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Course: ENVIRON 367, Fall 2011School: Michigan
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lifecycleofproducttorawmaterialtodesigntomanufacturingtotransportationto;lifecycleassessment,lookatentire lectures 12:46 Evolutionofenvironmentalissues 1.1970sEndofpipetreatmentlimitedaccountability,relianceonabatement 2.pollutionprevention(reduce,reuse,recycle) 3.designforenvironment(extensionofnumber2 distributiontofinaluse;alldifferentstageslookatsystemperspective))...
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lifecycleofproducttorawmaterialtodesigntomanufacturingtotransportationto;lifecycleassessment,lookatentire lectures
12:46
Evolutionofenvironmentalissues
1.1970sEndofpipetreatmentlimitedaccountability,relianceonabatement
2.pollutionprevention(reduce,reuse,recycle)
3.designforenvironment(extensionofnumber2
distributiontofinaluse;alldifferentstageslookatsystemperspective))
4.sustainabledevelopmentfocusonenvironmentalaspect,thinkingmorebroadly
socialandeconomicissues,largerthan3,withinclusionofsocialjustice,socialstability
andeconomicaspects/growth.Ultimategoalistoeconomicgrowth,although
environmentalissues,stillneedtothinkeconomicgrowthandenvironmentalissues.
Morebroad.Compromises
historyofsustainabledevelopment
1962:silentspring
1970firstearthday,EPAbyNixon
1972unhasfirstconferenceonhumanenvironment
1983unestablishedBrundtlandcommission:examineworldscriticalenvironmentand
developmentproblems
1987:brundtandcommissionreport;3componentsofsustainabledevelopment:
environmentalprotection,economicgrowth,socialequity
1998;peopleplanetprofit,businessperspective,Elkington
1992;Rioearthsummit
2002;thirstunconferenceonenvironmentanddevelopment
2012;Rioagain
sustainabledevelopmentisdevelopmentthatmeetstheneedsofthepresentwithout
compromisingtheabilityoffuturegenerationtomeettheirownneedsbrundtland
commission
problem:wearefarfromthisdefinitionofsustainability.Thismaycauseusguiltand
perhapsfrustrationandstheremabeatendencytojustgiveup
commonaspectsofsusdevelopment:needsofthefuture,peopleneeds,limitationon
needs,withinthemansofnature
grandchallengesatglobalscale
1.people:worldpopulation:developingcountrieshavemostincrease,hugeincrease
afterWW!!,8billion2020,age:developingincreaseinyoungerage,fewyearslarge
increaseinworkforce.
2.peoplesneeds:Maslowshierarchyofneeds:fivestages:basiclifeneeds,safety
needs,familyandrelationships.Esteemneeds(status,responsibility),selfactualizing
personalgrowthandfulfillment.Theworldisdivided,20%richesthavethemost
expenses
definitionofdevelopingcountries:un:noestablishedconventionforthedesignationof
developedanddevelopingcountries.Japan,Canada,USA,Australia,NewZealand,and
Europearedeveloped.Developing:Africa,Caribbean,centralAmerica,SouthAmerica,
Asia,andOceania
WorldBank:usegrossnationalincome,developing:lowincomeeconomies=lessthan
$995,lowermiddleincome=$9963,945
Uppermiddle=$3,946$12,195
Highincome=morethan12,196
Commonpracticenotdefinition
Emergingeconomics:Brazil,Russia,India,China
OECDcountries:organizationforeconomiccooperationanddevelopment:developed
andrichcountries
Developing:
1960higherbirthrate,andhigherchildmortality(morechildrendying)
2009:equalitybetweendevelopinganddevelopedcountriesofbirthratesandchild
mortalityrates
3.withinthemeansofnature:greataccelerationofsocialeconomicindicatorsand
environmental/naturalresourcesusage.
Safeoperatingspaceforhumanity;biodiversityloss,nitrogenreallybad
WATER:sanitation,lackingindevelopingcountries
4.future
populationincrease,rateofgrowthperyearisincreasing
energyconsumption,Indiaandchinawillconsumehalfofenergyby2030
co2emission:mostemissionsindeveloping
waterconsumer:Asia
resources:landuse,ecosystem,minerals
infrastructure:energy,transportation,housing,cityasawhole
wewilltalkabout
energy
transportation
water
cities
economicaspectofsustainability
12:46
triplebottomlineforsustainability
economicgrowth,profit
howtouseGDP:grossdomesticproduct
totalmarketvalueofallfinalgoodsandservicesproducedwithinacountryinagiven
periodoftime,itisthemostcommonlyusedsinglemeasureoacountriesoverall
economicactivity
past76%ofGDPwasadvancedeconomies,nowonly66%
marketvaolve
valuedatmarketprices,finalpricesaletconsumers
ofall
includingallitemslegallyproducedineconomicandsoldinmarkets
final
onlythevalueoffinalgoods,notintermediategoods
goodsandservices
includingbothtangiblegoods,foodclothingcars,andintangibleservices,education,
haircuts,medialcare
produced
goods/servicescurrentlyproduced,nottransactionsinvolvinggoodsproducedinthe
past
withinacountry
withinthegeographicboundaryofacountry
inagivenperiodoftime
withinaspecificintervaloftime,yearorquarter
threefacesofgdp
production
economicaspectofsustainability
12:46
marketvalueoffinalgoodsandservices.
Expenditure
Consumption(householdspendingnobuyinganewhouse),investment,government
purchases,netexports
Income
Laborincome,employeesalaries
Capitalincome,corporateprofits
Grossnationalincome
GDP+incomesreceivablefromothercountries,paymentpayabletoothercountries
InterestsordividendsfrominvestmentofUScitizens
TaxesandemployeecompensationpaidinanothercountrybyacompanyownedbyUS
citizens
GDP:location
GNI:ownership
FordoperatedinChina,itsprofitscounttowards?ChinaGDP,USGNI
GDPlargerthatGNI:profitgainedbyothercountriesisgoingtoothercountries,income
receivedfromrestofworldislessthanpayedtoothercountries.Investmentinother
countriesismorethanotherinvestmentintheircountry
GDPcomparison
Comparecountries
Spatialcomparison
Betweencountries/regions(currencies)
Temporalcomparison
$100in2000canbuymorestuffthanin2010
economicaspectofsustainability
12:46
spatialandtemporal
$100in2000vs.200rupeein2010
SpatialComparison:Purchasingpowerparity(PPP)inchinayoucanbuymorewithone
dollarthaninUS.differentcurrencieswithequivalentvalueshouldhavethesame
purchasingpowerforagivenbasketofgoods
2010:Marketexchangerateismuchhigher,butpppisjustalittlehigherthan2,
meaningthatthecostofproductsaremuchlower.
Bigmacindex
ThebigmacPPPistheexchangeratethatwouldmeanhamburgerscostthesamein
Americasabroad
Actualexchangerateswithpppindicateswhetheracurrencyisunderorovervalued
TemporalComparison:spendmoremoneynowongroceriesthan10yearsago.
NominalGDP:measuredincurrentprice;whateveryoupayinagivenyear
RealGDP:measuredinconstantprice:adjustedpricebasedoncertainpriceoftime,
firstdefineabaseyearandadjustthecurrentpricetoworthofadollartobaserate
GapbetweenGDPafterbaseyearislarger.NominalGDPislarger,whencomparedto
2000itislessthannominalinrealGDP.Samehundreddollarbillyoucanbuylessthan
20yearsago
Inflation
GDPdeflator:(nominalGDP/realGDP)X100
TellsuswhatportionoftheriseinnominalGDPisbecauseofariseinpricesrather
thanariseinquantitiesofgoods/servicesproduced
AdjustGDPforpopulation
economicaspectofsustainability
12:46
Ifcountryinvestsheavilyaboardandisdoinggood,itsGNIisusuallylargerthanits
GDP.
Bigmacindex:(actualexchangeimpliedPPP)/actualexchange=undervalueorover
valueofcurrency
Fordoperatesinchina,profitscountstowards.CHINAGDP;location,USGNI;
ownership
Temporalcomparison
NominalGDP:measuredincurrentprice.
RealGDP:measuredinconstantprice
CalculatingnominalGDP:
2005:(priceofhotdog2005*quanityofhotdogs2005)+(priceofhamburger2005*
quanityofhambugers2005)
2006:(priceofhotdog2006*quantityofhotdogs2006)+(priceofhamburgers2006*
quantityofhamburgers2006)
CalculatingrealGDP(base2005)
2006:(priceofhotdogs2005*quantityofhotdogs2006)+(priceofhamburgers2005
*quantityofhamburgers2006)
Realgdp:less,nominalGDPhigher
GDPdeflator=(nominalGDP/realGDP)*100:tellswhatportionoftheriseinnominal
GDPisbecauseofariseinpricesratherthanariseinthequantitiesofgoods/services
produced
12:46
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