Samenvatting
Summary Environmental Economics
- Instelling
- Tilburg University (UVT)
Summary of all the lectures of environmental economics. It contains all the relevant material needed for the final exam.
[Meer zien]Voorbeeld 3 van de 30 pagina's
Voorbeeld 3 van de 30 pagina's
In winkelwagengesponsord bericht van onze partner
4 beoordelingen
Door: gabywapenaar • 1 jaar geleden
Door: uvtstudent5 • 3 jaar geleden
Prima samenvatting
Door: jessezweekhorst • 3 jaar geleden
niet geweldig, maar wel een samenvatting van de lectures
Door: Btilburg • 3 jaar geleden
Voorbeeld van de inhoud
Summary environmental economicsChapter 2 - Sustainability
Eco-services: Economy – Ecology interaction
Different types of natural resources
- Resource economics (input in production)
-> “non-renewable” and renewable like land, fossil fuels, minerals, timber, food
- Environmental economics (services)
-> life support: e.g. air, water, ozone
-> waste sink e.g. recycling, assimilation
- Emitting pollutants
-> amenity: direct welfare
- Natural beauty
- Complex interactions
-> river example: drinking water , cooling for power plants, waste sink, transport, landscape,
support for fisheries, support for fish species climate change
Land
- Malthus (1798)
-> people like to have 𝑓 > 2 children per couple.
-> that leads to exponential population growth
-> Food cannot grow along, so that famine recurs and people stay poor and hungry (as
equilibrium mechanism)
-> Only remedy: have fewer children
- Ricardo (+/-1809)
-> (i) more and less fertile land available
-> (ii) marginal land determines cost of food
-> (iii) more fertile land produces rent for owner (𝑟𝑋 = 𝑝𝑌 − 𝑤𝐿)
-> Characteristic: fixed (constant) supply of heterogeneous quality
-> Important to agricultural economies
Options for management (Substitution)
- Resource economics
-> Greenhouses with artificial light and heating for land
-> Reproducible (man-made) capital for non-renewable resources e.g wind+solar+bio for
coal+oil+gas
-> Between natural resources e.g. vegetables for meat and fish, bio-energy for fossil fuels
- Problem of substitution is mainly technical (innovation)
Options (Substitution)
- Environmental economics
- Less polluting production methods, end-of-pipe cleaning technology (removal of SO2 from coal
fired power plant exhausts)
- How much ecological damage to accept as price to pay for wealth
, -> gradual deterioration of assimilative / carrying capacity
-> limited resilience of ecological system: tipping points + induced instability
- weak sustainability = good substitution: no need for nature per se
- strong sustainability = poor substitution: trade-off unacceptable
- Problem of substitution is on either technology, or preferences & ethics
- Do we accept polluting the oceans ‘because’ we also provide great wealth and new
technologies to our children?
- Or ‘should’ we provide both? (“Generous Sustainability”)
I = P x A x T as accounting identity
- accounting identity: True by construction
- I: impact (e.g. CO2 emissions, waste) [tCO2/yr]
- P: population (demography) [bn]
- A: per capita affluence [k€/cap yr]
- T: technology, resource use per unit [tCO2/k€]
- accounting identity: changes over time
I = P x A x T as analysis tool
- For predictions.
- Popular among researchers with ‘engineers’ view, but it has deficits
- E.g., iff income increases by x%, impact also increase by x%
-> Only iff there is no composition effect (adding a person, or a euro in Europe causes
less emissions compared to US)
-> Only iff other RHS variables are independent (and constant)
-> If income growth comes from innovations, which tend to be cleaner than existing,
then A ↗ and T ↘
- E.g. iff population increases by x%, impact increase by x%
-> Not true if innovations increase with number of people (end. growth)
- For assessment
- Based on averages, but uneven distribution
-> an additional person in Surinam contribute less to CO2 as in Netherlands
-> An additional highly-educated person = rich ≠ average contribution
Poverty and inequality
- Poverty is a persistent problem
-> Human Development Report, UN
-> But Chinese economic growth has pulled millions out
- Can poor afford strict environmental policy?
-> The tradeoff is misguided. Poverty and environmental degradation have the same cause:
corrupted institutions.
Limits to growth (Meadows et al. 1972)
-Meadows c.s ask whether continued economic growth is feasible.
, -> Assume exponential growth
-> Conclude that such is incompatible with a finite earth
-> Resembles Malthus (1798): physical bounds will limit growth through hardship
Simple Malthus model
- Per capita utility from food consumption: 𝑢𝑡 = 𝑐𝑡
- Aggregate consumption requires resources: 𝐿𝑡𝑐𝑡 = 𝑅𝑡
- Resource extraction limited by land and technology: 𝑅𝑡 ≤ 𝐴𝑡Ṝ
- Technological growth: 𝐴𝑡+1 = 𝐴𝑡 + 𝐺𝐴
- People have children: 𝐿𝑡+1 = (1 + 𝑔𝐿)𝐿t
Simple Limits to growth model
- Per capita utility from consumption: 𝑢𝑡 = 𝑐𝑡
- consumption requires resources: 𝑐𝑡 = 𝑟𝑡
- Resource extraction limited by technology: 𝑟𝑡 ≤ 𝑎𝑡
- Exponential technological growth: 𝑎𝑡+1 = (1 + 𝑔)𝑎𝑡
- Population growth: 𝐿𝑡
- Nature’s carrying capacity (CH17): M𝑡+1= 𝑀𝑡 + 4𝛾𝑀𝑡(1 – 𝑀𝑡) − 𝐿𝑡𝑟𝑡
- The above economy will collapse when 𝐿𝑡𝑐𝑡 > 𝛾.
- Collapse can only be prevented by voluntary reduced growth, not consuming as much as technically
possible: 𝑐𝑡 ≤ 𝛾/𝐿𝑡 < 𝑎𝑡 .
Criticism to Limits to growth
- Ignore feedback mechanisms such as the price mechanism (Solow) and policy
-> Non-renewable resources are still ample available
Simple model, green growth extension
- Per capita utility from consumption: 𝑢𝑡 = 𝑐𝑡
- consumption requires resources: 𝑐𝑡 = 𝜃t𝑟𝑡
- Resource extraction limited by technology: 𝑟𝑡 ≤ 𝑎𝑡
- Exponential technological growth: 𝑎𝑡+1 = (1 + 𝑔a)𝑎𝑡
- Quality growth: 𝜃𝑡+1 = (1 + 𝑔𝜃)𝜃t
- Nature’s carrying capacity (CH17): M𝑡+1= 𝑀𝑡 + 4𝛾𝑀𝑡(1 – 𝑀𝑡) − 𝐿𝑡𝑟𝑡
- Value of growth can come from throughput 𝑟𝑡 or quality 𝜃𝑡
- We can choose for clean or dirty innovations: 𝑔𝑎 + 𝑔𝜃 = ḡ
- Sustainable growth is possible if we choose clean innovations In the long run, 𝑔𝑎 = 0, 𝑔𝜃 = ḡ.
Green growth
- Direct innovation towards quality of products, efficient processes, a circular economy, reducing
material throughput.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper bascrypto. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €4,49. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 52510 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen