NATR 2050: exam 1 study guide for environmental economics

environmental economics

balancing the needs people have for products/services with protecting natural resources & the environment.

microeconomics

concerned with the economic behavior of one person, one household, one business

-how our decisions & behavior affect supply/demand, and in turn, prices. and vice versa

macroeconomics

focuses on the bigger picture, the way that a nation performs, has its structure, and behaves

-growth, inflation, unemployment, taxation

different types of economic systems

subsistence economy

market economy

free market economy

planned economy

subsistence economy

society meets its needs from its ENVIRONMENT without accumulating wealth

market economy

production & consumption are affected by prices based on currency. individuals/businesses decide on their own what they will make/purchase

free market economy

govt does not influence the marketplace with taxes or regulations

planned economy

govt regulates the price of goods/services & production level

controlled by incentives, regulations, subsidies, taxes

how to value ecosystem

marginal value

travel-cost value

hedonic value

contingent value

marginal value

the willingness to pay for a thing compared to an alternative thing

travel-cost value

how much ppl willing to pay for travel to visit ecosystem

hedonic value

difference of housing prices affected by environmental alternatives

pay more for house near park or woods. but what if sewage is nearby? pay less.

contingent value

value based on what people will pay

asking what ppl would be willing to pay for its conservation

ecosystem services

the conditions and processes that natural ecosystems & species inside them sustain human life.

ecological valuation

value of ecosystems measured by the cost of possible loss of ecosystem

EX: deforestation may lead to cost of flooding

GDP

value of goods/services produced divided by population. it is a measure of how well a country’s economy is doing.

Genuine Progress Indicator

this is the GDP plus or minus the economic value of positive or negative impacts on the environmment.

destruction of forests or waste bring down a country’s gpi.

restoration practices bring up a country’s gpi.

ecosystem service example

water

food

medicine

raw materials

soil formation

biodiversity

habitats

photosynthesis

aesthetics

spirituality

recreation

education

pollination

cleaning water & air

climate regulation

flood control

donut economics

meeting the needs of everyone within the means of the planet. no one falls short on living essentials, and also making sure we do not overshoot our using up of earth’s resources & support systems.