Chapter 6 - Ethics, economics and sustainable development

ethics

set of moral principles or values used to determine right and wrong

economics

study of how people use scare resources to provide goods and services

Decisions on how to….

to manipulate the environment involve economics, but are also influenced by our own culture and worldview.

Relativists

believe that ethics vary depending on the context of the problems

Universalists

define objective notions of right and wrong that hold across many cultures and contexts. like universal standards like reducing carbon emissions

Ethical standards and principle of utility

Ethical standards are the criteria that help to differentiate right from wrong.

The principle of utility holds that something is right when it produces the greatest practical benefits for the most people.

instrumental value.

If something is valued for the pragmatic beliefs that it brings us

intrinsic value

If something is believed to have a right to exist and its valuable for its own sake 

Environmental ethics

The application of ethical standards to the relationship between people and nonhuman entities

Anthropocentrism

human-centered view; nonhuman things are given little or no intrinsic value

• costs and benefits of actions are evaluated solely on the positive and negative impacts on people 

Biocentrism

Ascribes intrinsic value to both human and nonhuman life. – Biocentrists may oppose clearing a forest, even if it would increase food production for people.

Ecocentrism

judges actions based on their effects on ecological systems, including nonliving elements. – The belief is that preserving systems also preserves their components, including life, water quality, etc.

Two types of views 

Utilitarian or instrumental value 

• value for its usefulness

Intrinsic (inherent) value 

• something valuable with history

Forest value

can be both intrinsic (habitats…) and instrumental (timber, logging)

environmental ethics

ethical standards relationship between people and nonhuman entities

Ethical considerations

• Anthropocentrism - humans are first, no intrinsic  value to nature

• Biocentrism - intrinsic value to humans and nature, middle ground 

• Ecocentrism - nature first  

Industrial revolution

• agricultural economies became industrial ones when machines replaced human and animal labour

• Population, resource consumption and pollution increased 

Industrial revolution transcendentalism

rejecting materialism and beginning the ideals of preserving nature as a priority to industrial modernization.

John Muir Conservation and Preservation arose in the 20th century

Believer in transcendentalism and promoted preservation ethics. He was ecocentrism and also anthropocentric 

Gifford Pinchot Conservation and Preservation arose in the 20th century

Conservation ethic and belvied in anthropogenic in the fact that we need resources but use them wisely

Overview Conservation and Preservation arose in the 20th century

Pinchot - use natural resources wisely - conservation ethic

Muir - protect the natural environment - preservation ethic 

These were both opposed to development ethic and did not want economic development as a priority

Enviro justice

ensured that enviro polices and protection apply equally to all

A political group promotes the opening of a wildlife refuge in Alaska to oil drilling, arguing that it would create thousands of jobs for Alaskans and help lower oil prices in the United States. These arguments are examples of what?

anthropocentrism 

Which of these individuals would apply a conservation ethic to debates like drilling in Alaska, seeking to promote the “greatest good for the greatest number”?

Gifford Pinchot

Traditional economics is in the box

Natural resources, or ecosystem goods, include fresh water, trees that provide timber, and the energy from the sun, wind, water, and fossil fuels. 

Ecological services include air and water purification, soil formation, climate regulation, pollination, and waste recycling.

Natural goods

trees, water, sun energy, wind energy, fossil fuels

Natural services

air and water purification, climate regulation, pollination, soil formation

Invisible hand 

Adam smith, classical economics, where, under the right conditions, the marketplace will behave as if guided by an “invisible hand” to benefit society.

Neoclassical economics

Conflict of wanting a low prices and seller want high price to find the market equilibrium 

Cost benefit analysis

Compare the estimated costs of a proposed action with its benefits

Problems with cost-benefit analyses arise when not all costs and benefits are easily identified.

• What is the monetary value of the ecological costs of clearing a forest?

Neoclassical has environmental consequences 4

Neoclassical economics assumes that natural and human resources either are infinite or can be substituted easily when used up, discounting and economic growth is number 1. One takes into account internal costs, not external (like physical heath problems, air and water pollution)

replacing resources, external costs, discounting and economic growth 

Monetary benefits…

are more easily quantified than environmental costs

(one tree is able to be quantified, but clearing a whole forest?

Economic growth can occur in two ways

increasing inputs (labour or natural resources)

improving the efficiency of production with better tech or methods

Cornucopians

Assumes that human ingenuity can overcome environmental constraints, allowing indefinite growth

Cassandras

Believe indefinite growth is not possible

The limits to economic growth

Include simulation models to predict how our economies would fare in the future using status quo and sustainable policies. 

• Cornucopians counter that these models underestimate human ingenuity and the effect of rising prices on resources that become depleted.

Ecological economics

economies should attain a stability, much like natural populations do in the face of environmental limitations.

Steady-state economics

Mirror ecological systems by neither growing or shrinking and instead establishing a natural equilibrium. intended to mirror natural ecological ecosystems 

Issues with classical economics have led to 

environmental economics, the use of discounting and lack of accounting for external resources are the biggest problems 

Contingent valuation

uses surveys to determine how much people are willing to pay to protect or restore a resoruce 

Ways to assign monetary value to ecosystem goods (7)

• use value

• existence value

• option value

• aesthetic value 

• scientific value 

• educational value 

• cultural value 

GDP

does not account for nonmarket values and includes both desirable and undesirable economic activity. An oil spill could increase GDP because of clean up labour and economic gains but not good for the enviro

GDP alternative

Genuine Progress Indicator GPI

• Adds in unpaid positive contributions such as parenting 

• Negative impacts, such as prime and pollution, are subtracted 

The GDP of the US has increased, while the GPI has remained flat 

Full cost accounting

includes all costs and benefits. An example of this is GPI

Long term…

Sustainability is a long-term goal

GNH

Gross national happiness

• Sustainable enviro

• conservation of enviro

• preservation of culture

• good governed 

Happy Planet Index

Based on well-being, life expectancy, ecological footprint

Market failure

Occurs when positive outside forces like ecosystem service and external costs are not considered 

Ecolabeling

Advertising sustainable practices on labels to attract more consumers 

Socially responsible investing

when investors choose companies that promote sustainability 

Sustainable development

form of economic progress that maintains resources for the future.

• Economic goals

• environmental goals/ protection

• social goals/equity

Weak vs strong sustainability

Weak sustainability is the idea that natural capital can be depleted as long as human-made capital increases to compensate.

Strong sustainability means that natural capital cannot be allowed to diminish because human capital cannot replace it.

Which of these is not part of traditional economic development, but is part of the triple bottom line?

social equity

Which is not one of the four assumptions of neoclassical economics?

a. Resources are infinite or are interchangeable with other resources.

b. Future consequences are discounted in favor of present day benefits.

c. Constant economic growth is essential for a thriving society.

d. Economic decisions consider external costs that affect others besides the buyer and seller.

d

What is included in the calculation of a country’s Gross Domestic Product (GDP)?

The total goods and services produced by a country during a given year