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40 Cards in this Set

  • Front
  • Back
rapid decline in
-quality of life
-political structure (social complexity)
8 triggers of collapse
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
4 CAUSES of collapse
1- human caused climate change

2- pollution

3- energy shortage

4- full utilization of photosynthetic capacity

5 factors leading to collapse
1- enviro dammage

2- climate change

3- hostile neighbors

4- friendly neighbors

5- society's response (ALWAYS factor)
free markets good bc...
guranties efficiency

--optimum quantity at optimum price
market failure
no longer Optimum Q and Optimum P
the amount of natural resources available

(varies w perspective)
renewable resource
stock that replenishes itself

can be used indefinitely
non-renewable resource
stock that can't replenish itself within reasonable period of time
using a natural resource at a rate that leaves the stock available
good thats easily traded and stored

commodities are in perfectly competitive markets

commodity is a natural resource if primary activities are extrraction and purification
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
factors that affect Demand
1- income

2- price of substitues

3- price of compliments
normal goods

affecting demand
income increase = demand increase
inferior goods

affecting demand
income increase = decrease in demand
enviro quality and natural resources

-- what kind of good?

increase in income = increase in demand

affecting demand
increase in P of coke =

increase in Demand of pepsi

affecting demand
decrease in P of jelly =

increase in Demand of Peanut Butter
change in price of good ...

affect on Demand
decrease price of good

= shift down demand curve

(greater Q of good demanded)
marginal WTP
how much WTP for one additional unit

-- height of WTP curve at that Q
problem w WTP
increased income = increased WTP

-- it includes the measure of ability to pay
--- preferences are slanted toward the rich
contingent valuation
primary non-market valuation technique
non-market valuation
putting a value (in $) on a good / service not bought or sold
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)
non-credible responses in CV
1- altruism

2- warm glow

3- violates reasonable bids

4- embedding effect
altruism in CV
including other ppl's benefits in your willingness to pay

--> over valuing the asset -- someone's benefit is counted twice
warm glow in CV
positive feeling of doing something good
embedding effect CV
anything that causes the question to give you a sense of value
diamond and hausman's alternatives to CV
-use 0


-use panel of experts
types of market failure
1- negative externalities

2- common property resource

3- positive externality

4- public good
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)
common property resource

leading to market failure
-a resource that can be used w/o paying for
-but use of good effects others use (fishery) so NOT public good

-resources used above efficient level

-"tragedy of the commons"

- 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
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
public good

leading to market ailure
-type of (+) externality

-can be supplied by gov't or private agents

**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
the larger the discount rate
the more you extract in the first year
weak sustainability
resource use by this generation should not make future generations worse off
strong sustainability
the VALUE of the remaining stock of natural capital should not decline
environmental sustainability
the flow of natural capital shouldn't decrease
hartwick rule
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
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]