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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.