Sustainability, Economics, and Equity: Meeting Present Needs without Compromising the Future

1. Chapter 20 Sustainability, Economics, and Equity Quote of the chapter: “Leave the world better than you found it, take no more than you need, try not to harm life or the environment, and make amends if you do.” ~Paul Hawken, author of Natural Capitalism

2. Sustainability, Economics, and Equity • Ciudad Juarez, Mexico • 1994 – US, Canada, and Mexico passed the North American Free Trade Agreement (NAGTA) • Intended to increase trade by reducing tariffs/other taxes and regulations • Negative consequences: • Industrial pollution • Poor working conditions • Discrimination • Questions of social justice • Point of story?

3. Sustainability • Sustainability – meeting the needs of the present generation without compromising the ability of future generations to meet their own needs • Newer concept • Basic needs include – • Well being – status of being healthy, happy and prosperous

4. Economics • Economics – examines how humans either as individuals or as companies allocate scarce resources in the production, distribution and consumption of goods and services

5. Supply, Demand and the Market • Most economies are market economies • Market – occurs whenever people engage in trade • Cost of good is determined by supply and demand

6. Supply • Supply curve (s) - shows how many units that suppliers of a given product or service are willing to supply • Factors that influence supply –

7. Demand • Demand curve (D) - shows how much of a good consumers want to buy. • Factors that determine demand - • Slopes downwards because as the price of the good rises, the demand declines

8. The Law of Supply • Law of supply – when the price of a good rises, the quantity supplied of that good will rise and when the price of a good falls, the quantity of the good supplied will also fall

9. The Law of Demand • Law of demand – when the price of good rises, the quantity demanded falls and when the price falls, demand rises

10. Equilibrium • When the price of a good comes to an equilibrium point and the two curves (S and D) intersect on the graph • At this price, suppliers find it worthwhile to supply exactly as many of the product as consumers are willing to buy.

11. Externalities • Externalities - costs/impact of a good or service on people and the environment not included in the economic price of that good or service • Ex. costs of using common resources such:

12. Supply and Demand with Externalities

13. Wealth and Productivity • GDP (gross domestic product) - the value of all products and services produced in a year in a given country • Includes 4 types of spending: • Does not reflect externalities such as pollution • GPI (genuine progress indicator) - attempts to address this shortcoming

14. GPI vs. GDP in US from 1950-2004

15. Kuznets Curve

16. Microlending • Practice of loaning small amounts of money to people who intend to start a small business in less developed countries

17. Terminology • Natural capital – resources of the planet • Human capital – • Manufactured capital – all goods and services that humans produce • Market failure – • Environmental economics – examines the costs and benefits of various policies and regulations that seek to regulate or limit air and water pollution and other causes of environmental degradation • Ecological economics – • Valuation – assigning monetary value to intangible benefits and natural capital

18. Systems Diagrams:Two Economic Systems

19. Cradle to Cradle System

20. Environmental Worldviews Important to policies a nation considers and how it implements them: • Anthropocentric - human-centered • Stewardship • Biocentric - life-centered • Variety of positions • Ecocentric - Earth-centered • Various forms

21. World Agencies • United Nations (UN) • United Nations Environment Program (UNEP) • The World Bank • The World Health Organization (WHO) • The United Nations Development Program (UNDP)

22. United States Agencies • The Environmental Protection Agency (EPA) • The Occupational Safety and Health Administration (OSHA) • The Department of Energy (DOE)

23. Several Approaches to Measuring and Achieving Sustainability • Human development index (HDI) – combines 3 basic measures of human status: • life expectancy • knowledge and education • individual purchasing power • Human poverty index (HPI) – measures 3 things:

24. US Policies Overview

25. Deterrents and Incentives • Strategies used by US to protect environment, promote human safety/welfare and (in some cases) internalize externalities: • Command and control • Incentive based approach • Green tax

26. Triple Bottom Line

27. Two Major Challenges of our Time: • Reducing poverty • Stewarding the environment (environmental justice)

28. Millennium Development Goals(Poverty and Inequity) • Eradicate extreme poverty and hunger • Achieve universal primary education • Promote gender equality and empower women • Reduce child mortality • Improve maternal health • Combat HIV/AIDS, malaria, and other diseases • Ensure environmental sustainability • Develop a global partnership for development • 2013 report: http://www.un.org/millenniumgoals/pdf/report-2013/mdg-report-2013-english.pdf

29. Environmental Justice • Inequitable distribution of pollution and of environmental degradation with their adverse effects on humans and ecosystems • People that are of lower incomes and minorities that have a disproportionate exposure to environmental hazards • Can they not afford to get away? Or • Do industries move here because no one will complain?

30. Story of Change • https://www.youtube.com/watch?v=oIQdYXCKUv0