What effects of pollution are there?
1. Environmental Degradation
-Impaired photosynthesis
-Acid rain
-Death of wildlife species
2. Human Health
-Air pollution (Respiratory problems)
-Water pollution (Rashes)
-Noise pollution (Hearing loss)
-Soil pollution (Food contamination)
3. Global warming
-Increased sea level
4. Ozon layer depletion
5. Infertile land
-Impaired plan
What forms of pollution are there?
-Air pollution (Burning of coal -> Greenhouse gases)
-Soil/ Land (Mining, Chemicals)
-Water (Industry, Agriculture, Households)
-Others (Heat, Noise, Light or Radioactive)
What is a payment for environmental services?
Please give an example
-The beneficiaries of an ecosystem service make payments to the provider of that service
-An example is the supply of food, water or timber (provisioning services)
What is biodiversity and why is it so important?
-Total sum of all genes and ecosystems in a region
Importance:
-Living species serve „life support“ functions
-genetic resistance (disease resistance and increased crop productivity)
-Drugs are directly derived from plants
What is meant by the land-use trilemma by the WBGU?
-It is a term used by the „Wissenschaftlicher Beirat Globale Umweltveränderungen“
-Implying that all three targets in use of land need to be balanced
-If land is used to battle food security that may result in deforestation (negative for biodiversity or climate crises)
What is meant by the term „Maximum sustainable yield“?
Please show it in a graph.
-Maximum sustainable yield is the most we can take from a renewable resource on a sustainable basis, without reducing its long-term stock
-Regeneration function (parabola) with population size (X) and growth rate (Y) -> Maximum is MYS
What is meant by the terms scale effect and product effect?
scale effect: trade helps to scale production
product effect: consumption pattern change
What is private and common ownership?
Privat:
-Only one individual or a small group of people has ownership
Common:
-The public in general owns property rights
-Only members of a small group have access to resources
What is sustainable development?
Development, that meets the needs of this generation without compromising the ability of future generations to meet their needs.
What is the Coase theorem?
If one party has the property right to cause negative externalities, the other one can pay to stop them
-> The price will be so high that the marginal external damage = marginal to price to stop externalities
What is the difference between a point and a non-point source?
-A point source is easy to identify, monitor, and control
-A non-point source is hard to control
What is the difference between GATT and WTO?
GATT:
-multilateral trade agreement
-Only provisional after failure of ITO
-Only apply to the trade of products
WTO:
-Legally independent organization
-UN special agency
-Rules also apply to trade of services and property rights
-Dispute settlement system
What is the difference between the WTO and the GATT?
-GATT is an agreement, WTO is an organization
-GATT was a provisional agreement after the failure of ITO
-The GATT rules apply only to the trade of products, and WTO rules to all trade
What is the Doha round?
-Series of trade negotiations started in Doha (2001)
-Addressing agriculture, trade of intellectual property and
market access to goods
-Still not concluded due to difficulties between developing and developed countries
What is the free-riding problem?
-Applies to non-excludable goods
-A person receives the benefit of a good without paying for it
-> If the government provides the goods it can force you to pay taxes
What is the goal of the WTO?
To reduce trade barriers
-Tariffs
-Non-tariffs(Quota, Embargo or anti-dumping-measures)
What is the idea of a carbon footprint?
-Total amount of greenhouse gases produced directly or indirectly by human activity expressed in tons of CO2
The goal is to make CO2 pollution visible to consumers
What is the tragedy of the commons?
-By Garrett Hardin
-Occurs with rival but non-excludable goods
-If there is open access to a good it gets overused by free riders
-Non-sustainable level
-> Leads to degradation
-Cost to society is higher than to each individual
What kinds of regulations are there?
-Regulate behavior directly (Making behavior forbidden or required)
-Legal sanctions
What types of goods are there and how are they classified?
-Public goods (Nonrival and non-excludable ->Markets wouldn’t provide them)
-Private goods (Rival and excludable)
-Common goods (Rival and non-excludable)
-Club goods (Non-rival and excludable)
What types of property regimes are there?
-Individual property (One person holds rights)
-Community property (Shared among the members of a group)
-Public/ State property (Owned and managed by the government)
-Open Access (Land belongs to no one)
When a good is non-excludable people have an incentive to become…
-They have an incentive to become a free rider
-Those are people who benefit from a good without paying for it
-Everyone hopes the others will pay for it
Why is labeling a market-based instrument?
-Consumer pays a price premium for having a (environmentally/socially) friendly product
-Producer receives this premium for his higher production costs
Why is land so important?
-To battle the three most severe crises of humanity the use of land must be optimized (land use trilemma)
-> Integrated land management
-The preservation of land is essential for food security
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