ENR 2500

What does anthropocentric mean and how does it apply to economic values?

-Centered around humans and our goals and desires. It applies to economic values because our "goals and desires" lead to consumption. Consumption drives the economy/creates jobs, but it also usually ends up harming the natural worlds and our natural resource supply.

what are the various negative and positive impacts of particular consumption decisions?

-Consumption can have negative social externalities-- can create a sense of dissatisfaction in others. If those around us have more, we want more-- regardless of how much we already have **The satisfaction (utility) we get from consuming depends on who is around us.

Hobbes argues that rapidly scaling up successful development projects often doesn't work. Which of the following reasons does he give for why it doesn't work?

-Context matters; what works in one place won't necessarily work in others because of important social, cultural, political, economic, or environmental factors -Donor agencies/organizations stop doing the science/monitoring necessary to determine whether and why projects work in different contexts.

what are the key differences between a "natural" prairie and an industrial farm

-Farmers add a lot of nitrogen to the soil via fertilizers. This excess nitrogen causes a lot of problems, including runoff into nearby waters, additional greenhouse gases being released into the atmosphere, and eutrophication.

what is impact decoupling?

-Maintaining economic output while reducing the negative environmental impact reducing the negative environmental impact of any economic activities that are undertaken

what are the various negative and positive impacts of consumerism?

-Negatives: Lower self-esteem, less empathy, less intrinsic motivation, lower levels of well-being and life satisfaction Positives: More industrial production A higher growth rate economy More goods and services available. More advertising since goods manufactured have to be sold. Increased production will result in more employment opportunities. A variety of goods and services to choose from. More comforts for a better living style.

What is costly signaling theory and how does it relate to consumption?

-Peacock's tail - draws attention to them to mate but it reduces their speed to get away from predators as a cost

ways we can regulate consumption for the environment?

-Policies like the CAA, CWA, RES, EISA. -Carbon taxes, cap and trade, BACT. -Labeling (FSC, MSC, Carbon content, Organic, etc.). -Business supply chain management.

How is poverty interlinked with sustainability ?

-Poverty is multidimensional -'counts" of poverty lack important information -poverty inhibits improvement in all aspects of sustainability -important reasons to be concerned about poverty

-Esty and Winston claim that companies seeking an eco-advantage will, among other things,

-Promote and push their suppliers to become better environmental stewards

What is resource decoupling?

-Reducing the rate of resources per unit of economic activity

what is the capabilities approach.?

-Sen argues that development should not be seen simply as rising income levels but rather an increase in individuals substantive freedoms. This is the capabilities approach. "They are admirable general-purpose means for having more freedom to lead the kind of lives we reason to value. These unfreedoms that people may have

What are the various ways that "development" has been defined?

-Shafer development is much more than just economic growth or even reducing poverty like many people think. -Denis Goulet says that development should promote life sustenance

What is the difference between stocks and flows and how does this relate to sustainability?

-Stock are the quantity that accumulates over time (underground aquifer,saving accounts, fossil fuels) -Flow is the variable measured over an interval of time (Sunlight, Salary, Rainwater_

What is conspicuous consumption and how does it relate to the translation of "wants" to "needs"?

-Term used to describe consumers who buy expensive items to display wealth and income rather than to cover basic needs. Flashy consumer behavior to maintain or achieve higher social status. Translation to wants and needs, need/want to achieve/maintain social status

What is the Environmental Kuznets curve and what does it look like?

-The Kuznets curve is when marginal increases until it hits a certain point (lifestyle changes/regulations put into place) then it starts to decrease.

From an economics perspective, when is collective action most likely to succeed?

-When collective action works, it does so because the costs are low or the benefits are well above the costs Your job as an individual is to figure out how to make the costs lower (by better managing businesses) or show that the benefits are greater

what is the definition of Consumerism?

-a cultural pattern that leads people to find meaning, contentment, and acceptance primarily through the consumption of goods and services.

What is a social cost?

-an expense to the entire society resulting from a change/activity Includes both private costs and externalities

How are communities linked with sustainability?

-communities defined by location or interests - can be thought of has having or needing various assets -communities are key for decentralization - through collective action, power, local support, and cooperation

What are some key points of development?

-multi dimensional -How we think about development is the way we go about doing development

describe a strong sustainability view point

-natural capital and human capital are complementary but not interchangeable

What is absolute decoupling?

-refers to a situation in which a resource impacts decline in absolute terms

What is relative decoupling?

-resources or impacts means that the growth rate of the resources used or environmental impacts is lower than the economic growth rate, so that resource productivity is rising

describe a weak sustainability view point

-substitution of human capital for natural capital

The "capabilities approach" refers to a perspective on development that emphasizes

-the freedom to lead the kind of lives that people have reason to value -poverty can constrain people's access to resources that can improve quality of life

what are 6 major components of sustainability?

1. Time 2. Tradeoffs 3. Systems thinking 4. Collec.ve ac.on / social dilemmas 5. Efficiency vs. reduc.on 6. Individual vs. Structural change

what are three big dilemmas for sustainability?

1. as we become more prosperous our taste for consumption has grown which is a major source of environmental degradation 2.the conundrum- we invest efficiency returns into additional consumption 3- behavioral change is more important than technological change -overall reductions in consumption are more important than efficiency -there are significant social and economic barriers to reducing consumption

How do wants become needs?

1. competitive consumption 2. co-evolution of social and technological change

What are Cardona's four principles?

1.Society, economy, envt. are interconnected 2. Society must respect ecological limits or collapse 3. A society that wants to persist must think about the future 4. Localiza/on and decentraliza/on are key

What are the two laws of thermodynamics and what do they have to do with sustainability

1st law- Energy can neither be created nor destroyed 2nd law-As energy is transferred or transformed, more and more of it is wasted.

What are the important components of a "community"

A sense of belonging to a group/organization, a common interest/factor, social proximity, communities are key for decentralization, and are linked to sustainability through collective action, power, local support, and cooperation

Gallopin suggests that sustainable development can be conceptualized as the process of redefining progress, and he argues that, at its core, sustainable development is about: A) protecting the foundations of important knowledge and experience B) sustaining foundations for adaptation and renewal C) finding an ideal state for society and keeping it constant D) stimulating innovation and creativity E) All of the above Correct Response F) All but C

All but C

What is an exteraniltliy

An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved, such as the pollination of surrounding crops by bees kept for honey.

Nobel Prize winner Robert Solow argues that sustainability needs to be measured in terms of The resources we use up The resources we leave behind Both of the above None of the above

Both of the above

One reason why most of us will not invest enough in protecting ecosystems in order to eliminate global concerns about loss of biodiversity is that a) The private benefits to most of us of protecting ecosystems are usually much higher than the private costs. b) There is already enough protection, so there is no need to do any more c) If I invest in ecosystem protection, I experience costs, but I get relatively few benefits because they are spread out amongst a lot of people. d) None of the above

C)

The Mehrotra-Delamonica agenda described by Haslam et al. aligns most closely with which of the following poverty indicators that were previously discussed in the article?

Capabilities

definitions and differences between consumption and consumerism

Consumption:use of goods and services by households Consumerism: a cultural pattern that leads people to find meaning, contentment, and acceptance primarily through the consumption of goods and services.

This paradigm views consumption as an expressive act and a way for people to express meaning and social identity through symbolic behavior and purchases.

Cultural theories

What drives the EKC?

Demand for environment supports policies that fix externalities or common property resource problems -Clean Water Act, Clean Air Act -State renewable energy standards -California's AB 32 •Technological change over time

which of the following can contribute to reducing population growth rates a) access to natural resources b) women's education c) economic development d) all of the above E) B and C

E) women's education and economic development

The field of economics is anthropocentric because

Economists focus on maximizing human utility

What kinds of consump@on contribute to well-being?

Experiences and rela@onships • Taking a friend to lunch - more happiness than buying a new ounit • Be_er to value: - Experiences over goods - Others over ourselves - People over things

Gallopin argues that there is a strong agreement in the sustainability literature about what sustainable development is and what it should emphasize. T or F

False

Circle the three responses that represent the main components used to define and measure biodiversity:

Genetics/ species/ ecosystem

magnifying forces that inflect change in the sustainability economy

Globalization/Localization •US: Business ↑, Government ↓ •Europe: Use of green accounting in regulation •Rise of the middle class in emerging economies •Changing preferences amongst middle class in developed economies* •Pressure from poverty •Better science •Transparency and the movement of information

what is income growth?

Income growth is a function of technological change, investment and capital formation, and population/labor growth.

What are some of the key questions we should ask ourselves when discussing what sustainability means?

Kates: What is to be sustained, what is to be developed? Indicators - what is being measured, goals (time scale), values, practices Tainter: Of what? For whom? For how long? At what cost? Who gets to decide?

why do we need forest sustainability?

Land use change -Net increases in temperate forests. •Harvesting patterns. -Age class of harvest changed. -Many landowners set land aside for economic purposesproviding an environmental benefit. •Forest investments (plantations). •Fire exclusion/rotation management. •CO2fertilization.

Among other things, one important limitation of ecosystem services approaches that we discussed in class is: a) Leakage b) No one in the world wants to buy ecosystem services c) Practically no one wants to sell ecosystem services d) There are no limitations.

Leakage

What is marginal cost?

Marginal cost is the additional cost of producing the last unit of something.

What do businesses need from their government?

Need clear set of signals from government to make investments. Investments are inherently risky. Need to limit risk where possible. If the government is going to regulate environmental goods, it needs to do so clearly and consistently. -For example, regulations that improve air quality by controlling smokestack emissions are not inherently problematic to utility companies as long as all competitors are held to the same standards (then costs will be split between companies and consumers). •Protection of property rights, both intellectual and physical •Public goods like roads, water, sewer, well-educated workers. •Assistance with foreign trade (protection of property rights in other countries).

Do we need a single definition of "sustainability"? What are the arguments for and against?

No, there is not a single definition of "sustainability."

When discussing sustainability, both Robert Solow and Michael Toman focus on the idea that in many ways

Physical and human capital can be substituted for natural capital

why might some people claim that population growth is no longer a pressing problem for sustainability?

Population growth is easily understood - we have agreed on definitions and solutions (women's education, birth control, health care)

Why is it important to try to reduce poverty?

Poverty inhibits improvement in all aspects of sustainability

How does energy flow through an ecosystem? Where does it start and what happens to energy as it moves through the system

Primary producers (plants), primary consumers/ secondary producers (herbivores/detritus feeders), secondary consumers (predators that eat herbivores), tertiary consumers (predators that eat carnivores). Energy is "lost" as it moves through the system aka second law of thermodynamics.

How does energy flow through an ecosystem? Where does it start and what happens to energy as it moves through the system?

Primary producers (plants), primary consumers/ secondary producers (herbivores/detritus feeders), secondary consumers (predators that eat herbivores), tertiary consumers (predators that eat carnivores). Energy is "lost" as it moves through the system aka second law of thermodynamics.

what should we do about consumption?

Shift from income taxes to consumption taxes. -Value Added Tax Systems adopted in many other countries. -Do not tell people what they can and cannot consume, just make some of it more expensive. •Income taxes distort the incentives to work. •Increase incentives for savings -Higher interest rates (Federal Reserve); reduce income tax on interest and dividend income.

Six Introductory Business and Economic Concepts

The business reality •Utilitarianism and prices •Weak Sustainability •Margin •Externalities •Discounting

What does the concept of "the extended self" refer to?

The idea that we use our objects and our possessions to define and remind ourselves of who we are.

what are marginal values?

The price you observe in the market is the marginal benefit you get from purchasing the last unit

(Hobbes reading) Why did passing out textbooks fail to improve academic performance in Kenya but succeed in Nicaragua and the Philippines?

The textbooks were in English in Kenya, which most kids can't read well.

A "community" is typically defined by each of the following elements except: a) the total number of people that live in an area b) a geographic location or place c) the organizations that provide regular interaction d) social interactions on matters of common interest

The total number of people that live in an area

what is the Individual choice theories

This paradigm views consumption as a mechanism for meeting needs and maximizing short-term satisfactions

According to the economist, the first wave of sustainability _______________; while the second wave may ________________.

Was relatively low cost, or even free; cost companies resources to accomplish

social theories of consumption

We consume to signal group membership - Innate desire for social dis.nc.on and social solidarity - Maintains and challenges boundaries of social groups

Weak sustainability ( economic view) -

Weak sustainability is a marginal concept: We are clearly willing to substitute physical capital for natural capital and we do it all the time. We don't think of our substitutions as being the very last ones

Communities are thought to be most likely to avoid the tragedy of the commons if they can manage natural resources under what type of property rights regime:

common property

what is the equation for income?

consumption + savings + government expenditures + net exports

Cultural theories

consumption as symbolic, expresses meaning

What is the equation for consumption

income-savings-government expenditures - net exports

equation for consumption by an individual

income-savings-taxes+government subsidies + net borrowing

What is a social dilemma?

is a situation in which an individual profits from selfishness unless everyone chooses the selfish alternative, in which case the whole group loses.

Why does a collective action plan work?

it does so because the costs to individuals are low and/or the benefits are well above the costs.ma

What is sustainable development?

its meeting the needs of the present without compromising the ability of future genera/ons to meet their needs. (WCED - Our Common Future - 1987).

- Why is using a "count" of poverty problematic?

lack important information

What is the individual/economic theory?

necessary goods, luxury good, needs and wans

The second law of thermodynamics is important when it comes to sustainability because it means that:

organisms require a supply of energy to maintain metabolic processes

This paradigm views consumption as a means of maintaining and challenging boundaries and signaling group membership.

social theories

what is Utilitarianism?

the doctrine that actions are right if they are useful or for the benefit of a majority.

Non-economic definition of sustainability

transformed materials or energy less available for future use

What is the definition of consumption?

use of goods and services by households