ENVS155: Urban & Environmental Economics Lecture Reviewre

Flashcards covering key concepts, module details, assessment information, and economic principles from the ENVS155 Urban & Environmental Economics lecture.

According to Oxford Economics, what percentage of global GDP and world population did the 1,000 largest cities account for in 2023?

60% of global GDP and over 30% of the world's population.

What are some biophysical ecosystem services provided by nature in urban areas?

Directly filtering out pollutants, reducing the urban heat island effect, and encouraging positive health behaviors.

According to the 'subject approach' as described by Chang (2014), what is economics?

The study of the 'economy' involving money, work, technology, international trade, taxes, and other things related to producing goods and services, distributing income, and consuming them.

What is the theoretical definition of economics by Robbins (1932)?

"The science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."

What is the focus of microeconomics?

Individuals and businesses, often focusing on supply and demand and how actors respond to external factors like tax.

What is the focus of macroeconomics?

Governments or areas (town, city, region, country), considering the whole 'economy' as a subject and studying aggregate impacts of actors' responses to external factors.

Name four types of economic systems discussed in the lecture.

Traditional, Command, Mixed, and Market.

How is a market economic system defined?

An economic system where supply and demand direct the production of goods and services, not controlled by a central authority, and based on voluntary exchange.

In economics, what does 'supply' refer to?

For a particular good or service, it is the quantity that producers are willing to supply to the market for any given price.

In economics, what does 'demand' refer to?

For a particular good or service, it refers to the quantities that individuals, organizations, and institutions which comprise the market are willing to buy at any given price.

What is meant by 'market equilibrium'?

It is the point where supply and demand curves meet, implying that in a free market, there are no disappointed buyers or sellers.

What is market failure?

Market failure occurs where the market does not allocate scarce resources efficiently, meaning the behavior incentivized by the market is at odds with what might be socially desirable or sustainable.

What is the most common form of market failure?

A negative externality, where the actions of one agency negatively impact others with no compensation.

Give an example of a land-use intervention discussed in the lecture.

The Green Belt around London.

What is an example of a transport and transit intervention shown in the lecture slides?

The Ultra-Low Emission Zone (ULEZ) in London.

According to the lecture, what three approaches help in making a case for economic intervention?

The subject approach (how the problem relates to economics), the normative approach (what the end goal is), and the theoretical/methodological approach (how economic activity occurs).