Untitled Flashcards Set

Environmental Economics

A field that explores the intersection between economic activities and environmental health, focusing on how economies influence natural resources and ecosystems.

Polluter-Pays Principle

The concept that those who produce pollution should bear the costs of managing it to prevent environmental damage.

Greenwashing

A marketing strategy where companies misleadingly portray their products or practices as environmentally friendly.

Tragedy of the Commons

A situation in which individuals acting in their self-interest deplete a shared resource, ultimately harming the whole group.

Non-use Values

Economic values assigned to natural resources that are not directly consumed, such as existence value and bequest value.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Market Failure

A situation where the allocation of goods and services by a free market leads to inefficient outcomes, often failing to account for environmental costs.

Circular Economy

An economic model aimed at minimizing waste and maximizing resource efficiency by reusing and recycling materials.

Degrowth

A planned reduction in consumption and production, advocating for an economy that operates within ecological limits.

Gross Domestic Product (GDP)

The total market value of all goods and services produced in a country over a specific period, often used as a measure of economic growth.

Economy

All activities related to the production, distribution, and consumption of goods and services in a region.

Supply and Demand

The fundamental concepts in economics where demand refers to how much of a product is desired by consumers, and supply refers to how much of a product is available.

Technocentrism

An approach to environmental issues that emphasizes technological solutions to environmental problems.

Cost-Benefit Analysis

A method that compares the costs and benefits of a project or decision to evaluate its economic feasibility.

Externalities

Costs or benefits arising from an economic activity that affect third parties who are not directly involved in the transaction.

Behavioral Economics

The study of how psychological, social, cognitive, and emotional factors influence economic decisions.

Corporate Environmental Responsibility

The commitment by businesses to conduct their operations in a way that is environmentally sustainable.

Kuznets Curve

A theoretical model depicting the relationship between economic growth and environmental quality, suggesting that initially, growth leads to environmental degradation, but improves at higher income levels.

Ecosystem Services

The benefits that humans derive from ecosystems, including provisioning, regulating, cultural, and supporting services.

Resource Transfer Agreements

Deals wherein resource-depleted countries pay resource-rich countries to conserve their natural assets.

Cap-and-Trade System

A market-based approach to controlling pollution by providing economic incentives for reducing emissions.

Environmental Kuznets Curve

A model suggesting that economic development initially leads to environmental degradation, but can improve at higher levels of income.

Market-Based Policies

Policy instruments like taxes, subsidies, or trading schemes that use market signals to promote environmental sustainability.

Environmental Accounting

The practice of integrating environmental costs into the financial statements of a company to reflect the true economic impact of environmental policies.