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Chapter 2 – Environmental Ethics, Economics, and Policy Chapter 2 Outline • • • • • Historical Views of Nature The Environment and Morals and Values The Importance of Economics Quantifying the Value of Ecosystems Ecosystems and Governments Environmental Policies • US Environmental Laws and Policies • International Laws and Policies © 2013 Pearson Education, Inc. 2.1 Changing Views of Humans and Nature • Pre-industrial views – Animism • Living/nonliving objects have soul/spirit • Common religious feature for indigenous people – Domestication of plants/animals • Humans alter ecosystem • Monotheism rises during agricultural development – New beliefs mostly removes humans from nature © 2013 Pearson Education, Inc. 2.1 Changing Views of Humans and Nature • Enlightenment and industrial revolution – New technology – New scientific understanding • Evolution • Botany/zoology understanding environmental connections – New ideas • Transcendentalism • Birth of modern environmental movement – Man and Nature by George Perkins © 2013 Pearson Education, Inc. 2.1 Changing Views of Humans and Nature • Conservation vs. preservation – Preservationist view • Parks/public land should preserve wild nature in pristine state – All hands off! – Conservationist view • Should be used and managed sustainably to provide the greatest benefit to the greatest number of people – Timber, water, etc. may be used sustainably © 2013 Pearson Education, Inc. 2.1 Changing Views of Humans and Nature • Modern era – Environmental trends, debates, and warnings dominate media – Also entwined in global politics – Beginning to understand dependence on ecosystems © 2013 Pearson Education, Inc. 2.2 Environmental Ethics • Doing the right thing–main ethical traditions – Virtue ethics • Right if motivated by virtues (kindness, loyalty, justice, etc.) – Consequence-based ethics • Importance of outcome (benefit vs. harm, pleasure vs. harm) • Utilitarianism–greatest good for most people – Duty-based ethics • Based on set of rules/laws (lying always wrong) © 2013 Pearson Education, Inc. 2.2 Environmental Ethics • Environmental ethics differ – Intrinsic value • People, organisms, or objects are valued – Instrumental value • Things valued as a means to something else © 2013 Pearson Education, Inc. 2.2 Environmental Ethics • Anthropocentric ethics – Intrinsic value–humans only – Instrumental value–everything else that helps humans • Biocentric ethics – Intrinsic value–all living things • Ecocentric ethics – Intrinsic value–communities and ecosystems – Deep ecology movement © 2013 Pearson Education, Inc. 2.2 Environmental Ethics • Ecofeminism – Fosters feminine concerns for interrelationships among humans, nonhuman life, and the environment – Women suffer disproportionately from human destruction of the environment © 2013 Pearson Education, Inc. 2.2 Environmental Ethics • Environmental justice – Seeks to protect natural resources for all regardless of race, gender, economic status – Involved in many international treaties/negotiations on global issues – Concern for developing regions © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Economic systems – Subsistence economy • Society meets need without gaining wealth – Market economy • Production and consumption take place in markets guided by prices • Free market economy – Government does not influence the marketplace with subsidies, taxation, or regulation. © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Economic systems – Planned economy • Government regulates the price of goods and services and the level of production • Control usually by regulation, incentives, subsides, grants, and taxation © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Supply and demand – Price increases when supply low • Producer gains more profit • Neoclassical economic theory • Focus–price and production set through supply and demand interactions – Economies of scale • Cost of production lower in mass © 2013 Pearson Education, Inc. © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Economic value – Price consumers will pay • Not a fixed amount • The more you have, the less you are willing to pay • Discount rate–rate at which economic value declines with time © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Market Complications • Free markets may deplete resources – Externalized costs and benefits • Positive externalities–third party benefits • Negative externalities–third party suffers – External costs–cause problems to human well being © 2013 Pearson Education, Inc. 2.3 The Environment and the Marketplace • Unknown costs and benefits – Not all costs are currently known – Example: Smoking • Limited resources – Economic models treat resources as infinite or interchangeable – Rarely true © 2013 Pearson Education, Inc. 2.4 Valuing Ecosystems • Economic valuation–a price tag for nature – What is cost of an ecosystem • Marginal value–willingness to pay compared to alternative • Travel-cost valuation–how much people will to pay for travel to visit ecosystem • Hedonic valuation–difference of real estate price affected by environmental alternatives • Contingent valuation–value based on what people will pay © 2013 Pearson Education, Inc. 2.4 Valuing Ecosystems • Ecological valuation – Value of ecosystem measured by cost of possible loss of ecosystem • Natural capital–Earth's resources humans depend on • Ecological valuation–what will it cost us if lost – Example: deforestation may lead to cost of flooding © 2013 Pearson Education, Inc. 2.4 Valuing Ecosystems • Measuring the wealth of nations – May externalize costs • Gross domestic product (GDP) – Value of goods/services produced divided by population • Genuine progress indicator (GPI) – Alternative measure – GDP–economic value of degradation/enhancement of environment © 2013 Pearson Education, Inc. FOCUS ON SCIENCE: Calculating Ecological Value • Studied the ecosystem service provided by native forest • Examined coffee production in Costa Rica – Compared pollination rates – Coffee closer to native forest had higher pollination fruit yield (ecosystem service) – Loss of surrounding forest equals $60,000 in lost crop production/year © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Policies–principles that guide in setting goals, decisions, and activities • Environmental policies–guide decisions/action that influence environment – Achieved via regulation, incentives, partnerships, volunteerism © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • The policy cycle – Series of steps government takes to develop and revise policies • Problem identified • Policies formed – Public hearings, debates, lobbying – Policy implemented – Policy assessed • Revision or termination © 2013 Pearson Education, Inc. © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Environmental policies–in action – Regulatory mandates • Legal standards for action – CAFE regulations – Incentives • Offer something appealing – Tax credit for new technology » Hybrid vehicles, solar panels © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Environmental policies–in action – Market-based policies • Economic markets used to guide actions – Cap and trade » Regulatory limit set, rights to exceed limits traded on market – Volunteerism • Work performed freely by community – "Give a hoot don't pollute," "Only you can stop forest fires," park cleanups © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Policy decision framework–eight issues – Government vs. individual control • What level of government control? – Laws mandating recycling, etc. – Competing public values • Logging jobs vs. watershed quality – Uncertainty and action • Precautionary principle–any evidence it could cause a problem? © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Policy decision framework: 8 issues – Which level of government decides? • Federal vs. state vs. county vs. city – Which government agency has jurisdiction? • Agency overlap for same system – River with levies and dams – Protection against selfish actions • Tragedy of the commons © 2013 Pearson Education, Inc. 2.5 Environmental Policy: Deciding and Acting • Policy decision framework–eight issues – The best means to an end • Goal usually agreed on • Issue is acceptable strategy – Political power relationships • Political compromises • Political parties in majority • Regional issues © 2013 Pearson Education, Inc. 2.6 U.S. Environmental Law and Policy • Government function – Three branches involved • Legislative • Executive • Judicial – Regulations–specific rules • Establish standards, compliance, enforcement – Case law–various decisions from courts • Precedents influence future decisions • Interpretation © 2013 Pearson Education, Inc. © 2013 Pearson Education, Inc. 2.6 U.S. Environmental Law and Policy • Constitution and environmental policy – Articles and amendments influence • Federal government regulates foreign/interstate commerce • Public lands • Immanent domain • Equal protection (environmental justice) © 2013 Pearson Education, Inc. 2.7 International Environmental Law and Policy • Environmental Laws – Sovereignty • Country can do whatever it wants, as long as it does not violate international laws agreed to – Customary international laws • Behaviors/rules of long-standing precedent – Conventional international laws • Treaties – Judicial international laws • Standards set by international courts/ tribunals © 2013 Pearson Education, Inc. 2.7 International Environmental Law and Policy • International institutions – Environmental policies/laws influenced • United Nations – Most important – 54 nations involved in economic and social council • Regional consortia – European Union, Organization of American States, etc. • International financial institutions – World Bank, World Trade Organization • Nongovernmental organizations – Greenpeace, World Wildlife Fund © 2013 Pearson Education, Inc.