Lession 3 Risk, Economic and Environmental Concern

Define “Risk”.

Risk is the chance that something harmful or unwanted will happen.

What factors are used to characterize a risk?

Risk is judged by how likely the event is, how severe the harm could be, and how many people or areas might be affected.

What are “Environmental risk assessment, Risk management, and Risk perception”?

• Environmental risk assessment identifies and studies potential environmental hazards.

• Risk management is the action taken to reduce or control those risks.

• Risk perception is how the public feels or interprets the risk, which may differ from scientific evidence.

Give examples of risk management activities.

Setting pollution limits, banning toxic chemicals, building flood barriers, requiring safety equipment, or monitoring air and water quality.

Explain this statement “There is always a discrepancy between the scientific and public perceptions of environmental risks”.

Scientists rely on data and probability, while the public often reacts based on emotion, fear, or personal experience. For example, people may worry more about rare events (like plane crashes) but underestimate common risks (like air pollution).

Describe how the supply of a good or service and the demand for it interact to determine the price.

When supply is low and demand is high, prices rise. When supply is high and demand is low, prices fall. The price settles where buyers and sellers agree.

Define and give examples of ecosystem services.

Ecosystem services are benefits nature provides to humans.
Examples:

• Provisioning: food, water, timber

• Regulating: clean air, climate regulation

• Cultural: recreation, tourism

• Supporting: soil formation, pollination

Define “Pollution”.

Pollution is the introduction of harmful substances or energy into the environment that damages living things or natural systems.

Differentiate between pollution costs and pollution-prevention costs.

• Pollution costs: money spent dealing with damage after pollution occurs (cleanups, healthcare costs).

• Pollution-prevention costs: money spent to avoid pollution in the first place (filters, cleaner technology).

Give environmental examples of deferred costs, external costs, and opportunity costs.

• Deferred cost: Long-term effects, like climate change from greenhouse gases released today.

• External cost: Costs paid by society, not the polluter—e.g., people getting sick from factory air pollution.

• Opportunity cost: The benefit lost when choosing one option over another—e.g., using land for mining instead of conserving it for tourism or wildlife.