Environmental Science - Chapter 2: Key terms

Economics

the study of how resources are converted into goods and services and how these are distributed and used.

Goods and Services

Goods are manufactured materials people buy; services are work done for others as a form of business.

Centrally Planned Economy

an economy where the government decides what is made, how, and who gets it.

Free Market Economy

an economy where individuals decide what to produce, how, and for whom.

Mixed Economy

an economy where both government and individuals make economic decisions.

Supply

the amount of a product offered for sale at a given price.

Demand

the amount of a product people will buy at a given price.

Cost-Benefit Analysis

a method where decision makers compare what they will sacrifice and gain by a specific action.

Internal Costs and Benefits

costs and benefits that directly affect buyers and sellers in a transaction.

External Costs and Benefits

costs or benefits that affect parties not directly involved in a transaction, such as pollution harming nearby communities.

Short-Term vs. Long-Term Effects

short-term costs and benefits often receive more attention than long-term environmental impacts.

Endless Resources Assumption

the mistaken idea that all resources can be replaced or substituted, even nonrenewable ones.

Economic Growth Assumption

the belief that continual economic growth is necessary to maintain employment and order.

Ecological Economics

a field applying Earth’s system principles to economics, aiming for stable, sustainable systems rather than endless growth.

Environmental Economics

a field focusing on making economies sustainable through efficient resource use and addressing market failures.

Non-Market Values

values not included in the price of goods, such as clean air, scenic views, or biodiversity.

Assigning Market Values

methods to estimate the economic value of ecosystem services, like surveys or comparing property values.

Market Failure

when markets don’t reflect the full costs or benefits of actions, often ignoring environmental impacts.

Ecolabeling

a system that marks products made through environmentally friendly processes, encouraging sustainable choices.

Changing Consumer Values

when consumers prefer sustainable products, encouraging companies to adopt greener practices.

Corporate Responses

many companies adopt eco-friendly actions like recycling, reducing emissions, and improving energy efficiency.

Environmental Policy

formal plans and principles for addressing human interactions with the environment.

Goals of Environmental Policy

to protect environmental quality, conserve resources, and ensure fair resource use.

Branches of U.S. Government and Policy

Legislative makes laws, Executive enforces them, and Judicial interprets them.

First Period of U.S. Environmental Policy (1780s–late 1800s)

focused on managing public lands and westward expansion, assuming resources were endless.

Laws from the First Period

focused on land management and settlement; displaced Native Americans from their lands.

Second Period of U.S. Environmental Policy (late 1800s–mid 1900s)

focused on protecting resources after realizing they could be depleted.

Laws from the Second Period

Forest Reserve Act (1891), soil conservation laws (1930s), Wilderness Act (1964) — established national forests, wildlife refuges, and parks.

Third Period of U.S. Environmental Policy (mid–late 1900s)

focused on reducing pollution and industrial impacts through environmental laws.

Laws from the Third Period

National Environmental Policy Act (1970), Clean Water Act (1977), creation of the Environmental Protection Agency (EPA).

National Environmental Policy Act (NEPA)

required Environmental Impact Statements (EIS) for major federal actions that might affect the environment.

Environmental Impact Statement (EIS)

a report evaluating the environmental effects of a proposed government project before it begins.

Environmental Protection Agency (EPA)

created in 1970 to oversee pollution control, research, and environmental law enforcement.

Command-and-Control Approach

government sets rules and punishments for violations, leading to cleaner air and water.

Tax Breaks and Subsidies

financial incentives or giveaways encouraging environmentally friendly actions or industries.

Green Taxes

taxes on companies that harm the environment, giving them incentive to reduce pollution.

Cap-and-Trade System

a system where companies buy and sell pollution permits, encouraging efficiency while limiting total emissions.

Local Environmental Incentives

local programs like charging for waste by volume or giving rebates for efficient appliances.

History of U.S. Environmental Policy Periods

First: Expansion; Second: Conservation; Third: Pollution Control.

Environmental Policy Process

1) Identify the problem, 2) Identify specific causes of the problem 3) Envision a solution and set goals 4) Get organized 5) Gain access to influential people. 6) Manage drafting of bill and policy development.