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107 Cards in this Set
- Front
- Back
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usage =
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usage = (intensity)(pop)
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crude BR
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#B/1,000 ppl
controlled by: -women of age -fertility rate |
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crude DR
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#D / 1,000 ppl
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vital events
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birth
death |
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natural change in pop
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b's and d's
doesn't include migration |
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fertility rate
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avg # children born to avg woman in lifetime
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replacement rate
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fertility rate that exactly repleaces pop
better technology = closer to 2 (2.1 in US) |
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population momentum
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tendency of pop to grow beyond time that replacement fertility has been reached
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stage 1
demographic transition |
BR & DR high
pre industrial stable pop |
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stage 2
demographic transition |
drop in DR
BR same economic development growth in pop (food and medical technology decrease DR) |
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stage 3
demographic transition |
BR falls
(access to contraception, female education, urbanization, less value of children's work) pop growth slows |
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stage 4
demographic transition |
BR and DR Low
in balance |
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stage 5
demographic transition |
BR drops below replacement level
pop drops |
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dem transition
less developed v develeloped |
leess developed -- stage 2-3 takes 50yrs
developed stage 2-3 takes 150 yrs LD makes transition later LD spends more time in 3, BR is falling but takes longer |
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pop growth v agricultural growht
*pimentel* |
pop growth = geometric (exponential)
agriculture = arithematic |
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proposes
*pimentel* |
max pop = 200 mill to maintain current standard of living
reduced consumption change to sustainable practices max sustainable world pop = 1-2 bill |
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land resources
*pimentel* |
need .5 ha / person
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h2o resources
*pimentel* |
87% goes to agri
pollution decreases avail h2o |
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biological diversity
*pimentel* |
1/3 land allocated to maintain biomass
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energy
*pimentel* |
invest fossil fuel proceeds to find renewable energy
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importance of trade
*pimentel* |
get resources from other countries
(japan in trouble if can't import) |
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lomborg
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pop growht not a problem
technology will keep resources ahead of pop best way to slow growth = encourage development |
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pop growth + effecting econ growht
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as long as each person contributes something
as long as MARGINAL PRODUCT IS POSITIVE (then more people = more output) -MP higher than average product |
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output =
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output = (output/worker)(#workers)
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pop with rapid growth
(age structure effect) |
more young people
"youth effect" (abundance of young people too young to work_) less female availabitily for work force lowered % of pop in work force === lower econ growth per capita |
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pop with slow growth
(age structure effect) |
less young people
"retirement effect" (large number of people past 65) "female availability effect" -fewer children to care for.... more women available to join labor force |
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developing countries
(age structure effect) |
experience "youth effect" & "retirement effect" simultaneously
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law of diminishing marginal productivity
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- effect of pop growth on econ growth
*presence of fixed factor* -larger additions of variable force (like labor) lead to decline in marginal productivity ---incrases in labor eventually drive marginal product down when MP falls below avg product -- per capita income declines with more pop growth |
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argument for pop increasing per capita growth
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-technology
-economies of scale (more input = more output) |
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slower pop growth
nat'l resource council finds |
raises capital / worker
thus raising productivity / worker 2. doesn't usually result in reduced productivity |
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pop density and economies of scale
nat'l resource council |
not significantly related
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rapid pop growth
nat'l resource council |
puts more pressure on resources
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BR doesn't account for
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age structure
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BR 2 components
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people of childbearing age
total fertility rate |
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stationary population
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BR = DR
(age and sex specific) growth = 0 *due to fertility rate being = to replacement rate* |
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remidies for when social and private diverge ((-) ext)
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1. private resolution thru negotiation
2. the courts (property rules / liability rules) 3. legeslative /executive regulation |
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private resolution thru negotiation
(when social and private diverge) |
small number of parties
damaged offers bribe |
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the courts - property rules
(when social and private diverge) |
specify initial allocation of entitlement
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the courts - coase
(when social and private diverge) |
court allocates entitlement to either party (ie right to pollute river or right to pretty river) - getting efficient allocation
when negotiation costs are small and number of parties is small changes distribution of costs / benefits so whoever has property right can bribe the other RESULTING IN EFFICIENT LEVEL OF PRODUCTION -resort has property right = firm compensates for all damages -firm has property right = bribe to reduce damage |
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problems with coase
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zero wealth assumption (wealth doesn't matter)
other polluters might increase pollution in order to receive bribe large number = negotiation too difficult |
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the courts - liability rules
(when social and private diverge) |
rules that award monetary damage to parties
firm max NB by choosing Q* |
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problem with liability rules
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relies on case by case determination (expensive)
transaction costs |
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legeslative / executive decision
(when social and private diverge) |
emission standard
zoning laws require pollution control equp |
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residual
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the leftover when firm produces products
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options for decreasing residual
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produce less output
recycle |
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damage costs
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externalities
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control costs
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not externalities -- internalized
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internalize MD
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tax / charge
--polluter paying marginal social damage -- so pollution costs are internalized ----polluter chooses the cost-minimizing choice |
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determining cost-effective allocation of 2 emitters
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where MC are equal
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command-and-control approach
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emissions standard
problem: authorities don't always assign e-standards in cost-minimizing way for the 2 firms |
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emissions charge
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fee for each unit of emission
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total payment
(with emissions charge) |
total payment = (fee)(E level)
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firm chooses level where...
(with emissions charge) |
tax = MAC curve
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tax better than emissions standard
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when 2 firms, each would control emissions until MC = tax...
each firm chooses the COST MINIMIZING LEVEL stimulates technological development |
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problem with tax
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not always right (efficient) amt
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command-and-control
setting an emissions standard |
establish air quality standards (set ceiling on emissions)
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"curse of natural resources"
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countries with more natural resources grow slower
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curse may be misleading due to bias
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another variable affects growth (like geography)
--not apparent |
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explanation of curse
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natural resources crowd out activity X
activity X drives growth thus natural resources harm growth |
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X is traded manufacturing activities
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natural resources increase demand for non-traded items
non-traded prices go up costs / wages go up profits no longer in trading activities manufacturing declines --stops growth **resource abundance leads to uncompetitive export sectors --thus export led growth never succeeded* |
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X is education
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natural resouce profits are concentrated
gov't tempted to rent seek (using resources to increase profits) ... rather than pursuing pro-growht activity leading to less innovation, less activity, decreased growth |
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"current reserves"
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known resources
that can be extracted at current prices |
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"potential reserves"
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availability depends on price ppl are willing to pay
higher WTP = larger available reserves |
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"resource endowment"
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natural occuring resources in earth's crust
price has nothing to do with size --- geologic concept |
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"recovery factor"
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portion of resource base thats economic
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reserve base
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all of identified economic and subeconomic
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from economic to subeconomic
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increase price to extract
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from identified to undiscovered
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increasing geologic uncertainty about size of resource base
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potential, current, and endowment...
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current reserves < max potential reserves
potential reserves < entire resource endowment (people never be willing to pay price high enough to extract the most expensive minerals) |
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increased price of depletable resource
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stimulates economic replenishment
stimulate technological progress |
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depletion rate of resource depends on
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demand
durability of products |
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MUC
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oppotunity cost of future net benefits that are goregone
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MUC and Q with finite resources
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MUC increases over time
Q consumed decreases over time |
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with no substitues
total MC ceiling |
Max willingness to pay decides max total marginal cost
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with a substitute
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total MC for first resource never exceeds the cost of the substitute
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with substitute
ceiling of of total MC |
the MC of extracting the substitute
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switch to substitute
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when TMC 1 = TMC 2
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survivorship curve: developed
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)
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survivorship curve undeveloped
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(
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decentralized
correcting market failure |
liability
coase (small groups) |
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middle
correcting market failure |
tax
subsidy |
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centralized
correcting market failure |
command and control (emissions standard)
(large groups) |
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tax and subsidy alike
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give cost min-level
though not necessarily efficient (need MD curve to know efficiency) |
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total payment
(with tax) |
tax + TAC
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set the tax
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where MAC = MD
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tax rate sets
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price for pollution
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tax rate too high
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too little pollution
too much abatement |
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tax rate too low
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too much pollution
too little abatement |
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prob with e standard
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no incentive to pollute less than the standard
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emissions standard payment
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no payment of taxes
no payment for damages |
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marginal product of labor
increased technology |
can have more people with higher income / person
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downslope of marginal product of labor
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additional person generates less than the last... dragging the average down... decreased income /person.... decreased standard of living)
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technology growth > pop growth
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increased standard of living
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technology and abatement
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increased technology = cheaper to abate
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survivor bias
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when looking at contries you only see the ones that were successful
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total resource constraint 10
@ DR = 0 |
(5, 5)
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@ dicount rate 100%
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1st year Q*
2nd = whatever leftover |
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causes of natural resource curse
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-difficult to start non-nat resource business
-exchange rate shifts .. inexpensive to import -exchange rate shifts .. expensive to export |
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decrease 1st yr extraction
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smaller DR
greater intercept of MB curve increase in slope of MB curve increase in MC |
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pimental and malthus
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malthus beleived pop growth was trap for nations seeking to develop
pimental brings this argument today suggestibg optimum global pop is 2 bill |
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countries experiencing decline in growth ...
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rise in avg age of population
increases % of pop in labor force increased income per capita growth |
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technological progress prevents econ from shrinking
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allows escape from law of diminishing marginal productivity..... allows more people to be added that still increase productivity (marginal product of next unit is above average marginal product)
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increased population preventing econ from shrinking
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economies of scale
increases in input lead to increases in output pop growth, increases demand for output... allows economies of scale to happen |
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depletable resource extracted at constant MC
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Q* declines over time
available resources eventually used up -- MUC rises over time |
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depletable resource with increasing MC
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Q extracted declines over time
MUC declines over time total amt extracted is less than available supply |
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exploration and nat resource reserves
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exploration expands reserve size
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technological progress and resource reserves
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keeps MC of extraction from rising as much
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