Environmental Economics
Economics
is the field that is concerned with the allocation of scarce resources to meet
human needs. This includes what is produced, how it is produced, and how the
output is distributed. It is concerned with the costs of producing and
distributing goods and services.
The
cost of using scarce resources for any one end is that those resources could be
used for some other purpose. If we choose to spend the afternoon playing basketball,
we can't use that time to study. If we purchase a sports utility vehicle, we
are making a decision that benefits, such as safety or convenience, outweigh
the costs of purchasing a smaller, more fuel-efficient car.
Economics
is an important tool for making decisions about the conservation and protection
of natural resources because it provides information about the choices people
make, the costs and benefits of proposed measures, and the likely outcome of
environmental (and other) policies. For example, if a city wants to encourage
households to recycle, it might charge for trash pickup according to the total
weight of trash the household generates. People would have an incentive to
reduce the amount of trash they throw out. Incentives do not have to be
monetary. A World Bank paper, for example, describes
Environmental and other
public policies are most effective when they achieve the maximum possible
benefits in the most efficient way. Resources--human, natural, monetary--are
not infinite. Policymakers, therefore, try to understand how resources can be
utilized most efficiently to accomplish the desired goals by weighing the costs
of various alternatives with their potential benefits.
And
there are usually tradeoffs that have to be considered. We could prevent
automobiles deaths (and reduce pollution) by banning automobiles, but that is a
cost few are willing to accept. There are many different species that are
threatened, yet public and private groups have spent more time and resources
protecting elephants, whales, tigers, and other large animals than on
preserving other species, because it is easier to raise money and interest for
these charismatic creatures than for a lowly mollusk or weed. The choices we
make reflect more than a simple calculation of monetary costs incurred, but
also opportunities lost by not pursuing a different course of action.
Source: www.enviroliteracy.org (March,2002)
Environmental issues frequently are acted upon using an economic cost-benefit analysis. In this assignment we are going to Look at three issues:
1. “Environmental
regulation in the
2. The
3. Environmentalists have long argued that improving the environment can reap economic benefits. Are the environmentalists justified in their assessment.
Begin your study using the following link to
the