Ch02_outline - Tagged

Chapter 2: Ethics, Economics, and Policy: Who or What Do We Value?

Introduction

• Environmental challenges, such as the 2010 Deepwater Horizon oil spill, raise questions about ethics, economics, and policy.

  • Key questions include:

    • Who is affected?

    • Who is to blame?

    • What actions should be taken?

    • How could the issue have been avoided?

    • How can individuals contribute to the solution?

• Our decisions are influenced by ethical considerations, economic understanding, and governmental functioning.

2.1 How Does Ethics Influence Our Decisions?

1. Definition of Ethics

   • A set of moral principles guiding behavior, merging beliefs and values to drive action.

   • Environmental decisions encompass ethical implications beyond individual actions.

2. Duties and Rights

   • Deontological Ethics:

     • Evaluates actions based on established rules of right and wrong.

     • Emphasizes the protection of rights and the fulfillment of duties.

   • The UN’s 2000 Earth Charter:

     • Stresses the intrinsic value of all life forms, asserting that all have worth irrespective of human usefulness.

     • Core pillars: Respect for the community, ecological integrity, justice, democracy, and peace.

3. Utilitarianism

   • Defines right actions as those yielding the greatest good for the most people.

   • Right or wrong is determined by assessing good vs. bad outcomes.

   • Conflicts may arise regarding the definition of outcomes and impacts on various stakeholders, including future generations.

2.2 How Are the Environment and Economy Connected?

1. Economic Exchange

   • Goods are consumed through various exchanges entailing extraction, processing, and distribution.

   • Economic decisions have both positive and negative environmental consequences.

2. Supply and Demand

   • Central to market economies:

     • Demand: Willingness and ability of consumers to purchase goods.

     • Supply: Availability of goods for purchase.

3. Government Influence on Markets

   • Adam Smith's 'invisible hand' concept suggests self-regulating markets.

   • Government can intervene by setting prices, regulating goods, and collecting taxes, prompting political debate.

4. Innovation Driven by Scarcity

   • Scarcity spurs innovation in technology to meet demand for limited resources (e.g., oil, natural gas).

   • Enhanced efficiency can result in greater consumption contrary to initial goals.

5. Jevons Paradox

   • Increased efficiency can reduce prices, consequently boosting demand.

   • Case study: The steam engine led to increased coal extraction and industrial applications.

2.3 How Can Economics Help Us Understand Environmental Problems?

1. Externalities

   • Costs unaccounted for in market transactions:

     • Negative externalities result when the true costs of products (health harms, pollution) are not reflected in their prices.

2. Tragedy of the Commons

   • Overexploitation and degradation of commonly held resources due to lack of limitations.

   • Solutions include government regulation, protected areas, and community management.

3. Positive Externalities and Public Goods

   • Ecosystem services provide unmeasured benefits like clean water and air.

   • Markets typically underproduce these benefits, necessitating government action to ensure their supply.

4. Valuing Nature

   • Economists attempt to assess the value of natural goods/services that lack clear market pricing, focusing on ecosystem services.

2.4 Why Do We Have Environmental Policy?

1. Impact of Policy

   • Government policies influence daily life in areas such as safety standards and environmental regulations.

2. Definition of Policy

   • Authoritative decisions guiding behavior through laws and regulations aimed at specific goals.

3. The Political Process

   • Politics involves decision-making processes with conflicting interests leading to policies being crafted and implemented.

   • Stages include problem identification, crafting, approval, implementation, and evaluation.

4. U.S. Environmental Policy Overview

   • Focuses on natural resource management and pollution regulation.

   • Key acts established during the 1960s and 1970s shaped federal environmental action, including the Clean Air and Clean Water Acts.

5. State and Local Policies

   • States and local governments can set regulations independently, meeting or exceeding federal standards.

6. Global Environmental Politics

   • Collaboration among nations is necessary for addressing cross-border environmental issues through intergovernmental organizations (e.g., United Nations).

2.5 What Can I Do?

1. Exercise Economic Power

   • Small, daily choices can lead to significant impacts (e.g., choosing local, environmentally friendly products).

2. Influence Public Policy

   • Engage politically by voting, supporting candidates, or running for office.

3. Engage with Elected Officials

   • Communication through letters, calls, town hall meetings, and public-comment opportunities can influence policy.