Environmental Economics_students

Environmental Economics_students - Environmental Economics...

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Environmental Economics z z Miller (2003): Chapter 2 Ice Ko
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Lecture Outline z Conventional Economics vs Environmental Economics z GNP , GDP , Per Capital GNP and GPI z Cost-Benefit Analysis (CBA) z Using economics to improve environmental quality z Cost-effectiveness of cleaning pollution z Discount Rate and sustainable use of natural resources
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Conventional vs Environmental Economics Different views about impacts of human population growth on resource use. z Conventional Economics z If resources run out, we can always find substitutes Æ Depletion and degradation of natural resources will not limit economic growth Æ No upper limit to human population growth Environmental Economics • Non-renewable and renewable resources will be depleted if we use them unsustainably Æ Limit economic growth Æ Human population will crash if the ecosystem’s carrying capacity is exceeded
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Measurement of Economic Growth 1. Gross National Product (GNP) = The market value in current dollars of all goods and services produced within and outside a country by the country’s businesses during a year 2. Gross Domestic Product (GDP) = The market value in current dollars of all goods and services produced within a country during a year 3. Per Capita GNP (per capita = per person) = GNP Total Population
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Environmental and Economic Indicators GNP, per capita GNP, GDP compare the economic outputs of nations. z Not consider environmental quality and human well-being GNP and GDP ignore z Harmful environmental and social effects of producing goods and services z Many beneficial transactions that meet basic needs in which no money transactions are involved z Depletion and degradation of natural resources z Income distribution and economic justice
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Genuine Progress Index (GPI) Reflecting genuine (real) progress and social welfare GPI = GDP + Benefits not included in market transactions Harmful environmental and social costs
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GPI vs GDP In U.S., 1970 to 2000 z Per capita GDP almost doubled z Per capita GPI increased only 4% Cunningham and Cunningham (2009)
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Cost-Benefit Analysis (CBA) z Compares
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This note was uploaded on 12/21/2009 for the course BISC BISC003 taught by Professor Qian/ren/ko during the Fall '09 term at HKUST.

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Environmental Economics_students - Environmental Economics...

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