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Tipping Points
A rapid, irreversible change from old state of being
to a new state
Anthropogenic
(Human-Generated) Causes
(Human-Generated) Causes ex:
Wasteful resource use, Poor Environmental Accounting
The Tragedy of the Commons
Applies to common property
̈ Short-term benefit outweighs long-term
consequences
Leads to overexploitation of shared resources
The Tragedy of the Commons ex:
goldfish
Groundwater in CA
Central Valley
How can we solve the tragedy of the commons?
Protect natural capital...
Natural resources/ services
...by using resources no faster than their sustainable
yield
Wasteful Resource Use
Occurs in both developed and developing countries
UN classifies countries as economically developed or
developing based on GDP
GDP (Gross Domestic Product)
Annual value of all goods AND services produced within a
country
Developed countries GDP
High per capita GDP, high levels of affluence, lower levels of
poverty
Developing countries GDP
Low per capita GDP, lower levels of affluence, higher levels of
poverty
Environmental Racism
̈ Low income communities/ countries tend to be
most impacted by environmental problems
¤ Communities of color
̈ Intentional targeting of pollution in poor/minority
communities
Poor Environmental Accounting
Prices Do Not Include the Value
of Nature
Market price is determined by:
the supply of a product
The consumer demand for a product
Price does not include
environmental damage
¤ Leads to “market failure”
Incorrect price that doesn’t include
the hidden/ external costs
(externalities)
Prices Do Not Include the Value of Nature
Subsidies can compound the problem
Subsidies
payments by the government to a company or
person ex: Providing land at cheap prices for mining, Cheap electricity/ water prices
How can we factor the cost of nature into prices?
Natural Capital Project
¤ Full-cost pricing
¤ Subsidy shifting
¤ Green taxes
Government regulation can correct a market
failure
Laws & Regulations
n Reduce pollution/ depletion of natural capital
n Protect people from fraud/ harm