Ecological Economics: Key Concepts, Demand, Supply, and Market Efficiency

Ecology

Science of the economy of nature; study of interactions among organisms and their environment.

Economics

Study of how people make choices under scarcity.

Ecological Economics

A transdisciplinary field linking ecology and economics; studies how economies depend on and impact ecosystems.

Ecosystem

Functional unit of living (plants, animals, microbes) and non-living (soil, water, air, sunlight) components.

Ecosystem Functions

Natural processes within ecosystems (e.g., nutrient cycling, pollination).

Ecosystem Services

Benefits humans gain from ecosystem functions (e.g., clean water, crops, climate regulation).

Willingness to Pay (WTP)

Maximum amount a consumer is willing to spend on a good/service.

Marginal Willingness to Pay (MWTP)

WTP for one additional unit of a good.

Total Willingness to Pay (TWTP)

Sum of MWTP for all units consumed.

Demand Curve

Graph of how much consumers are willing to buy at different prices.

Consumer Surplus (CS)

WTP - actual price paid (extra benefit for consumers).

Willingness to Accept (WTA)

Minimum amount a seller accepts to sell or tolerate something negative.

Marginal Cost (MC)

Cost of producing one more unit.

Total Willingness to Accept (TWTA)

Sum of all WTA values (total cost of producing).

Supply Curve

Graph of the relationship between price and quantity producers sell.

Producer Surplus (PS)

Price received - WTA (or cost).

Market Mechanism

Prices adjust supply and demand until equilibrium.

Equilibrium Price

Price where quantity demanded = quantity supplied.

Total Surplus

Consumer surplus + producer surplus; measures total gains.

Efficiency

Resource allocation that maximizes total surplus.

Equity

Fair distribution of resources/surpluses.

Laissez-Faire

Minimal government intervention.

Invisible Hand

Market forces guide resources efficiently.

Shifts in Demand Curve

Income, related goods prices, tastes, expectations, population.

Shifts in Supply Curve

Input prices, technology, expectations.

Demand for Hunting/Recreation

Influenced by costs (licenses, gas, land lease), substitutes (indoor rec, video games), demographics, culture, safety perceptions.

Supply of Hunting Land/Recreation Areas

Influenced by land cost, labor cost, technology (maintenance, management).

Trends in Hunting Participation

Decreasing hunter participation due to higher costs, cultural shifts, urbanization, alternative activities.