ENVIRONMENTAL ECONOMICS

PRESENTED BY:PRESENTED BY:

Robert Hooke’s Robert Hooke’s TeamTeam

Taking the Taking the environment into environment into

account:account:GDP should be replaced or GDP should be replaced or

supplemented with supplemented with ENVIRONMENTAL ENVIRONMENTAL INDICATORSINDICATORS that include that include measures of the quality of life.measures of the quality of life.

- is a numerical value that helps - is a numerical value that helps provide insight into the state of provide insight into the state of the environment or human the environment or human health.health.

-are simple measures that tell us what is happening in the environment. - Since the environment is very complex, indicators provide a more practical and economical way to track the state of the environment than if we attempted to record every possible variable in the environment.

An example of an environmental indicator: Trend in global temperature anomalies of the last 150 years as an indicator of climate

change

Index of Sustainable Economic Welfare (ISEW)

- is an economic indicator intended to replace the gross domestic product. - rather than simply adding together all expenditures like the gross domestic product, consumer expenditure is balanced by such factors as income distribution and cost associated with pollution and other unsustainable costs.

Measures per capita GDP Measures per capita GDP adjusted foradjusted fordepletion of nonrenewable depletion of nonrenewable resourcesresources

loss of wetlandsloss of wetlandsloss of farmland due to erosion loss of farmland due to erosion and urbanizationand urbanization

the cost of air and water pollution the cost of air and water pollution and estimates of long term and estimates of long term environmental damage from environmental damage from ozone depletion and global ozone depletion and global warming.warming.

Human Development Human Development IndexIndex

Derived from 3 Derived from 3 components:components:life expectancylife expectancyLiteracyLiteracypurchasing powerpurchasing power

HUMAN DEVELOPMENT INDEX-is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries. - It is used to distinguish whether the country is a developed, a developing or an under-developed country, and also to measure the impact of economic policies on quality of life.

Life expectancy- is the expected (in the statistical sense) number of years of life remaining at a given age.Literacy- has traditionally been described as the ability to read for knowledge, write coherently and think critically about printed material.

Global adult literacy

World illiteracy halved between 1970 and 2005.

Purchasing power-is the number of goods/services that can be purchased with a unit of currency. -having money gives one the ability to "command" others' labor- to some extent it is the power over other people, to the extent that they are willing to trade their labor or goods for money or currency.

Regulation vs. Regulation vs. Market ForcesMarket Forces

Controlling/Controlling/preventing pollution preventing pollution and reducing waste and reducing waste does/will require does/will require government government intervention.intervention.

Possible Approaches in Possible Approaches in Government InterventionGovernment Intervention

RegulationsRegulationsLaws that set pollution standards, Laws that set pollution standards, establish penalties, ban the release establish penalties, ban the release of toxic chemical, and so on.of toxic chemical, and so on.

Expensive and time-consuming and Expensive and time-consuming and lead to conflict between lead to conflict between government, industry and government, industry and environmentalistsenvironmentalists

Industry often works to weaken Industry often works to weaken environmental laws and tries to environmental laws and tries to influence politicians to do so.influence politicians to do so.

PRESIDENTIAL DECREE NO. 1152[PHILIPPINE ENVIRONMENT CODE]

 Section 3Ambient Air Quality Standards  -There shall be established ambient air quality standards which shall prescribe the maximum concentration of air pollutants permissible in the atmosphere consistent with public health, safety and general welfare.

Section 4National Emission Standards  -There shall be established national emission standards for new and existing stationary and mobile sources of pollution which shall consider among others such factors as type of industry, practicable control technology available, location and land use, and the nature of pollutants emitted.

Section 6Standards for Noise-Producing Equipment-  There shall be established a standard for noise-producing equipment such as construction equipment, transportation equipment, stationary engines, and electrical or electronic equipment and such similar equipment or contrivances.Section 10

Vehicular Emission  -The Land Transportation Commission, in coordination with the National Pollution Control Commission, shall implement emission standards for vehicles and may deputize other appropriate law enforcement agencies for the purpose.  

R.A. 8550 – The Fisheries Code of the Philippines-defines the policies of the state in the protection, conservation and effective management of fisheries stock as well as identifying allowable fishing methods in Philippine coastal waters.

R.A. 9003 – The Solid Waste Management Act of 2001- an act providing for an ecological solid waste management program, creating the necessary institutional mechanisms and incentives, declaring certain acts prohibited and providing penalties, appropriating funds therefor, and for other purposes.

R.A. 9275- also known as the Philippine Clean Water Act of 2004 – an act providing a comprehensive water quality management and for other purposes.R.A. 9729 – also known as the Climate Change Act of 2009. - an act mainstreaming climate change into government policy formulations, establishing the framework strategy and program on climate change, creating for this purpose the climate change commission, and for other purposes. Republic Act 8435Agriculture and Fisheries Modernization Act of 1997Presidential Decree 1067The Water Code of the Philippines

ENVIRONMENTAL ECONOMICS

PRESENTED BY:PRESENTED BY:

Robert Hooke’s Robert Hooke’s TeamTeam

Ecotax - Ecological taxation

- refers to taxes intended to promote ecologically sustainable activities.- an example of Pigovian taxes, which are taxes that attempt to make the private parties involved feel the social burden of their actions.

Examples of ecotaxes which could be implemented or increased are:-Carbon taxes on the use of fossil fuels by greenhouse gases produced. -Duties on imported goods containing significant non-ecological energy input (to a level necessary to treat fairly local manufacturers)Severance taxes on the extraction of mineral, energy, and forestry products.-License fees for camping, hiking, fishing and hunting and associated equipment.-Waste disposal taxes and refundable fees.-Taxes on pollution and other hazardous wastes.

GREEN ECONOMY

– the central goal would be to make prices reflect true costs.

- At present, prices place an artificially low value on non-renewable natural resources and completely ignore external costs – to the air, the water, the soil, to future generations, to workers’ health.

Green TaxesGreen TaxesTaxes on each unit of Taxes on each unit of pollution discharged, each pollution discharged, each unit of pesticide used, each unit of pesticide used, each unit of fossil fuel used, each unit of fossil fuel used, each unit of solid waste produced, unit of solid waste produced, each unit of virgin resource each unit of virgin resource used, etc.used, etc.E.g., taxes in CFCs and E.g., taxes in CFCs and carboncarbon

-are excise taxes on environmental pollutants or on goods whose use produces such pollutants. -would include all the ‘true’ present and future costs of the resources used as well as the damage caused to the environment and human health at every stage of production, processing, distribution, consumption and disposal. -For economists its function is to ‘internalize’ costs now ‘externalized’. People and companies should be made to pay all the costs of their activities.- A pure environmental tax aims to ensure that polluters face the true cost of their activities by charging them for the damages caused to others.

Charging user fees Charging user fees -users pay -users pay fees to cover all costs for grazing fees to cover all costs for grazing livestock, extracting lumber and livestock, extracting lumber and minerals from public lands.minerals from public lands.

Ranchers pay a fee to graze their Ranchers pay a fee to graze their livestock on federal land. livestock on federal land. Generally, the fee is based on Generally, the fee is based on animal unit months (AUM)—the animal unit months (AUM)—the amount of forage that a cow and amount of forage that a cow and calf can eat in 1 month. calf can eat in 1 month.

Trading pollution rights-e.g. total limit set on emissions of a pollutant or use of a resource and total allocated among manufacturers or users by permit. Permits could be bought or traded.-Permit holders not using their entire allocation could use it as a credit against future expansion, use it in another part of their operation or sell it to other companies.

Emissions trading - is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

A coal power plant in

Germany. Due to emissions trading, coal

may become a less

competitive fuel than other

options.

GATT GATT --General Agreement on Tariffs and TradeGeneral Agreement on Tariffs and Trade-An attempt to lower tariff barriers to world -An attempt to lower tariff barriers to world

trade among members nationstrade among members nations- a set of rules agreed upon by nationsa set of rules agreed upon by nations- Signed 1947 and lasted until 1993.Signed 1947 and lasted until 1993. WTOWTO- World Trade Organization World Trade Organization - January 1, 1995 January 1, 1995 - that has power to enforce the agreement that has power to enforce the agreement

or an institutional bodyor an institutional body

4 Concepts

1. Most-favored-nation (MFN) treatment- if trade benefits are extended to one member by another, then they must be extended to all members. 2. National treatmenteach member is required to treat goods or service providers of other member states no less favorably than its own. 3. Regional trading groups (e.g. EU, NAFTA, ASEAN)- which are permitted to the extent that, as a whole, they do not discriminate against nations not belonging to the group. 4. Remedies- which may be imposed unilaterally when members are found to be in violation of a GATT obligation.

PROPONENTS of PROPONENTS of GATTGATT

Can allow consumers to buy Can allow consumers to buy more things at cheaper prices. more things at cheaper prices. . . Stimulating economic . . Stimulating economic growth in all countriesgrowth in all countries

CAN POTENTIALLY raise CAN POTENTIALLY raise overall global levels of overall global levels of environmental protection and environmental protection and worker health and safetyworker health and safety

OPPONENTS OF GATTOPPONENTS OF GATTWill increase the economic and Will increase the economic and

political power of multinational political power of multinational corporations and decrease the power corporations and decrease the power of small businesses, citizens and of small businesses, citizens and democracy elected governments democracy elected governments (nations not abiding by agreement (nations not abiding by agreement could be fined by WTO (which is could be fined by WTO (which is dominated by multinational dominated by multinational corporations)corporations)E.g., government bans on export or E.g., government bans on export or import of raw logsimport of raw logs

ENVIRONMENTAL GROUPSFounded 1970

Location New York, NY

Area served United States

Focus Environmentalism

Method Litigation, education, advocacy

Employees Approx. 350[

Members Over 1.2 million

Motto "The Earth's Best Defense"

Website nrdc.org

Natural Resources Defense Council NRDC uses law, science, and the

support of more than 400,000 members nationwide to protect the planet's wildlife and wild places and to ensure a safe and healthy environment for all living things.

- Uses legal action to protect environment-The NRDC works against urban sprawl, pollution, and habitat destruction, and promotes actions to mitigate global warming and increase the use of renewable energy. -It also sometimes files suit in federal court against corporations and government agencies for violations of the Clean Air Act, and the Clean Water Act. -Other operations carried out by the NRDC include public education and sponsorship of scientific studies.

DIFFERENT PROGRAMS

-Air/Energy Program-Health Program-International- Land Program -Nuclear Program-Urban Program -Water and Oceans Program -OnEarth

World’s largest

environmental group

The Rainbow Warrior

-Greenpeace is an independent global campaigning organization that acts to change attitudes and behavior, to protect and conserve the environment and to promote peace.- they believe that the struggle to preserve the future of our planet is not about us. It's about you. Greenpeace speaks for 2.8 million supporters worldwide, and encourages many millions more than that to take action every day.-"When the last tree is cut, the last river poisoned, and the last fish dead, we will discover that we can't eat money..."

MottoExplore, enjoy and protect the planet.

Formation 1892

Headquarters San Francisco, CA , USA

Membership 1,400,000

Exec. Dir. Michael Brune

Website sierraclub.org

-is the oldest, largest, and most influential grassroots environmental organization in the United States.

The Sierra Club's mission is:To explore, enjoy, and protect the wild places of the earth; To practice and promote the responsible use of the earth's ecosystems and resources; To educate and enlist humanity to protect and restore the quality of the natural and human environment; and to use all lawful means to carry out these objectives.

Founder(s) Paul Watson

Type 501(c)(3)

Founded 1977

LocationFriday Harbor, Washington, USAMelbourne, Victoria, Australia

Area served Global

Focus Marine conservation

Method Direct action

Website seashepherd.org

-it is a non-profit, marine conservation organization.-currently operates the vessels MY Steve Irwin, the Bob Barker, and the MV Brigitte Bardot, and most of the group's recent activities take place in international waters. The group has a strong focus on public relations to spread their message via the media.

-It has received support for its tactics against fishing, whaling, and seal hunting from quarters such as media personalities, while critics have called the direct action violent.

DIRECT METHODOperations have included scuttling and disabling whaling vessels at harbor-intervening in Canadian seal hunts-ramming other vessels-trying to temporarily blind or disorient whalers with a laser device-throwing bottles of foul-smelling butyric acid onto vessels at sea-boarding of whaling vessels while at sea-seizure and destruction of drift nets at sea. Some governments and organizations have referred to them as terrorists.

The Bob Barker and the Steve Irwin in port in Hobart,

Tasmania.

The Steve Irwin going up

river under Tower Bridge

in London Sept. 2011.

Founded 1951

Location Arlington, Virginia

Area served Global

Method Conservation by Design

Members Over 1 million

Motto"Protecting nature. Preserving life"

Website nature.org

-It is a US charitable environmental organization that works to preserve the plants, animals, and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive.

Nature Conservancy of Tennessee's William B. Clark, Sr., Nature Preserve on the Wolf River at Rossville, Tennessee.

Founder(s)Dave ForemanMike RoselleHowie Wolke

Founded 1980

Location Active in over 19 countries

Origins Southwestern United States

Focus Environmental protection

Method Direct action

MottoNo Compromise in the Defense of Mother Earth!

Website earthfirst.orgEARTH FIRST

Founder(s) Jay Norwood Darling

Founded 1936

LocationReston, Virginia United States

Area served United States

Focus Environmentalism

MethodEducation, training, research, lobbying

Members Over 4,000,000 [

Motto"To inspire Americans to protect wildlife for our children's future."

Website nwf.org

-is the United States' largest private, nonprofit conservation education and advocacy organization, with over four million members and supporters, and 47 state and territorial affiliated organizations. The NWF strives to remain "A national network of like-minded state and territorial groups, seeking balanced, common-sense solutions to environmental problems that work for wildlife and people.

- Its three main areas of focus are:1.connecting people to nature2.reversing global warming3.protecting and restoring critical wildlife habitats

ZERO POPULATION GROWTH

-is the ideal towards which countries and the whole world should aspire in the interests of accomplishing long-term environmental sustainability.

“Later, Longer, Fewer”-Slogan of the Initial Population

Control Program of China advocating (a) delayed marriage

and delayed child bearing, (b) longer periods between births and

(c) fewer and healthier births—eventually evolving into China’s

'One-Child Policy‘.

ANTI- ENVIRONMENTAL GROUPS Leaders of some corporations and Leaders of some corporations and

many people in positions of many people in positions of economic and political power see economic and political power see environmental laws and regulations environmental laws and regulations as threats to their wealth and poweras threats to their wealth and power

Examples of anti-environmental Examples of anti-environmental (wise use) groups:(wise use) groups: National wetlands coalition-real National wetlands coalition-real

estate developers and oil and gas estate developers and oil and gas companiescompanies

Alliance for America-timber, Alliance for America-timber, mining and cattle industriesmining and cattle industries

American Forest Resource AllianceAmerican Forest Resource Alliance Greening Earth Society-oil Greening Earth Society-oil

companiescompanies

The goal of The goal of “Wise Use”“Wise Use” groups is to ensure that groups is to ensure that certain special interests be certain special interests be allowed to pollute and allowed to pollute and exploit public resources for exploit public resources for private profit and private profit and specifically to:specifically to:Weaken the endangered Weaken the endangered species actspecies act

Eliminate restrictions on Eliminate restrictions on wetlands developmentwetlands development

Open parks, wildlife Open parks, wildlife refuges, and wilderness refuges, and wilderness areas to oil drilling, areas to oil drilling, mining.mining.

The EndThank

You! ^_^