Economics, Policy, and the Future

1. Economics, Policy, and the Future Chapter 21

2. Sustainability • People are living longer and are more educated than 100 years ago • Disagreements over whether environmental problems are happening or not • In the end, the world is looking for sustainability

3. Sustainability • The condition in which human needs are met in such a way that a human population can survive indefinitely • What would it take for you to remain sustainable?

4. International Development and Cooperation • This is a time of globalization • Where people can move to other countries in search of better economics

5. Concern of Sustainability? • Because: • People live differently and use more resources • The human population is growing • People are more educated

6. Difficulties with Binding International Agreements? • Governments do not agree on how to solve environmental problems • Governments don’t agree on who is responsible for: • Causing the problems • Paying to solve them

7. International Organizations, Meetings and Agreements • World Conservation Union (IUCN) – 1948 • 140 countries united for equitable and sustainable use of natural resources • UN Conference on Human Environment – Stockholm – 1972 • First meeting to discuss global environmental problems – led to UN Environmental Program

8. International Organizations, Meetings, and Agreements • UN Conference on Environment and Development (UNCED or Earth Summit) – Rio de Janeiro – 1992 • Produced Agenda 21 and the Rio Declaration to outline key policies for sustainable development • World Summit on Sustainable Development – Johannesburg – 2002 • Meeting to discuss progress of Agenda 21

9. International Organizations, Meetings, and Agreements • Intergovernmental Panel on Climate Change (IPEC) – 1988 • Group of scientists studying human-induced climate change • Framework Convention on Climate Change – Rio de Janeiro – 1992 • Recognition and proposal of ways to deal with Greenhouse Gases

10. Montreal Protocol • Where agreements were made about CFC’s

11. International Organizations, Meetings, and Agreements • Kyoto Protocol on Climate Change – 1997 • Agreement to reduce worldwide emissions of greenhouse gases • Requires larger reduction by developed countries • Allows trading of permitted levels of emissions • Promotes pollution-free development

12. Other International Organizations, Meetings, and Agreements Related to the Environment • Antarctic Treaty and Convention – 1959 – Everyone shares Antarctica for peaceful purposes • International Convention for the Prevention of Pollution from Ships (MARPOL) – 1973 • Convention on International Trade in Endangered Species (CITES) – 1973 (classifies worldwide endangered species) • Convention on Migratory Species (CMS), 1979 – Protects species that cross borders • Laws of the Sea – 1982 – Pollution into oceans that are owned by no country • Basel Convention – 1989 – regulation and transportation of hazardous wastes • Intergovernmental Forum on Chemical Safety (IFCS) – 1994 – international cooperation in use and disposal of chemicals • Cartagena Protocol on Biosafety – 2000 – transportation and use of genetically modified organisms • UN Forum on Forests (UNFF) – 2001 – management, conservation, and sustainable development of all types of forests

13. Convention on Biological Diversity • Where agreements were made to protect endangered and threatened species

14. Economics • Economics is the study of the choices people make as they use and distribute limited resources • Economic Growth – an increase in the flow of money and products within a market • Market Failures – The market fails if the price of something does not reflect its true cost • Economic Incentives – paying out money for actions that benefit society or charging taxes on actions that have a social cost

15. Market Failures • An economists’ view of environmental problems

16. Raised Prices due to Pollution Tax • NO • The tax should be paid by the manufacturer making the profit • Consumers can only buy what manufacturers make • Manufacturers have the power, they should pay to pollute

17. Raised Prices due to Pollution Tax • YES • Manufacturers only produce products that are in demand by consumers • This demand makes consumers partly responsible • Raising prices encourages consumers to switch to products with lower pollution costs

18. What are some difficulties of limiting whale harvesting? • There are loopholes in the regulations that countries are using to opt out of IWC rules

19. History of US Policy • 1800’s • Ancient Forests cut down • Plains Farmed • 8 Species hunted to extinction • No one realized the consequences of these actions until the 1900’s

20. John Muir • The pioneer of environmental preservation • Worked along side Teddy Roosevelt • Established first national parks

21. Drought and Soil Erosion of 1930’s • An event that demonstrated the need for new soil conservation practices and policies

22. US Environmental Federal Agencies • Environmental Protection Agency • Department of Interior: • US Fish and Wildlife Service • Bureau of Land Management • National Parks Service • Office of Surface Mining Reclamation and Enforcement • Department of Agriculture • Department of Commerce: • National Oceanic and Atmospheric Administration • National Marine Fisheries Service • Nuclear Regulatory Commission • Department of Energy

23. Environmental Protection in Developing Countries • Developing countries struggle to provide the basic necessities – Food and Water – to growing populations • They lack additional resources for environmental protection

24. Environmental Protection in Developed Countries • Using the United States as an example: • Citizens and politicians often disagree over the need for: • Economic growth • Environmental protection • Difference in opinion over urgency of certain environmental problems • What’s important to you may not be important to me

25. EPA • Environmental Protection Agency • US agency that monitors air and water quality

26. Environmental Impact Statement • A study that accesses the environmental effects of a project or policy

27. Limits of the Federal Government to pass environmental laws • Fed government must provide funding for any new laws that cost more than $50 million to implement • Federal agencies must evaluate both the economic and environmental impact of their policies and projects • These laws help the government but hurt the state

28. Limits of the Federal Government to pass environmental laws • State and local governments must allocate their budgets carefully • Unlikely to invest in costly environmental projects unless forced to do so • Difficult to place a value on external factors, such as air quality • Easy to place value on economic factors, such as job creation

29. Limits of the Federal Government to pass environmental laws • Forcing Federal agencies to evaluate both economic and environment impacts gives an unfair emphasis on economic considerations

30. Why work on Local Government • If you wanted to convince your elected leaders that steps should be taken to reduce soil erosion along the bank of the creek that runs through your neighborhood

31. Lobbying • An organized attempt to influence the decisions of lawmakers

32. People who influenced environmental thinking • H. Thoreau – writing – cabin at Walden Pond, MA • J. Muir – Founder of Sierra Club • T. Roosevelt – 1st President to support conservation • R. Carson – Silent Spring • P. Ehrlich – warned of rapid population growth through The Population Bomb • J. Goodall – chimpanzees • M. Stoddart – Author who’s efforts were to save the Nashua River in MA from pollution • J. Cousteau – Marine Ecology • G. Hardin – human ecology – “Tragedy of the Commons”

33. Alice Hamilton • The woman who pioneered the study of environmental impact on health

34. Applying Your Knowledge • What can you now do with the education you gained from taking this class?

35. Projects that NEED Environmental Impact Statements • Building a new airport • Building a new dam • Building a new highway

36. Evaluation of Environmental Sources • You should evaluate environmental sources for: • Bias • Accuracy

37. Voting • An action that allows individuals to affect environmental policy at ALL levels of government

38. Land Donation for Preserve • An example of private effort to address environmental problems

39. How make people comply to environmental regulations? • Governments offer two approaches • The first is to fine anyone who violates the law • Negative approach, but effective • The second is to offer incentives to anyone who volunteers • Positive approach to compliance with the law