3 - Risk, Economics, and Environmental Concerns

10% of the world lives on $____ /day or less

$1.90

What's the worldwide economic value of pollination by honeybees (+ other pollinators) per year?

$200 billion

What could result from accepting a risk?

-Bad Consequences: minor or catastrophic. -Economic cost to deal with the bad outcomes.

What are some things that affect the price of food?

-Cost of land -Weather -Machinery, Fuel & Chemicals

What evidence is there for the acceptance of environmental policy by business community + public?

-Development of sustainability policies -Recognition of the inevitable price on carbon emissions.

What does a good Risk Management plan include?

-Evaluating scientific info regarding various kinds of risk. -Deciding how much risk is acceptable -Deciding which risks should be given highest priority. -Deciding where the greatest benefit would be realized by spending limited funds. -Deciding how the plan will be enforced and monitored.

What is a Renewable Resource?

-Formed/Regenerated by a natural process Ex: soil, vegetation, animals, air, and water

What is a Nonrenewable Resource?

-Not replaced by natural processes, or the rate of replacement is so slow as to be ineffective Ex: iron ore, fossil fuels, and mountainous landscapes are nonrenewable on human timescales.

What things do you need to consider when taking a risk?

-Probability of a bad outcome -Consequences of a bad outcome -Cost of dealing with a bad outcome

What are some examples of Market-Based Instruments?

-Tradable emissions permits -Emissions fees/taxes -Deposit-refund programs -Performance bonds -Informative programs

What's the purpose of U.S. National Environmental Policy Act

1969: mandates environmental impact statements for major govenrment supported projects.

When was the most known phrase about Sustainable Development coined?

1987 report: by the World Commission on Environment and Development.

Out of 1.7 billion cases of diarrheal disease each year....

500,000 deaths of children under the age of 5 occur.

What is the definition of Risk Management?

A decision-making process that involves using the results of Risk Assessment, and selecting actions to minimize or eliminate the risk.

What is Cost-Benefit Analysis?

A formal process for calculating the cost + benefits of a project/course of action, to decide if benefits > cost.

What is the definition of a Subsidy?

A gift from the government to individuals or private enterprise to encourage actions considered important to the public interest. -useful when there's clear purpose & used short transition periods

What is the definition of Probability?

A mathematical statement about how likely it is that something will happen.

What is the definition of External Cost?

Air pollution, water pollution, plant and animal extinctions, depletion of a resource, and loss of scenic quality are all examples of the environmental costs of resource exploitation. -🌲removed => erosion

Many environmental problems are symptoms of what?

An imbalance between the socioeconomic system and the natural world.

What is the definition of Pollution?

Any addition of matter or energy that degrades the environment for humans and other organisms.

How do we assign value to natural resources?

Based on our perception of their scarcity. -always been rare = Expensive -large supply/low demand = Free -renewable resources can be overexploited

Why does environmental policy tend to be fragmented in the U.S.?

Because the development of a coherent policy is highly politicized. -climate change -subsidies for fossil fuels vs. renewable energy

What can happen if subsidies are used inappropriately?

Can lead to economic distortions. -Keeps prices below true market value -May encourage detrimental activities to the environment.

What is the definition of Pollution-Prevention Cost?

Cost incurred either in the private sector or by government to prevent the pollution that would otherwise result from some production or consumption activity. 🏛🌸💩--> 🏞

What is the definition of Opportunity Costs?

Cost that occur when a decision precludes other potential uses for a resource. 🏠🌲🌲-->🚫 🔫🏃‍♂️

What is the definition of Opportunity Costs?

Cost that occur when a decision precludes(prevents) other potential uses for a resource. 🏠 🌲🌲--> 🚫🔫🏃‍♂️

What is the definition of Sustainable Development?

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

What's the bid deal about Ecosystems?

Ecosystems are a tangible source of economic wealth.

A fundamental issue surfaces concerning the proper role of __________ & __________ when concerning matters of risk.

Government and Organizations (should they focus on obtaining the greatest tangible impact or focus on problems public cares for the most?)

What is the study of Economics?

How people choose to use resources to produce goods and services and how these goods and services are distributed to the public.

What is one of the most profound dilemmas facing decision makers and public health scientist?

How to address the discrepancy between the scientific and public perceptions of environmental risks.

What is the definition of Deferred Cost?

Ignored; not recognized or whose effects accumulate over time, that eventually must be paid.

What is the major cause of diarrhea?

Infections of the digestive tract caused by the ingestion of disease organisms in food or water.

What is the philosophy of Pollution Prevention?

Pollution should be prevented or reduced at the source whenever feasible. -Pollution should not be an external cost paid by the public, rather should be internalized.

What are examples of the environmental cost of resource exploitation?

Pollution, species extinction, resource depletion, and loss of scenic quality. (hard to measure - not easily converted to monetary values)

Supply/Demand curve

Price reflects the strength of demand for and availability of the commodity. Demand > Supply = Price Rises Demand < Supply = Price Lowers

What is the definition of Pollution Costs?

Private or public expenditures to correct pollution damage once pollution has occurred.

What are the factors most life decisions involve?

Risk and Cost

What is the definition of Possibility?

Something that could occur. Inexact

What are some concerns about the use of Cost-Benefit Analysis?

That it won't measure noneconomic values: beauty, quiet, recreational opp., cleanliness.

Define Supply

The amount of a good or service people are willing to sell at a given price.

Define Demand

The amount of a good or service that consumers are willing and able to buy at a given price.

What is the definition of Resources in the sight of Economist?

The available supply of something that can be used.

What is the definition of Extended Product Responsibility?

The concept that the producer of a product is responsible for all negative effects involved in its production, including ultimate disposal of product.

What is the definition of Risk?

The probability that a condition or action will lead to an injury, damage, or loss.

What is the definition of Life-cycle Analysis?

The process of assessing environmental effects associated with production, reuse, and disposal of a product over its entire useful life.

What would governments do in the past to achieve environmental improvements that are being replaced with a different method?

They'd establish regulations with penalties. Now, they're offering compensations for following environmental goals.

What do scientist use if a risk-full situation is well known?

They'll use statistics based on past experience to estimate the risk. (Miners->Black lung disease)

What is the purpose if Environmental Risk Assessments?

Using facts, it estimates probability of harm to people or environment from particular environmental factors or conditions.

What is ultimately the deciding question from a risk management standpoint?

What degree of risk is acceptable?

What is The Tragedy of the Commons refer too?

When everybody shares ownership of a resource, there is a strong tendency to overexploit and misuse that resource. -when everyone enlarges 🐄 their consumption/use of a product --> tragedy

What are the 3 kinds of resources?

~Capital-tech. & knowledge ~Labor-human resources ~Land-natural resources