostly to women• “Solidarity” groups• How does it work? • <<<Awarded 2006 Nobel Peace Prize for
Economics>>>• [Good research paper topic]
Case Study: Making Microloans to the Poor (2)
2006: Citibank and TIAA-Cref • Microloans
Dambisa Moyo• Dead Aid [Good research topic]• http://www.dambisamoyo.com/deadaid.html
We Can Achieve the World’s Millennium Development Goals
2000: Millennium Development Goals• Sharply reduce hunger and poverty• Improve health care• Empower women• <<Environmental sustainability by 2015>>• Developed countries: spend 0.7% of national
budget toward these goals
<<<How is it working? It’s not – spending on it is consistently less than 0.7% goal>>>
What Should Our Priorities Be?
14-4 Making the Transition to More Environmentally Sustainable Economics
Concept 14-4 We can use the four scientific principles of sustainability and various economic and environmental strategies to develop more environmentally sustainable economies.
We Can Use Lessons from Nature to Shift to More Sustainable Economies
Matter recycling and reuse economies
Mimic nature
Best long-term solution is a shift to• Low-throughput, low-waste, economy
Fig. 23-13, p. 629
Inputs (from environment)
System throughputs
Outputs (into environment)
High-quality energy
Energy conservation
Low-quality energy (heat)
Low-waste economyWaste and
pollution prevention
Pollution control
Waste and pollution
High-quality matter
Recycle and reuse
<<Know the circled boxes are the most critical events of a low throughput economy.>>
We Can Make Money and Create Jobs by Shifting to an Eco-Economy (1)
Hawken, Brown, and other environmental business leaders• Transition to environmentally sustainable
economies• Some companies will disappear• New jobs will be created
Fig. 23-15, p. 630
Environmentally Sustainable Businesses and Careers
Aquaculture Environmental lawBiodiversity protection Environmental nanotechnology
Biofuels Fuel cell technology
Climate change researchGeographic information systems (GIS)
Conservation biology Geothermal geologist
Eco-industrial design Hydrogen energy
Marine scienceEcotourism management Pollution prevention
Energy efficient product design
Reconciliation ecology
Selling services in place of productsEnvironmental chemistrySolar cell technology
Environmental (green) design
Sustainable agriculture
Environmental economics Sustainable forestry
Environmental education Waste reduction
Environmental engineeringWatershed hydrologist
Water conservationEnvironmental health Wind energy
<<<Name 2>>>
We Can Make Money and Create Jobs by Shifting to an Eco-Economy (2)
General Electric: “ecoimagination plan”
Bainbridge Graduate Institute and Presidio graduates• Triple bottom line: people, planet, and profit
14-5 The Role of Government in the Transition to More Sustainable Societies
Concept 14-5 A government can seek to protect environmental and public interests and encourage environmentally sustainable economic growth through its policies, which can be influenced by groups and individuals working together.
Democracy Does Not Always Allow for Quick Solutions (1)
Democracy
United States• Constitutional democracy• Three branches of government• Legislative• Executive• Judicial (CA Prop 8)
Democracy Does Not Always Allow for Quick Solutions (2)
Special-interest groups pressure the government• Profit-making organizations (Immigration?)• Nongovernmental organizations (NGOs)• Ideological (Gay, etc.)
Politicians focus on problems with short-term effects, not long-term
Certain Principles Can Guide Us in Making Environmental Policy (1)
The humility principle
The reversibility principle
The precautionary principle (Global Warming)
The net energy principle
The preventive principle
<<<Describe 1>>>
Certain Principles Can Guide Us in Making Environmental Policy (2)
The polluter-pays principle
The public access and participation principle• Internet/feedback
The human rights principle• Next generation
The environmental justice principle
How will these principles be implemented?
Developing Environmental Policy Is a Controversial Process
Funding needed
Regulations and rules needed to implement the law
Policy: important role in environmental regulatory agencies
Fig. 24-3, p. 639
Laws
Legislative branch Executive branch Courts
Lobbyists Lobbyists RegulatorsPublic hearing
Civil suits
Environmental organizations
Corporations and small businesses
Membership support
Patronize or boycott
Individuals
Purchase recyclable, recycled, and environmentally safe products
Recycle cans, bottles, paper, and plastic
Plant a garden
Donate clothes and used goods to charities
Use water, energy, and other resources efficiently
Use mass transit, walk, ride a bike, or carpool
<<Label 3 circles>>
Major Environmental Laws and Amended Versions Enacted in the U.S. Since 1969
<<Name 2>>
(Water – flouride)
Case Study: Managing Public Lands in the United States—Politics in Action (1)
<<<35% of the U.S. is public land>>>, ¾ in Alaska
Federal public land • National Forest System• National Resource Land• National Wildlife Refuges (biodiversity)• National Park System• National Wilderness Preservation System
Fig. 24-5, p. 641
National parks and preservesNational forests(and Xs) National wildlife refuges
Case Study: Managing Public Lands in the United States—Politics in Action (2)
Public land use• Views of conservation biologists and
environmental economists• Views of developers, resource extractors, and
many economists (Short-term temptation)
Since 2002: greater extraction of mineral, timber, and fossil fuel resources on public lands
Science Focus: Logging in U.S. National Forests Is Controversial
U.S. national forests managed by• Principle of sustainable yield• Principles of multiple use• Timber cutting loses money
Recreation, hunting, and fishing in the forests makes money and jobs (valid argument?)
Case Study: U.S. Environmental Laws and Regulations under Attack (1)
Who is opposing the U.S. environmental laws?• Some corporate leaders and other powerful
people• Some citizens• Some state and local officials
Why are the opposition?
Case Study: U.S. Environmental Laws and Regulations under Attack (2)
Since 2000, environmental laws weakened by executive orders and congressional actions
Prevent further weakening by• Science-based education• Education about the current state of the
environmental laws• Organized bottom-up political pressure from
concerned citizens
Individuals Can Influence Environmental Policy
Individuals matter
2007: Chinese citizens opposed construction of a chemical plant• Mobile phone text messaging spread the word
“Think globally; act locally”
Individuals Matter: Diane Wilson
1989: Lavaca, Bay, TX, U.S.• Hg superfund site
Sued Formosa Plastics
Author and activist for environmental and social justice
Citizen Environmental Groups Play Important Roles
Nonprofit nongovernmental organizations (NGOs) working at all levels• International• National• State • Local
Grassroots groups to organizations
Examples of NGOs and their global policy networks
Individuals Matter: Butterfly in a Redwood Tree (Up a Creek)
Julia Hill: Nonviolent civil disobedience• 2 Years in a redwood tree, named Luna• Protested cutting down these ancient trees• Did not save the surrounding forest• Her message: protect biodiversity
Students Can Play Important Environmental Roles
Student pressure on campuses to carry out environmental audits
Since June 2007, 458 university presidents add no additional CO2 emissions to their campuses
Arizona State University: Global Institute for Sustainability
Berea College, KY: Ecovillage apartments
14-6 How Can We Improve Global Environmental Security?
Concept 14-6 Environmental security is necessary for economic security and at least as important as military security; governments, international organizations, and corporations are recognizing this fact in their planning and policy making.
Environmental Security Is as Important as Military and Economic Security
Military security
Economic security
All economies supported by the earth’s natural capital
Failing states: rooted in ecological crisis• Darfur, Sudan, Africa
We Can Develop Stronger International Environmental Policies (1)
United Nations: most influential• Family of global policy-making organizations
Other influential groups• E.g., the World Bank
NRDC and China
U.N. Conference of Environment and Development: Agenda 21
We Can Develop Stronger International Environmental Policies (2)
Montreal and Copenhagen Protocols
Yale and Columbia Universities, U.S. • Developed the Environmental Performance Index
(EPI)
Fig. 24-9, p. 654
TRADE-OFFS
Global Efforts to Solve Environmental Problems
Good News Bad NewsEnvironmental protection agencies in 115 nations
Most international environmental treaties lack criteria for evaluating their effectiveness
Over 500 international environmental treaties and agreements 1992 Rio Earth Summit led to
nonbinding agreements with inadequate fundingUN Environment Programme (UNEP)
created in 1972 to negotiate and monitor international environmental treaties
By 2008 there was little improvement in the major environmental problems discussed at the 1992 Rio summit
1992 Rio Earth Summit adopted key principles for dealing with global environmental problems
2002 Johannesburg Earth Summit failed to deal with global environmental problems such as climate change, biodiversity loss, and poverty
2002 Johannesburg Earth Summit attempted to implement 1992 Rio summit policies and goals and reduce poverty
Fig. 24-10, p. 655
SOLUTIONS
International Environmental Treaties
Problems Solutions
Take a long time to develop and are weakened by requiring full consensus
Do not require full consensus among regulating parties
Poorly monitored and enforced
Establish procedures for monitoring and enforcement
Lack of funding for monitoring and enforcement
Increase funding for monitoring and enforcement
Treaties are not integrated with one another
Harmonize or integrate existing agreements
14-7 What Are Some Major Environmental Worldviews?
Concept 14-7 Major environmental worldviews differ over which is more important—human needs and wants, or the overall health of ecosystems and the biosphere; different worldviews include varying mixes of both priorities.
What Is an Environmental Worldview?
Environmental worldviews• Human-centered: anthropocentric• Life-centered: biocentric
Environmental ethics
Most People Have Human-Centered Environmental Worldviews
Two human-centered worldviews• Planetary management worldview• No-problem school• Free-market school• Spaceship-earth school
• Stewardship worldview
Some People Have Life-Centered and Earth-Centered Environmental Worldviews
Inherent or intrinsic value of all forms of life
Instrumental value of each species: potential economic value
Two earth-centered worldviews• Environmental wisdom worldview • Deep ecology worldview
Biosphere 2—Designed to Be a Self-Sustaining Life-Support System
Environmental Worldviews
Fig. 25-2, p. 662
■ Resources are limited and should not be wasted.
Environmental Wisdom
■ We are a part of and totally dependent on nature, and nature exists for all species.
■ We should encourage earth- sustaining forms of economic growth and discourage earth-degrading forms.
■ Our success depends on learning how nature sustains itself and integrating such lessons from nature into the ways we think and act.
Stewardship■ We have an ethical responsibility to be caring managers, or stewards, of the earth.■ We will probably not run out of resources, but they should not be wasted.
■ We should encourage environmentally beneficial forms of economic growth and discourage environmentally harmful forms.
■ Our success depends on how well we manage the earth's life- support systems for our benefit and for the rest of nature.
Stepped Art
Planetary Management
■ We are apart from the rest of nature and can manage nature to meet our increasing needs and wants.
■ Because of our ingenuity and technology, we will not run out of resources.
■ The potential for economic growth is essentially unlimited.■ Our success depends on how well we manage the earth's life- support systems mostly for our benefit.
<<<Describe one in a few sentences>>>
Fig. 25-3, p. 662
Biosphere- or Earth-centered
Ecosystem-centered
Biocentric (life-centered)
Anthropocentric (human-centered)
Planetary management
Instrumental values play bigger role
Intrinsic values play bigger roleSelf-centered
Stewardship
Environmental wisdom
The Earth Flag: Symbol of Commitment to Promoting Environmental Sustainability
14-8 How Can We Live More Sustainably?
Concept 14-8 We can live more sustainably by living more simply and lightly on the earth and by using certain guidelines to convert environmental literacy and concerns into action.
<<Two main things in section 14-8: Education & Incentive>>
We Can Become More Environmentally Literate (1)
Natural capital matters
Our threats to natural capital are immense and growing
Ecological and climate tipping points: irreversible and should never be crossed
We Can Become More Environmentally Literate (2)
Key goals for environmental literacy
Mitchell Thomashow: determine your ecological identity• Where do the things I consume come from?• What do I know about the place where I live?• Am I connected to the earth and other living
things?• What is my purpose and responsibility as a
human?
We Can Learn from the Earth
Formal environmental education
Ecological, aesthetic, and spiritual values of nature
Environmental words of wisdom• Stephen Jay Gould• Mahatma Gandhi
Major Components of Environmental Literacy
We Can Live More Simply and Lightly on the Earth
Voluntary simplicity (Ghandi – enough for everyone’s need, not everyone’s greed)• <<<Principle of simple living: Satisfied
mind>>>
Downshifters
Principle of enoughness, Mahatma Gandhi
Many religions teach simpler lifestyles
We Can Become Better Environmental Citizens (1)
Be environmentally informed
Evaluate and reduce environmentally harmful aspects of our lifestyle
Become politically involved
Fig. 25-7, p. 667
SOLUTIONSSome Guidelines for Living More Sustainably
Learn about, respect, and mimic how nature sustains itselfDo not degrade or deplete the earth's natural capital
Take no more from nature than what nature can replenish
Do not waste matter and energy resources
Protect biodiversity
Avoid climate-changing activities
Help maintain the earth's capacity for self-repair
Repair ecological damage that we have caused
Leave the world in as good a condition as we found or better
Cultivate a passion for sustaining all life and let this passion energize your actions
We Can Become Better Environmental Citizens (2)
Avoid these mental traps• Gloom-and-doom pessimism• Blind technological optimism• Paralysis by analysis• Faith in simple, easy answers
Good earthkeeping
Fig. 25-8, p. 669
Insulate your house and plug air leaks
Use renewable energy, especially wind and direct solar
Reduce meat consumption
Use energy-efficient heating and cooling systems, lights, and appliances
Buy locally grown food
Reduce, reuse, and recycle
Buy or grow organic food
Use water-saving appliances and irrigation methods
Don't use pesticides on your garden or lawn
Reduce car useWalk, bike, carpool, or take mass transit whenever possibleDrive an
energy-efficient vehicle
We Can Bring About a Sustainability Revolution during Your Lifetime (Valid?)
Environmental or sustainability revolution• Biodiversity protection • Commitment to eco-efficiency• Energy transformation• Pollution prevention• Emphasis on sufficiency• Demographic equilibrium• Economic and political transformation