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40 Cards in this Set
- Front
- Back
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"collapse"
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rapid decline in
-population -economy -quality of life -political structure (social complexity) |
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8 triggers of collapse
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1- soil problems
2- water management 3- over hunting 4- over fishing 5- deforestation / habitat destruction 6- population growth 7- bigger eco footprint / larger impact 8- invasive species |
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4 CAUSES of collapse
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1- human caused climate change
2- pollution 3- energy shortage 4- full utilization of photosynthetic capacity **globalization |
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5 factors leading to collapse
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1- enviro dammage
2- climate change 3- hostile neighbors 4- friendly neighbors 5- society's response (ALWAYS factor) |
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free markets good bc...
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guranties efficiency
--optimum quantity at optimum price |
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market failure
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no longer Optimum Q and Optimum P
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"stock"
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the amount of natural resources available
(varies w perspective) |
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renewable resource
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stock that replenishes itself
can be used indefinitely |
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non-renewable resource
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stock that can't replenish itself within reasonable period of time
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"sustainability"
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using a natural resource at a rate that leaves the stock available
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"commodity"
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good thats easily traded and stored
commodities are in perfectly competitive markets commodity is a natural resource if primary activities are extrraction and purification |
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conditions of a
perfectly competitive market |
1- large number of firms
2- no barriers to entry (--> (-) feedback loop) 3- perfect info 4- large # of buyers 5- equal access to resources |
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factors that affect Demand
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1- income
2- price of substitues 3- price of compliments |
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normal goods
affecting demand |
income increase = demand increase
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inferior goods
affecting demand |
income increase = decrease in demand
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enviro quality and natural resources
-- what kind of good? |
NORMAL GOOD
increase in income = increase in demand |
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substitutes
affecting demand |
increase in P of coke =
increase in Demand of pepsi |
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compliments
affecting demand |
decrease in P of jelly =
increase in Demand of Peanut Butter |
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change in price of good ...
affect on Demand |
decrease price of good
= shift down demand curve (greater Q of good demanded) |
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marginal WTP
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how much WTP for one additional unit
-- height of WTP curve at that Q |
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problem w WTP
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increased income = increased WTP
-- it includes the measure of ability to pay --- preferences are slanted toward the rich |
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contingent valuation
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primary non-market valuation technique
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non-market valuation
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putting a value (in $) on a good / service not bought or sold
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diamond and hausman
on contingent valuation |
you can't get enough info for CV so it shouldn't be used for CB analysis
-evidence of non-credible responses -implications of non-credible responses (doesn't accurately measure your preferences) |
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non-credible responses in CV
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1- altruism
2- warm glow 3- violates reasonable bids 4- embedding effect |
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altruism in CV
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including other ppl's benefits in your willingness to pay
--> over valuing the asset -- someone's benefit is counted twice |
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warm glow in CV
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positive feeling of doing something good
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embedding effect CV
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anything that causes the question to give you a sense of value
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diamond and hausman's alternatives to CV
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-use 0
or -use panel of experts |
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types of market failure
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1- negative externalities
2- common property resource 3- positive externality 4- public good |
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negative externalities
lead to market failure |
-there are some costs the agent doesn't pay
-the social marginal cost is greater than the private marginal cost (the space between two MC lines = size of externality) **market Q is > than efficient Q **market price is < efficient price (when no externality the private and social MC are the same line) |
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common property resource
leading to market failure |
-a resource that can be used w/o paying for
-*non-excludable* -but use of good effects others use (fishery) so NOT public good PROB: -resources used above efficient level -"tragedy of the commons" ON GRAPH: - after peak, more boats aren't catching many - increased effort = harder to catch fish leads to: -if open access and high demand -- resources over-exploited -when resource over-exploited, scarcity rent is lost |
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positive externality
leading to market failure |
-external benefits an agent doesn't receive
- the social M - WTP (d) is greater than the private M-WTP (d) -space between social and private = what society receives from your willingness to pay market Q < efficient Q market P < efficient P |
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public good
leading to market ailure |
-type of (+) externality
-can be supplied by gov't or private agents **non-excludable **non-rival (one's consumption doesn't effect another's) --> free rider prob -incentive to understate your WTP --can't stop you from using the good |
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the larger the discount rate
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the more you extract in the first year
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weak sustainability
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resource use by this generation should not make future generations worse off
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strong sustainability
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the VALUE of the remaining stock of natural capital should not decline
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environmental sustainability
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the flow of natural capital shouldn't decrease
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hartwick rule
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if you re-invest the scarcity rent then the current level of resource use can be maintained
*meets all 3 types of sustainability prob: can't control what ppl reinvest |
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capacity for change...
why did our pace of change shift? -from WorldWatchInst. |
1- solution dividend
[additional solutions came from 1st solution] 2-technical to cultural [used tools for artistic expression, not just technical use... can increase ability to travel around world] 3- magnifying the world [travel, sharing culture easier, sharing across space and time, breakthrus can be passed down] |
