The Environment and Development

1. The Environment and Development Chapter 10

2. Group members • ZAHEER U DIN QADIR • MUHAMMAD SUFIAN • BILAL NAZIR QADRI • ASAD • NADEEM ASHRAF • AYESHA AKHTAR

3. 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

4. Environment and Development: The Basic Issues • Sustainable development and environmental accounting

5. Environment and Development: The Basic Issues Sustainable net national product is: Where NNI* is sustainable national income GNI is Gross national income Dm is the depreciation of manufactured capital assets Dn is the depreciation of environmental capital

6. Environment and Development: The Basic Issues Alternatively, sustainable net national product is: Where NNI*, GNI, Dm, and Dn are as before R is expenditure needed to restore environmental capital A is expenditure required to avert destruction of environmental capital

7. 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

8. Environment and Development: The Basic Issues (cont’d) • Urban development and the environment • The global environment

9. The Scope of Environmental Degradation: A Brief Statistical Review • Environmental problems have consequences both for health and productivity

10. Table 10.1

11. Table 10.1 (cont’d)

12. Rural Development and the Environment: A Tale of Two Villages • Representative African village • Representative South American village

13. Traditional Economic Models of the Environment • Privately owned resources

14. Figure 10.1

15. Figure 10.2

16. Traditional Economic Models of the Environment • Privately owned resources • Common property resources

17. Figure 10.3

18. 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

19. Figure 10.4

20. Urban Development and the Environment • The ecology of urban slums • Industrialization and urban air pollution

21. Figure 10.6

22. 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

23. 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

24. 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

25. 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

26. Policy Options in Developing and Developed Countries (cont’d) • How developed countries can help LDCs • Trade policies • Debt relief and debt for nature swaps • Development assistance • What developed countries can do • Emissions controls • R&D • Import restrictions

27. Table 10.2