Key Terms for Environmental Economics

Flashcards covering key terms and definitions in Environmental Economics.

Externalities

Costs or benefits of an economic activity that are not reflected in market prices and are borne by third parties.

The Free Gifts of Nature

A concept highlighting how natural resources, such as air, water, and land, are treated as limitless and freely available for human use.

Tragedy of the Commons

A situation where individuals overuse and deplete a shared resource, leading to long-term collective harm.

Clean Air Act

A U.S. law regulating air emissions from stationary and mobile sources to reduce air pollution.

Clean Water Act

A U.S. law aimed at reducing water pollution and maintaining water quality.

Subsidies

Financial assistance provided by the government to support industries, leading to economic advantages.

Market Distortions

Economic inefficiencies caused by government intervention or monopolies that prevent free market equilibrium.

Polluter Pays Principle

The idea that those who produce pollution should bear the costs of managing it.

The Precautionary Principle

A principle advocating for proactive action to prevent environmental harm when scientific uncertainty exists.

Metabolism (Environmental Context)

The process by which human societies consume natural resources and generate waste, similar to biological metabolism.

Policy Rents

Economic gains derived from favorable government policies, leading to wealth concentration among certain groups.

Political Capture

A situation where industries influence policymakers to serve their interests rather than the public good.

Resource Nationalism

A policy approach where governments assert control over natural resources to maximize national benefits.

OPEC (Organization of the Petroleum Exporting Countries)

A cartel of oil-producing nations that coordinates petroleum policies to regulate global oil supply and prices.

Marketization

The process of introducing market principles into traditionally public sectors, including water and energy.

Utilities

Entities that provide essential services like water, electricity, and gas, often subject to regulation.

Free Market Environmentalism

An approach that relies on market mechanisms and property rights to address environmental issues.

Colorado River Compact

A 1922 agreement among U.S. states allocating the water of the Colorado River.

Farm Bill

A U.S. legislative package shaping agricultural and food policy, including subsidies and conservation programs.

Food Deserts

Urban or rural areas with limited access to affordable, nutritious food.