Public goods can be characterized by these 2 factors:
-Excludability (Excludable/ Non-excludable)
-Rivalry in consumption (Rival/ Non-rival)
Public property and open-access property describe almost the same thing. Correct?
Yes
-Public property is typically state-owned
-No one owns open-access property
-Access of public property might still be limited by rules and government regulations
-Open-access property (often information) has completely open-access
What are the causes of biodiversity loss and is it measured?
-> Measured by the Living Planet Index (LPI)
-Habitat loss, degradation, and modification (Drainage of wetlands)
-Over-exploitation and unsustainable loss
-Climate change
-Excessive nutrient load
-Invasive alien species
What are the causes of forest degradation?
-Forrest fires
-Illegal logging
-Pests and diseases
-Air pollution
-Fuelwood harvesting
-Forrest fragmentation
-Land pollution
-Mining
-Soil erosion
What are the causes of overfishing?
-Industrialized fishing methods
-Destructive fishing practices (Dynamite)
-Large proportions of by-catch
-Use in medical research
What are different views on how to achieve sustainability?
1. Leave everything in a pristine state (Conservatism)
2. Develop but not overwhelm the capacity (MSY)
3. Sustainability will take care of itself when income rises (Kuznetsk-Curve)
4. Coase theorem
5. Let the market take care of it (Smith)
What are dis- and advantages of taxes?
Advantages:
-No negotiations needed
Disadvantages:
-Difficult to find the right tax level
-Lower cost to society than regulations
What are externalities?
-If the actions of one agent cause a cost to another agent
-No compensation of the cost
-Can be positive or negative
What are important events in the history of the environmental movement?
-1972 United Nations Conference on the Human Environment
-> United Nations Environment Programme (UNEP)
-1992 United Nations Conference on Environment and Development
-> United Nations Framework Convention on Climate Change (UNFCCC)
-2012 United Nations Conference on Sustainable Development
-> Sustainable Development Goals (SDGs)
What are the links between pollution and health?
-Air pollution: Respiratory problems
-Water pollution: Skin irritations or waterborne diseases
-Noise pollution: Hearing loss and stress
-Soil pollution: Contamination of food
What are measures to preserve forests?
-Subsidies (support of reforestation)
-Taxes
-Regulations
-Reforestation regulations (a certain amount needs to be reforested)
-Certification
What are measures to prevent pollution?
-Labeling
-Tradeable pollution permits
-Payments for environmental services
-Footprint
What are the problems of the Coase theorem?
-Property rights aren’t always clearly defined
-High transaction costs of the negotiations
-Large number of involved parties
What are property rights and what do they grant?
-Legally established titles to ownership use, disposal of production, goods, and services
-Bundle of rights
1. Right of use
2. Right to return from use
3. Right to transfer those rights
What are the reasons for increasing trade?
-Overall rising income
-Emerging economies with growing markets
-Technical progress
-Trade liberalization
What are the biggest challenges for the Environment?
-Climate Change
-Deforestation
-Loss of Biodiversity
-Water Shortage
-(Air-)Pollution
-> Combination of multiple problems (new contagious diseases)
What are the classifications of resources?
-Natural resources (Water, Soil)
-Biological resources (Fish, Wildlife, Trees)
-Energy resources (Coal, Oil, Gas, and Wood)
-Minerals and metals (Salt, Gold)
Also:
-Renewable (Optimal rate of use needs to be found)
-Non-renewable (Optimal rate of depletion needs to be found)
What are the consequences of externalities on production?
Negative externalities -> Overproduction
Positive externalities -> Underproduction
What are the 4 effects of trade on the environment?
1. scale effects
-Increased consumption and production (increased production)
-Higher per capita income (can lead to demand for higher environmental quality)
2. Structural effects
-Pressure to use the most efficient technology
3. Product effects
-change in consumption patters (positive or negative for environment)
4. Regulatory effects
-Increased competition can lead to pressure on environmental laws
What are the factors of an efficient system of property rigths?
-Exclusiveness (Right to exclude others)
-Transferability (Ability to transfer rights)
-Enforceability (Secure from involuntary seizure)
What are the problems of regulations?
-incentives to cut further than required
-Regulators need much information
-No research and development promoted
What are the three dimensions of sustainable development?
1. Enviromental
-Responsible use of natural resources
-Reduction of emissions
-Maintance of ecological processes
2. Social
-fair working conditions
-social services
-gender equality
3. Economic
-Fair prices for manufactures
-fair trading
(4.) Cultural
What are the three pillars of the WTO?
-Goods (General agreement on tariffs and trade)
-Services (General agreement on trade in services)
-Intellectual property (TRIPS)
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