ENR 2500 midterm

How do you define the following terms "resource decoupling", "impact decoupling", "relative decoupling", absolute decoupling"? What do these terms have to do with sustainability, economic growth, and consumption?

- Resource decoupling: reducing the rate of resource use per unit of economic activity. - impact decoupling: maintaining economic outputs while reducing the negative environmental impact of any activity. - relative decoupling: higher rates of economic growth than rates of growth in material and energy consumption and environmental impact. - absolute decoupling: when the relevant environmental pressure is stable or decreasing while the economic driving force is growing.

What are some of the magnifying influences affecting corporate decisions about sustainability according to Winston and Esty?

- globalization /localization - pressure from poverty - better science - eco-awakening? - rise of middle class - transparency and the movement of information

What strategies have been successful at reducing population growth? (See Kates article on population and consumption).

- making contraceptives/reproductive health services more accessible to women - improving secondary education opportunities for women This would reduce amount of children born and make the average child-bearing age older

What are some key societal drivers of sustainability?

- rising income -individual societal preferences/norms - technology change - evidence of impact - magnifying forces

Why do some scholars suggest that reducing consumption (or reducing the number of children you have) without reducing income isn't necessarily helpful for the environment?

?

How are human activities affecting important biogeochemical cycles?

Disrupting energy flows, simplifying ecosystems, depleting stocks and/or limiting flows

List 1-2 general differences between the first and second wave of sustainability in business?

First wave: business concept focused on low cost/low impact activities and reporting, merely following policies and focus on efficiency over sustainability Second wave: aims at broader, long-term changes to business models, targets society and environment at large. Phasing sustainability into core part of business strategy and marketing, will be more costly.

Kates et al. outline five general ways of defining and/or conceptualizing "sustainable development". These five ways include which of the following?

Goals, practice, text, values, indicators

How does thinking about energy flow help us understand the differences between "natural" (largely undisturbed) ecosystems and human dominated ecosystems?

Human dominated ecosystems remove systems of renewal, but it might be less stable and resilient

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

Industrial agriculture might have supplementary energy inputs, removal of organic matter/nutrients, and reduced biodiversity and ecosystem complexity

Why might one argue that an emphasis on technology and efficiency is not be sufficient for achieving long lasting sustainability (i.e. strong sustainability)

Levee effect: using technology in response to a problem in the short-term, in doing so a long-term problem could be more dangerous.

According to The Economist, the second wave of sustainability efforts in business might

Make environmentally friendly goods more-costly than eco-hostile goods, increase wages and efforts to train workers, boost the long-term competitiveness of companies that engage in the second wave.

Discuss the pros and cons of "consumption" from an economic and business perspective.

Pros: -Benefits the economy, leading to growth and new technology -That growth could lead to higher salaries, which feeds into the cycle of consumption -Consumption also helps corporations grow and make more money Cons: -It isn't exactly sustainable to consume forever -Economic growth doesn't translate to a higher quality of living

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

Stocks: quantity that accumulates over time Flow: resources moving throughout and continually depleting

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

Sun--primary producers--herbivores--predators--detritovores. Energy gets lost throughout the system.

What happens to the marginal utility of income as we consume more? What does this mean about an individual's willingness to pay for higher and higher levels of consuming goods or services? That is, is their willingness to pay increase or decreasing as they are consuming more of something (like miles driven, square feet in their house, Mountain Dews, etc.).

The marginal utility decreases as a person accumulates more wealth. So, for Bill Gates $100 is nothing but for a poor person that could provide them food for the week. Your willingness to pay to consume things decreases as you consume more.

Absolute impact decoupling

The rate of environmental degradation (a pollutant being emitted, biodiversity decline, etc.) is declining even as GDP growsh

Relative impact decoupling

The rate of environmental degradation (a pollutant being emitted, biodiversity decline, etc.) is happening more slowly than the rate of GDP growth

The idea of declining marginal utility of consumption means

The urgency of additional consumption declines as an individual's overall level of consumption increases.

How would taxes on externalities, like carbon pollution, influence consumption?

They would lead to lower consumption, since less people will be able to afford to purchase goods that degrade the environment.

What would consumption taxes, like the value added taxes used in Europe, do to consumption levels?

They would lower consumption levels, instead of people being told what they can cannot buy.

Generally speaking, are ecosystem services likely to be worth more or less than economic activity valued in markets?

Value of the world's ecosystem services is about $125-146 trillion/yr today. GDP is worth $81 trillion. Ecosystem services are worth more!

Why should we care about sustainability?

We are a species in the process of rapidly degrading our own life support system

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

What is to be sustained and what is to be developed? For what? The various systems, components, and outputs need to be considered For whom? Is it anthropocentric/biocentric, etc. For how long? At what cost? Who gets to decide?

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

When costs to individuals are low and/or the benefits are well above the costs

The concept of externalities suggests to economists that an efficient way to influence consumption to improve the environment is to get prices right.

Yeah this clocks. If you can get a good pricing on the natural resources we use and how pollution takes away from that, then you can appropriately charge those who pollute these resources.

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

anthropocentric means that "human centered" We consume to increase human/personal utility.

The article by Mann that discussed differences between Borlaugh and Vogt represented which of the key themes of the course:

approach to change

Give some examples of the kinds of actions that companies may take in the future to be more sustainable?

commit to the use of green energy. Reduce plastic use. Commit to reducing carbon footprint.

What are the various impacts of consumerism?

economic growth, externalities, increased personal utility

Which of the terms from class is best captured by the following definition ...the institutions, structures, and processes that determine who makes decisions and how and whether and how particular actions are taken....

governance

Which of the following can contribute to lower population growth rates

improving women's access to education, improving economic development

Based on some of the readings assigned in class, some scholars have argued that the objective of "development" should be expanded to include not just economic growth but also:

increased capabilities or "freedoms", enhanced well-being, longer life expectancy, improved education

An economic/individual perspective on consumption most commonly suggests that we consume to:

meet psychological needs, increase personal utility

What is meant by the idea that society grants a company the "license to operate", and what are some conditions under which that license may be revoked?

o Albert Bressand from Shell Oil (as quoted in Winston and Esty): "We are a prisoner of the Market. There are people who can remove our license to operate."-Arthur Andersen, Union Carbide-Volkswagon? Uber?

Gallopin suggests that sustainable development can be conceptualized as the process of redefining progress, and he argues that sustainable development requires:

protecting the foundations of important knowledge and experience, sustaining foundations for adaptation and renewal, stimulating innovation and creativity

Most people like national parks are best when they aren't crowded. That way they can enjoy the peacefulness that comes with being in nature. Unfortunately, lots of people had the same idea so national parks were VERY crowded this summer because people were craving recreation and space. It's natural to wish everyone would stay home so you could enjoy the national park in peace. This is an example of:

social dilemma

Which of the following are ways that we can define or conceive of "poverty"

the condition of earning below a level of income required for survival, a level of income that is low enough that it prevents an individual from fully participating in society, the deprivation of freedoms that limit the ability of individuals to improve their lives

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, that poverty can constrain people's access to resources that can improve quality of life

One could argue that we need to focus less attention on addressing population growth than on consumption because:

we know what actions we can take to reduce population levels, there is general agreement about what solutions can be effective for reducing population growth

Which of the following best captures Howart's perspective on economic growth - which could be labeled "A-growth"?

we may be able to continue to grow economically without undermining biophysical systems, economic growth may create social costs that outweigh personal benefits in affluent societies

Some scholars claim that our personal consumption produces "negative social externalities". This is so because...

well-being depends on relative consumption so your consumption can hurt my welfare

What are some problems with GDP?

GDP does not track life satisfaction or well-being. It does not account for education, leisure, safety, and human rights.

What are some critiques of using GDP as a measure of "progress"? What does it actually measure? Why does the "A-growth" approach to sustainable consumption focus on new metrics for progress and development?

GDP does not track life satisfaction or well-being. It does not account for education, leisure, safety, and human rights. A-growth de-centers growth. Focuses on prosperity, human flourishing, net-zero impact, circular economy, thriving in balance.

What are the multiple ways that poverty has been defined and measured?

GDP, human development index, genuine progress indicator, gross national happiness index

How would efforts to reduce consumption affect businesses and business models?

They would negatively affect businesses and business models, since no business can succeed if people buy less.

For degrowth to be a viable approach to long-term sustainability, what might need to be true:

We can reduce our consumption in ways that don't negatively impact (and might enhance) our well-being, The reduction in GDP does not cause social or political unrest, The reduction in GDP does not hinder our ability to address complex societal problems Correct!

If consumption itself is a bad thing, as some have argued, and we need to do less of it, what policies could we adopt to consume less?

We could institute higher taxes on goods that are less environmentally friendly. We could also tell people what they can and cannot buy. We could also try to get people to do things that are less harmful, for example the rich don't need to fly on their private jet, since that puts much more pollution out into the air for example.

Do we have an over consumption problem among most people in the world? Or is under-consumption a bigger problem? Why? Or Why not?

We have an under consumption problem, since too many people consume too little of everything, including food and water. The amount of people who can over consume is dwarfed by the amount of people who have too little, even in developed nations like ours.

Aside from consumption, what else do we use our income for?

We use our income to save or invest it in order to gain more money in the long term, government expenditures such as different programs, and net exports.

What keeps most of us from consuming "too much of something"?

Yes, because we grow tired of things after a certain period of time, the prices of items, and that we only have a limited amount of money to spend, since income is limited as well.

Does the proportion of income we spend on various goods and services stay the same as our income changes (that is, if we become wealthier do we consume stuff in the same proportion)?

Yes, because your level of consumption is dependent on your income, so you are spending the same proportional amount of money, but you have a much lower marginal utility.

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

Yes: since sustainability has evolved from its original meaning and often becomes an aid to greenwashing, a comprehensive definition is needed so that there is no gray area No: putting a single definition on the term would limit its ability to evolve and be dynamic

The definition/perspective on sustainability that Dr. Brooks said he likes best more closely matches which of the following:

a procedural sustainability perspective

While higher income may cause us to consume too much, according to the ________________________________, it may also have a good outcome in that it encourages us to consume things that are more environmentally friendly.

environmental kuznets curve

Why do economists tend to agree with the concept of weak sustainability versus strong sustainability?

economists believe that human and natural capital can be substituted.

Even if economists believe that natural and human capital can be substituted, would there be any conditions under which they might also argue that some resources should be preserved (think of the Yosemite example discussed in class where fire threatened the old growth sequoias).

Forest example (Fernholz and Bowyer). Products required from forests have changed over time (energy, structures, buildings, paper, energy, ecosystem services, natural beauty). Consumption encourages investment, which replaces some natural capital, and saves other natural capital.

Professor Sohngen argued that consumption, driven by markets, isn't always bad. He described how markets over time have provided incentives for people to invest in forests, such as by replanting trees or by establishing forest plantations. One result of this process over the last century is that

Forests now have more stock and thus more carbon stored in them than they did 100 years ago.

The concept that business is up and government is down as a driver of sustainability refers to

the idea that it has become harder and harder for government in the US to enact laws that reduce pollution, putting more of the burden on businesses to act "sustainably" and do the right thing.

What are the pros and cons of consumption from a social/cultural/equity perspective?

the marginal utility of added consumption declines as we consume more (as income rises). People in the rich world could consume less and people in the developing world need to consume more. Consumption is not inherently bad, lots of things we consume are helpful (food, housing, education, etc.) Consuming in excess causes in equity and environmental damage.

Relative resource decouplling

the rate of extraction of a given resource is growing slower than the rate of GDP growth

What is discounting and who uses discounting?

time value of money: we prefer money today to money tomorrow. Loans, savings, return on capital example of discounting in an economic sense. Policy/government decisions require using a discount rate. Higher rates weigh the future less. Lower rates way the future more.

What things can a country change to grow their income over time (technological change, investments, labor force growth)?

A country can create new technologies that make existing processes cheaper,(see 56). Investing into capital can give people higher returns on their money, which leads to a higher income, albeit this is more passive. Having a larger population allows for more people to work, which can allow for more processes to be completed in the same amount of time, which can lower prices, and then people can either invest to increase their income or campaign for higher wages, since they will have the capacity. (Not sure if last part is on test, but it makes sense)

Does consumption always lead to reduced environmental quality and lower sustainability? Be able to explain why or why not?

Consumption doesn't necessarily reduce environmental quality, since if it is treated sustainably and managed properly, then you can end up with an improved environment since people are investing back into it. (See 47)

The article by Papola suggests that economic growth, defined as income growth, is really driven by savings (and thus investment) rather than consumption. Why?

Because endless growth/consumption leaves us with less than what we had before. It leads to too little savings and not enough investment. A lack of investment limits productivity and job growth, since with less money saved, you cannot actively participate in the economy through investments, which then leads to stagnation. You cannot grow by consuming forever. Eventually you run out of things to consume.

Why is technological change so important for future income growth?

Because money is saved by buying cheaper goods that are made possible by new technology. That saved money is the put into savings, investments, production, labor and more consumption, which all bolster the economy.

What are the differences in how "community" has been defined and measured

Communities can be location or interest based, and their condition can be measured through the various forms of capital it contains community capitals: human, natural, social, cultural, political, built, finnancial

What is the "sustainability doughnut" and how does it relate to the profound dilemma of sustainability introduced in the lectures.

Concept that displays sustainability in doughnut-like shape. Shows that growth is good and necessary, but must be done in a way that doesn't push beyond planetary boundaries. Consumption needs to be redistributed towards developing populations

When John Papola says "We didn't create this wealthy, amazing world... by eating. We did it by saving our seed corn, investing and ultimately inventing our way out of farming jobs," he basically means

Consumption is an outcome or result of savings and investments in productive capital.

Which of the following has been used to argue that focusing on efficiency as the sole approach to sustainability might be problematic in the long term?

Consumption levels are rising to "Western" standards among the growing global middle class faster than efficiency gains increase, consumption levels are rising to "Western" standards among the growing global middle class faster than efficiency gains increase

What is degrowth? What is a key argument against degrowth as a strategy for sustainability and addressing overconsumption?

Degrowth is an idea that critiques the global capitalist system which pursues growth at all costs, causing human exploitation and environmental destruction. Howarth: "reductions in growth may not be necessary for environmental sustainability...but the social costs of continued growth may outweigh the benefits"

What are the various ways that "development" has been defined? What is the history of the concept of "development"?

Development is multi-dimensional, structural change. Created in the 1940s but has colonialism and neo-imperialism

What is the difference between "development" and "economic growth"

Development: based on structural change, multi-dimensional. Culmination of change in social, environmental, economic, etc. aspects. Economic growth: would just indicate an increase or improvement in the market for goods/services rather than a structural change

What are the various theories of consumption that we discussed, how do they differ and what solutions emerge from these theories?

Economic/psych: Social: we tell a story via our forms of personal consumption Cultural: culture of consumption, created and fed by advertisers and mass media Other:

Briefly define the "margin" in an economic sense. How is the price of a good traded in a market a marginal value?

Economics focuses mostly on identifying rules for making tradeoffs over what we do with the next unit of something,-The next $ spent (by you, your friends, The OSU, government)

What are the multiple ways that people defined and depict sustainability? What are the differences between these definitions and depictions?

Environmental Standpoint: -can be depicted as the overlap between economy/profit, society/equity/people, and environment/ecology/planet in a venn diagram - could be defined as maintaining the stocks of a resource base, environmental quality, ecosystem function/services -when use is equal to/less than regeneration Economic Standpoint: -can be defined as the ability to sustain profits/production over long term, without degrading environmental/cultural foundation for that growth Social Standpoint: -the need for equitable access to all, no extreme wealth gaps, removal of discrimination, etc.

Why might some people claim that population growth is not as pressing a problem for sustainability as overconsumption?

Growth is expected to level out in coming years, but we will soon be spread very thin with planetary resources to sustain the population we will grow to, at the rate that we are consuming currently.

Why is it important to try to reduce poverty?

High levels of poverty = negative impacts. Poverty will slow down forward movements in sustainability and it affects everyone.

What are the foundational concepts, or pillars, for sustainability and why are they important (e.g. time, tradeoffs, systems thinking, efficiency vs reduction, individual vs structural change, collective action/social dilemmas, etc,). What are some examples that illustrate these concepts in relation to sustainability? *You should know how to recognize all of the pillars presented by Jeremy and Brent - and recognize examples of them in multiple contexts

Hope- the need to envision a future world that is sustainable Time- time must be used in an efficient way Tradeoffs- the things we receive in return for implementing sustainable practices Collective Action and Social Dilemmas- social dilemma is private interests at odds with collective interests, collective action problems mean that we all want positive outcomes but that requires collective efforts Governance- the institutions/structures that determine who makes decisions and how Type of Change- focus on efficiency/technology or curtailment/behavioral change Scale of Change- change in individual behaviors/decisions or policies/infrastructure/culture, etc. Systems Thinking- attacking a sustainability issue from the root Resilience- engineering resilience is how fast displaced variables can return to equilibrium, relies on recovery/constancy. Ecological/ecosystem resilience is the capacity of a system to absorb shocks and maintain function, relies on persistence and robustness

What is an implication of this point about marginal utility of income for policies that seek to increase income among the relatively poor by redistributing income from the relatively well off? Will raising income for the poor have greater benefits for society than raising income for the wealthy? Why or why not?

It will have greater benefits for society since then poor people will be able to benefit from social welfare and will have a higher utility rate for their newfound wealth. If you gave it back to the rich, it would not be for the betterment of society, since they would most likely waste it or squander it.

Regulations developed in the 1970s-1990s reduced air pollution in the US and reduced mortality due to poor air quality. This increase in human welfare, as well as unpaid time and leisure time, currently is

Not included in Gross Domestic Product (GDP) calculations, but is growing in importance.

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

Promote and push their suppliers to become better environmental stewards.

Which of the following is the best description of the profound sustainability dilemma that both Brent and Jeremy discussed in weeks 4 and 5.

Reducing economic growth could have significant social and economic impacts, but continuing economic growth could push us beyond planetary boundaries and risk ecological collapse

What is the Work-spend cycle? Do people always have a lot of freedom regarding how much they work? How does this relate to the way in which we consume and the amount that we consume?

Structural features lead to excess consumerism, consumption is not always good for us. idea of competitive consumption. Failure to value ecological services.

Which of the following are policies we can adopt that would help us reduce over-consumption in the United States?

Tax polluting goods more heavily, Use a value-added tax, Regulate pollution, and drive the costs, and thus prices, for polluting goods up.

What are some key sustainability lessons from the history of the forest sector?

That if managed properly, some natural processes can truly become sustainable, and we can end up with more than what we had before. This is seen in the number of actual trees on the planet currently. We have more trees now on less area than we did just 100-200 years ago.

In particular, what is the Environmental Kuznets curve, what does it look like, and what does it mean?

The Environmental Kuznets curve shows the relationship of GDP growth and diminished environmental quality. It looks like the St. Louis arch, but a bit wider ig, and it shows that GDP growth is coupled with degrading the environment to a certain point, the peak, at which point the GDP continues to grow as the negative impact on the environment is lessened.

Absolute resource decoupling

The rate of extraction of a given resources is declining while GDP growth continues

Unfortunately, if efficiency gains reduce costs, people may spend the extra money they have on something else. This often means that improvements in technology, such as better smart phones,

cause us to consume more of the thing that improved.

The following is a definition of which term: "... a cultural pattern that leads people to find meaning, contentment, and acceptance primarily through the consumption of goods and services."

consumerism

Definitions and differences between consumption and consumerism and how might this relate to well-being and happiness?

consumerism: "A cultural pattern that leads people to find meaning, contentment, and acceptance primarily through the consumption of goods and services." Consumption: the human transformations of materials and energy.

What is conspicuous consumption?

consumption of luxuries on a lavish scale in an attempt to enhance one's prestige

Nobel Prize winner Robert Solow argues that sustainability is about

deciding who gets what and deciding how much to leave for future generations

Define externality, marginal external cost, and social marginal cost. How does a social cost differ from a private cost? Given some examples of externalities.

externality: unpriced outputs of production marginal external cost: the change in the cost to parties other than the producer or buyer of a good or service due to the production of an additional unit of the good or service. social marginal cost: the total cost society pays for the production of another unit or for taking further action in the economy. how does social cost differ from private cost: Marginal private cost (MPC) is the change in the producer's total cost brought about by the production of an additional unit of a good or service. examples of externalities: air pollution, water pollution, CO2, congestion, biodiversity loss **SMC=PMC+MEC

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

false

Kates et al. 2005 clearly argue that a single, precise definition for "sustainable development" is needed in order to make progress.

false

Market prices generally include the impacts of externalities like air or water pollution and thus are a correct estimate of the social value of purchasing most goods and services.

false

Is there good evidence that we are achieving relative decoupling? What about absolute decoupling? What does this mean for consumption and sustainability?

growth of CO2 emissions are smaller than growth rates of GDP, so relative decoupling has occurred. Some evidence of absolute decoupling in Germany (raw material decrease, GDP increase) and China (freshwater consumption 1998 -2007 and energy use due to Asian financial crisis) -but very rare. Even if rapid deployment of renewable energy could be achieved, however, the world's addiction to material resources would likely not wane, as harnessing renewables also requires substantial investments into large-scale buildings (e.g.hydropower plants)

Which of the following best describes an important difference between "growth" and "development"

growth refers to increased quantities of some phenomena (e.g. income or jobs) whereas development refers to structural change in a community (changes in institutions or distribution of resources

What are the important components of a "community"?

human capital, social capital, cultural capital, political capital, built capital, financial capital, natural capital - communities often defined by location or interests, linked to sustainability through collective action, etc.

Which of the following sets of answers best represent solutions derived from the following perspectives on why we consume: (i) economic (ii) cultural (iii) work-spend cycle

i) change prices to reflect externalities (ii) change the stories we tell about ourselves and the things we need (iii) remove barriers to reducing working hours

Over-consumption can certainly lead to externalities and potentially and unhealthy work and life balance for many individuals, but many people in poorer countries, like Bolivia, Tanzania, and India, and even some in wealthy places like the United States, actually consume too little because their incomes are low and they have too few opportunities for jobs that pay a living wage.

true