Environmental Economics and Sustainability Concepts

Conventional Model

Views the economy as self-contained with resources flowing in and waste flowing out, largely ignoring environmental limits.

Ecological Model

Embeds the economy within the environment, recognizing the finite nature of natural resources and the need for sustainable resource use.

Fundamental Difference

The conventional model treats the environment as external; the ecological model sees the economy as entirely dependent on the environment.

GDP

Measures total economic output, but it does not account for negative externalities (e.g., pollution), inequality, or the depletion of natural resources.

NNP (Net National Product)

Subtracts depreciation of capital and natural resources from GDP to show sustainable income.

GPI (Genuine Progress Indicator)

Adjusts for income distribution, adds value of household and volunteer work, and subtracts costs of crime, pollution, and loss of natural capital.

Produced Capital

Physical assets like machinery, buildings, and infrastructure.

Natural Capital

Resources from the Earth—forests, water, minerals, clean air.

Intangible Capital

Human and social assets like education, trust, and legal systems.

Take-Make-Waste

Linear system that extracts resources, produces goods, then disposes of waste—unsustainable.

Borrow-Use-Return

Circular system inspired by natural cycles—resources are borrowed from nature and returned in usable forms.

Industrial Ecology

Models production like ecosystems—waste from one process becomes input for another.

Tragedy of the Commons

A concept describing how individuals, acting in their own self-interest, overuse and deplete shared resources (commons), leading to resource collapse.

Limiting Freedom of Access

By implementing regulations or assigning property rights, we can manage resource use—examples include fishing quotas, permits, or community management plans.

Fish Down the Food Chain

Refers to the practice of targeting smaller, lower-trophic-level species as larger, top predators are overfished.

Catch Shares

Allocate a specific share of the total allowable catch to individuals or groups, giving them a vested interest in long-term sustainability.

Marine Reserves

No-take zones where fishing is banned allow ecosystems to recover and replenish surrounding areas through spillover.

Primary Fossil Fuels

Coal, oil (petroleum), and natural gas. Together, they supply about 80% of U.S. energy.

Peak Oil

The point when global oil production reaches its maximum and then declines.

Hubbert Curve

Models the rise, peak, and fall of oil production.

Trends in Oil

Oil discoveries are declining, and consumption continues.

Peak oil

Rising prices, supply shortages, and a pressing need for alternative energy.

Oil sands and shale extraction problems

Requires vast energy and water, emits more greenhouse gases than conventional oil, and can devastate local ecosystems. Economically costly, especially when oil prices fall.

Hydraulic fracturing (fracking) environmental problems

Risk of groundwater contamination, induced seismic activity (earthquakes), methane leakage (a potent greenhouse gas), and habitat disruption.

Coal surface mining and mountaintop removal issues

Habitat destruction, water pollution from runoff (e.g., heavy metals), air pollution (particulates and mercury), and altered landscapes.

Nuclear power problems

Risk of catastrophic accidents (e.g., Chernobyl, Fukushima), radioactive waste storage issues, high initial construction costs, and long decommissioning periods. But it's low-carbon.

Radioactive half-life

Time it takes for half of a radioactive substance to decay. Example: If a substance has a half-life of 10 years, after 30 years (3 half-lives), only 12.5% remains.

Long-term nuclear waste containment problems

Waste remains hazardous for thousands of years. Safe long-term storage is difficult—requires geological stability, political will, and public trust (e.g., Yucca Mountain controversy).

Intermittency in solar energy

Solar energy isn't constant—depends on weather and time of day.

Storage in solar energy

Requires efficient batteries to store excess energy.

Cost and Infrastructure in solar energy

High initial costs for installation and materials; integrating solar into existing grids can be challenging.

Wind power harvesting locations

Harvested in areas with consistent wind: Great Plains (U.S.), offshore locations, and parts of Europe and China.

Future potential of wind power

Future potential is strong—offshore wind, in particular, offers vast untapped capacity. Wind could supply a major share of global energy with proper investment.

Biomass conversion methods

Through combustion, fermentation (to ethanol), or anaerobic digestion (to biogas).

Environmental impacts of biomass

Can reduce waste and be carbon-neutral, but growing dedicated biomass crops may cause deforestation, water use, and competition with food crops.

Biofuels for transportation

Ethanol (from corn/sugarcane), biodiesel (from vegetable oil/animal fat), and biogas.

U.S. biofuel blending

The U.S. already blends ethanol with gasoline. While it reduces oil dependence, challenges include energy input, land use, and limited net emissions reductions from corn ethanol.

Lithium fuel cells

Likely refers to lithium-ion batteries, not 'fuel cells.' They store energy chemically and release it through electrochemical reactions.

Lithium-ion batteries in vehicles

Used in EVs (like Tesla). R&D focuses on increasing range, decreasing charge time, and improving recyclability and resource sourcing (e.g., lithium, cobalt).

Geothermal energy

Comes from heat within the Earth.

Direct use of geothermal energy

Heat buildings or greenhouses by tapping into hot water reservoirs.

Electricity generation from geothermal energy

Uses steam from deep wells to turn turbines.

Point sources of pollutants

Single, identifiable sources—like a pipe discharging wastewater from a factory.

Non-point sources of pollutants

Diffuse, harder-to-trace sources—like runoff from farms, urban streets, or lawns.

Primary wastewater treatment

Physical process—removes solids through screening and sedimentation.

Secondary wastewater treatment

Biological process—uses bacteria to break down organic matter.

Tertiary

Advanced chemical/physical treatment—removes nutrients (nitrogen/phosphorus), pathogens, and other remaining contaminants.

Oligotrophic

Clear, low-nutrient waters with high oxygen and low productivity (e.g., mountain lakes).

Eutrophic

High-nutrient waters, leading to excessive algae growth.

Eutrophication

Nutrient overload (often from fertilizer runoff) fuels algal blooms. When algae die, decomposition consumes oxygen, creating 'dead zones' where aquatic life cannot survive (e.g., Gulf of Mexico).

Municipal Solid Waste (MSW)

The waste generated by households and businesses, including paper, food scraps, plastics, yard waste, metals, glass, textiles, and electronics.

Problems of Landfills

They take up space, can leak leachate (contaminated liquid) into groundwater, produce methane gas (a potent greenhouse gas), and discourage waste reduction.

Liners

Prevent leachate from seeping into soil.

Leachate Collection Systems

Drain and treat contaminated liquids.

Gas Collection Systems

Capture methane for flaring or energy use.

NIMBY

'Not In My Backyard' reflects public opposition to landfills near their homes, often leading to disproportionate placement in low-income or marginalized communities.

Advantages of WTE (Waste-to-Energy)

Reduces landfill volume and generates electricity.

Disadvantages of WTE (Waste-to-Energy)

Can emit pollutants (like dioxins), discourages recycling, and requires high capital investment.

Environmental Advantages of Source Reduction and Recycling

Conserves resources, reduces energy use and emissions, and lowers landfill demand.

Disadvantages of Source Reduction and Recycling

Recycling can be energy-intensive or economically inefficient if contamination is high or markets are weak. Not all materials are recyclable.

Integrated Waste Management

A comprehensive strategy that combines waste prevention, recycling, composting, and disposal, needing public education, effective policy, market support for recycled materials, and infrastructure like sorting facilities and compost programs.

Total Product Life Cycle

Tracks a product from raw material extraction → manufacturing → use → disposal. Pollutants can enter at any stage.

Cradle-to-Grave

A linear approach—product ends in a landfill or incinerator after use.

Cradle-to-Cradle

A circular approach—products are designed to be reused, recycled, or composted with minimal waste, mimicking nature's cycles.

Classes of Chemicals with Toxic Risks

Persistent Organic Pollutants (POPs), heavy metals (like mercury or lead), and endocrine disruptors that bioaccumulate in organisms and biomagnify up the food chain.

CERCLA (Superfund)

Comprehensive Environmental Response, Compensation, and Liability Act, passed in 1980, identifies contaminated sites and holds polluters financially liable.

Polluter Pays Principle

Holds polluters financially liable.

Trust Fund for Cleanup

Establishes a trust fund for cleanup when no responsible party can be found.

Hazardous Site Cleanup

Prioritizes cleanup of the most hazardous sites.

Minamata Disaster

Mercury poisoning from industrial wastewater led to severe neurological disease.

Bhopal Disaster

A pesticide plant gas leak (methyl isocyanate) killed thousands and caused chronic health problems.

Love Canal

A neighborhood built on toxic waste led to health problems and relocation; helped spark the creation of CERCLA.

Classical Economic Model

Views the economy as independent from nature. Resources are infinite, waste is externalized.

Ecological Economic Model

Recognizes the economy exists within ecological limits. Resources are finite, and sustainability is essential.

Produced Capital

Physical items like machines, buildings, roads.

Natural Capital

Ecosystem goods and services—air, water, forests, minerals.

Intangible Capital

Human/social capital—education, culture, institutions, trust.

GDP/GNP

Measure market activity, but not well-being; ignore social/environmental costs.

GPI

Adjusts for inequality, adds non-market benefits (like volunteering), subtracts social/environmental damage.

False Dichotomy of Environment vs. Economy

Framing these as opposites is misleading. A healthy environment supports a sustainable economy, and vice versa.

Take-Make-Waste Model

Linear, extractive, and wasteful.

Borrow-Use-Return Model

Circular, mimics nature, prioritizes recycling, reuse, and sustainability (e.g., industrial ecology).

Cradle-to-Grave Model

Product life ends in disposal—unsustainable.

Cradle-to-Cradle Model

Product is designed for continuous reuse/recycling—minimizes waste and pollution.

Sustainability

Meeting today's needs without compromising future generations. Involves balancing environment, economy, and equity.

Biblical Stewardship of Creation

Emphasizes responsible care of God's creation—not exploitation.

Ecosystem Components

Biotic (living) + Abiotic (non-living) parts that interact.

Energy Flow in Food Webs

Energy flows one way (10% rule), nutrients cycle (e.g., carbon, nitrogen).

Trophic Levels

Producers → Primary consumers → Secondary/Tertiary consumers → Decomposers. Each level transfers ~10% of energy.

Keystone Species

Disproportionately important species—removal causes ecosystem collapse (e.g., sea otters, wolves in Yellowstone).

Population Growth Dynamics

Affected by birth/death rates, immigration/emigration. Can grow exponentially or logistically (with carrying capacity).

Demographic Transition

Four-stage model: High birth/death rates, Death rates fall, Birth rates fall, Stabilization or decline.

Green Revolution

20th-century agricultural boom—high-yield crops, fertilizers, irrigation. Increased food but caused environmental harm.

Biodiversity Value

Values: Ecosystem services, medicine, culture, stability. Threats: Habitat loss, climate change, pollution, invasive species, overexploitation.

Water Cycle

Evaporation → Condensation → Precipitation → Runoff/infiltration.

Eutrophication

Nutrient overload → algal bloom → oxygen depletion → marine die-off.

Factory Farming Risks

Crowded, unsanitary animal conditions. Risks: antibiotic resistance, water/air pollution, disease spread, animal welfare.

Integrated Pest Management (IPM)

Combines methods—biological, cultural, chemical—as a sustainable alternative.