环境与自然资源经济学教师手册M22_TIET1380_08_IM_C.pdf
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1、Chapter 22 Development,Poverty and the Environment The remaining chapters in this book examine the issues of sustainability and global economic systems.As you are likely teaching environmental studies students,the topics within the subfield of ecological economics can be also covered along with thes
2、e chapters.Chapter 22 considers the global economic system.Economic growth is defined and the relationship between growth and development in the industrialized countries is explored.Since the most severe pollution problems tend to be experienced by the less developed and/or most impoverished countri
3、es,raising living standards through economic development is often touted as a solution.Differing views on development are explored.1.Define economic growth.2.Define economic development.3.Examine the growth-development relationship.4.Present the standard/traditional measures of growth and wealth suc
4、h as Gross Domestic Product.Discuss pros and cons of using the standard measures.5.Present and discuss alternative measures.6.Discuss poverty.I.The Growth Process A.Economic growth occurs in two main ways.The production function,which expresses the mathematical relationship between inputs and output
5、s,can be used to examine these concepts.1.Growth can occur through increases in inputs.a.Inputs can grow via economies of scale.b.Inputs can also grow due to the law of diminishing returns.c.If an increase in all inputs leads to the same percentage increase in output,then the process exhibits consta
6、nt returns to scale.2.Growth can also occur through increases in the productivity of inputs due to technological progress.Chapter 22 Development,Poverty and the Environment 135 B.Reduced growth occurs in two main ways:1.Reduced growth can occur if there are reduced input flows.a.Labor is an input.Po
7、pulation growth has slowed in many countries,causing growth in the labor force to slow or stop.Most studies,however,have found capital and labor to be strong substitutes.b.Energy costs are rising.Reduced use of more expensive inputs can slow growth.c.Limitations on capitals substitutability for othe
8、r factors or on the productivity of investment can hinder growth.The degree of substitutability between capital and resources is not clear.d.Capital and energy as complements may be replaced with a capital-energy substitution.Energy-saving equipment is one example.e.Reductions in the future producti
9、vity of capital can also slow growth.As more capital is committed to combating pollution,fewer goods are produced.Environmental quality is enhanced,but environmental quality is not included in traditional measures of growth.f.New-source bias also diminishes the incentive to invest in new capital.The
10、 regulatory process focuses on new sources,which diminishes the relative profitability of new investments.2.Reduced growth can also occur with limits on technological progress.a.Limits on technological progress can be a result of institutional limits.b.Limits on technological progress can also occur
11、 with decreasing commitments to research sectors.C.Example 22.1 suggests that resource-abundant countries may be less likely to experience rapid development(the“Natural Resources Curse”).D.Environmental policies impose large costs on industry,but the impact on the rate of inflation has been small.Th
12、is is because pollution control expenditures typically make up a small portion of industry costs.E.Employment gains at pollution control equipment manufacturing firms typically more than offsets employment losses in those firms that must purchase and install the equipment.F.A recent study on the eff
13、ects of environmental regulation on employment was done on the regulation of air pollution in manufacturing plants in the Los Angeles region.Results show that increases in air quality regulation involving large cost increases from 19791991 resulted in very small(but statistically insignificant)incre
14、ases in employment.This case is discussed in Example 22.2.This same debate was highlighted in Chapter 21 also.G.Price increases for energy can be a source of“growth drag.”Rising energy prices during 19731974 led to lower levels of investment and decreased productivity.Jorgenson(1981)and Uri and Hass
15、anein(1982)found that from 19731976,productivity growth resulting from technological progress declined as energy prices rose.H.As long as new,less energy intensive capital can be purchased,productivity rates will be restored.I.Ex ante substitution refers to the time period prior to investment.Ex-pos
16、t refers to the time period after the equipment is installed.Limited ex-post substitution possibilities have been blamed for slow productivity growth after the rise in energy prices in the 1970s.Ex-ante substitution possibilities determine future economic growth in the long run.J.Some studies have s
17、uggested that switching to either high-energy efficient technology or to renewable energy sources will not only reduce pollution,but will result in increased incomes and increased employment.136 Tietenberg/Lewis Environmental and Natural Resource Economics,Eighth Edition II.Outlook for the Near Futu
18、re A.Some studies suggest that the impacts on the labor market of declining population growth will be quite large.These impacts could result in a reduction in unemployment rates for young adults.They could also result in upward pressure on wages and aid in gaining greater income equality.B.The econo
19、my is now in the midst of a transformation from an industrial society to an economy based on information.This means the economy is moving from a goods-producing economy to a service-producing economy with an increasing reliance on information processing.C.Employees in the information sector make up
20、the largest category of workers.This suggests that the demand for skilled labor will continue to rise.D.The effects of the move toward an information economy are potentially huge.More workers will work from home which both increase productivity and reduce dependence on energy.Education is growing in
21、 importance to provide skilled labor.Lower costs of gathering information will help inform environmental policy and environmental justice.Better information will also make monitoring and enforcement of environmental policies easier.E.Access to information is not always a good thing.The events of 9/1
22、1 illustrated how access to information can be used to destroy.III.The Growth-Development Relationship This section ponders the questions of whether or not growth serves as a vehicle for development and whether or not growth has made the average person better off.Economic growth,as currently measure
23、d,has some undesirable characteristics.A.A true measure of development focuses on welfare measuresthose which attempt to answer the question of whether or not we are better off.B.However,conventional measures focus on output measures,which tell us how many goods and services have been produced,but d
24、o not tell us how well off we are.C.Gross domestic product(GDP)is the most commonly used measure.GDP is the sum of the outputs of goods and services produced in any year by an economy(or country).Prices weigh the importance of the goods and services in the GDP,and thus,the value added to each sector
25、 is summed.D.Net domestic product(NDP)is gross domestic product minus depreciation of the capital stock.E.Constant-dollar GDP and constant-dollar NDP adjust GDP and NDP for the effect of price rises.However,this correction does not solve all problems as not all components of GDP contribute equally t
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