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The Big Issues: Ethics, Economics, and Policy

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1 The Big Issues: Ethics, Economics, and Policy
End-of-term social for Geography tomorrow at 3:30 in lounge next door (followed by pub crawl); also scholarship applications available for students completing 2nd and 3rd years of their Geography programs GEOG 101: Days 21 and 22 The Big Issues: Ethics, Economics, and Policy Special guest on Tuesday, so please attend!

2 Housekeeping Items About half of the class went on the field trip. Any shared reactions for those who couldn’t make it? The final exam will be on Wednesday, April 23rd downstairs in Room 111 at 9 a.m. We will review for the exam next week. We are running out of time, so we will have to skip Chapters 18 and 19, but you are liable for their contents, so please read them. Today I will start in on Chapters 21 & 22, though please read the chapters and the notes on your own. The media analyses are due today; will get your assignments back at the exam. The film on Guatemala on Tuesday night was quite good. Tonight at 7 in 356, Room 109, “Genetic Roulette: The Gamble of Our Lives” is showing on GMOs. Any first year students with really high GPAs?

3 Environmental Ethics Ethics is about how we relate to and treat other people or things. A major environmental thinker, Aldo Leopold, said humans have gradually enlarged the circle of the beings we feel we have an obligation to treat well. Some hunting and gathering and some civilized cultures did not consider others not of their race or ethnicity to be worthy of decent treatment. Until 1863, slavery was legal on the North American continent and it still exists in some parts of the world. During the Nazi years, millions of Jews, Roma, gays, Slavs, and the disabled were put to death for being “inferior.” As the video on Tuesday showed, throughout Latin America even today, the Ladino elite looks down on the indigenous majority as not worthy of the same consideration and human rights as they expect for themselves, and there is a whole history of genocide and other atrocities against First Nations.

4 Environmental Ethics Dehumanization is a part of what makes it easier for soldiers and their officers, to fight in wars. During the Vietnam War, U.S. soldiers referred to the Vietnamese as “gooks,” “dinks” and “slopeheads” because it made it easier to kill them. In World Wars I and II, Germans were referred to as “Huns,” “Krauts”, and “Gerries,” and the Japanese as “Japs.” Soviet propaganda, in the closing months of the war, encouraged soldiers to brutalize German civilians and condoned the rape of at least half a million German women.

5 Environmental Ethics For the longest time, women were considered inferior to men – and still are in many cultures, not even allowed to go outside on their own without a male escort. Until 1920 (and even later in Quebec), they were not allowed to vote (too ‘irrational’) and were discouraged from going to college (except maybe to meet a husband). They were not allowed to own property or to get a bank loan, and most occupations were closed to them. Though we now have woman premiers and CEOs, women as a group earn far less than men and are greatly over-represented in service professions. They are also exploited sexually in a way that men rarely are. There are many other forms of discrimination in our and other societies – based on ethnicity, class, religion, sexual orientation, political views, and much more. These all reflect a view that it’s OK to treat certain people a certain way.

6 Environmental Ethics So what about the ‘environment,’ or what some cultures call ‘all my relations’? I want to break you into small groups to talk about the following questions and then report back your answers to the whole group: What it the predominant Canadian ethic towards the environment? (and do different groups have different ethics?) How does this manifest itself? Do other cultures view things differently? Will there be any changes in our environmental ethic as we move towards sustainability? YOUR IDEAS….

7 Environmental Policy Policy, regardless of what it’s applied to, is comprised of a)what we’re trying to change and b)how we’re trying to change (and ‘best practices’ from elsewhere). As we discussed before, when we talked about social change, policy development is one of the strategies for influencing behaviour change in institutions and individuals/ households. A concrete example is something I’ve been working on with my Work Opportunity student – campus sustainability. We did a study of three universities – VIU, UNBC, and Royal Roads – to see how they compared in making progress towards being more sustainable.

8 Environmental Policy We also wanted to see what lessons could be learned about overcoming the obstacles and barriers that inevitably accompany trying to make change and what factors seem to facilitate progress. Of the three, VIU has made the least progress. The others are definitely out in front. We looked at a number of areas: energy, water, food, waste, curriculum, governance, and others. Our basic assumption was that universities should model sustainability for their students and for the wider community.

9 Environmental Policy Questions For Discussion:
What would likely be the greatest obstacles to change? What would be some opportunities that the campus environment would provide (as well as possible external pressures)? What would be the most important foci for making change? What would you like to see?

10 The Same Could Be Applied to Municipal Environmental Policy
Questions For Discussion: What would likely be the greatest obstacles to change? What would be some opportunities that the municipal environment would provide (as well as possible external pressures)? What would be the most important foci for making change? What would you like to see?

11 21-11

12 Upon successfully completing this chapter, you will be able to
Characterize the influences of culture and world view on the choices people make Outline the nature, evolution, and expansion of environmental ethics in Western cultures Describe some basic precepts of economic theory and summarize their implications for the environment Compare the concepts of economic growth, economic health, and sustainability Explain the fundamentals of environmental economics, ecological economics, and natural accounting

13 Culture, World View, And The Environment

14 Culture, world view, and the environment
Environmental issues often highlight trade-offs between conflicting economic benefits and social or ethical concerns Both disciplines deal with what we value Our values affect our environmental decisions and actions In our culture, economic objectives usually trump ecological or social objectives. Any examples?

15 Culture and world view influence our perception of the environment
Our relationship with the environment depends on assessments of costs and benefits, some of which in turn can be influenced by denial, resistance, discounting, fear, and cognitive dissonance. Culture and worldview also affects this relationship Culture = knowledge, beliefs, values, and learned ways of life shared by a group of people World view = a person’s or group’s beliefs about the meaning, purpose, operation, and essence of the world Culture and worldview affect our perception of the environment and environmental problems. Examples?

16 Many factors shape our world views and perception of the environment (examples?)
Religion Communities Political ideology Economics Individual interests Vested interest = an individual with strong interests in the outcome of a decision that results in gain or loss for that individual

17 Mining in Mecca…? weighing the issues
Suppose a mining company discovered uranium near the Sacred Mosque at Mecca—or the site in Bethlehem believed to be the birthplace of Jesus or the Wailing Wall in Jerusalem. What do you think would happen if the company announced plans to develop a mine close to one of these sacred locations, assuring the public that environmental impacts would be minimal and that the mine would create jobs and stimulate economic growth? Also: why, in contrast with Europe and other parts of the world, is beauty valued so little in relation to commercial values? Why are ecosystems valued so little? 21-17

18 There are many ways to understand the environment
Traditional or indigenous ecological knowledge = the intimate knowledge of a particular environment possessed and passed along by those who have inhabited an area for many generations Medicinal properties of local plants Migration habits of local animals Geographic and microclimatic variations For more information, see The Earth’s Blanket by Nancy Turner.

19 Environmental Ethics 21-19

20 Environmental ethics Ethics = the study of good and bad, right and wrong Relativists = ethics varies with social context Universalists = right and wrong remains the same across cultures and situations What would be an example of each perspective? Ethical standards = criteria that help differentiate right from wrong The golden rule Utilitarian principle = something right produces the most benefits for the most people

21 The Atlantic seal hunt weighing the issues
No environmental issue identified with Canada is more emotionally charged than the Atlantic seal hunt. Each year environmentalists and animal activists mobilize to try to stop the hunt, arguing that too many seals are killed and that the methods used are inhumane. The hunters and supporters counter that they are continuing a way of life that has been practiced by Aboriginal people for at least 4000 years (and also Newfoundlanders and others), that it is their right to practice their traditional ways, and that the hunt is vital for the economic well-being and survival of their communities. What do you think? Who should decide which of these sets of values—animal rights or Aboriginal self-determination—should take precedence in this case? 21-21

22 Environmental ethics pertains to humans and the environment
Environmental ethics = application of ethical standards to relationships between human and non-human entities Should we conserve resources for future generations? Is is OK to destroy a forest to create jobs for people? Are humans justified in driving other species to extinction? Is it OK for some communities to be exposed to excess pollution?

23 Environmental ethics pertains to humans and the environment (cont’d)
Sustainable development = we must meet our current needs without compromising the availability of natural resources or the quality of life for future generations. What’s missing? In 2007 and 2008, a pipeline extension through Jasper National Park was started; it was approved in 1952 Would it have been approved today?

24 We extend ethical consideration to non-human entities
Why have we expanded our ethical concerns? Economic prosperity: more leisure time, less anxieties Science: interconnection of all organisms Non-western cultures often have broader ethical domains (e.g. First Nations, Hindus, Jains, and Buddhists, etc.) Three perspectives in Western ethics Anthropocentrism = only humans have rights Biocentrism = certain living things also have value Ecocentrism = whole ecological systems have value In the case of Linley Valley, one could argue that only humans count, and then only some humans.


26 Environmental ethics has ancient roots
People have questioned our relationship with the environment for centuries Environment as sacred: Aboriginal oral traditions Jain Dharma (Compassion for all life) Anthropocentric view or stewardship over nature? Christianity, Judaism, and Islam The Industrial Revolution intensified debate about our relationship with the environment, with the Romantic Revolution seeking to re-establish the value of nature. It was felt that contact with nature refreshed and ennobled people.

27 The Industrial Revolution inspired environmental philosophers
Transcendentalism = viewed nature as a direct manifestation of the divine Ralph Waldo Emerson Henry Thoreau Walt Whitman John Muir, and others More recently, two countries in the Western hemisphere have extended legal rights to ecosystems and their components: Bolivia and Ecuador.

28 Conservation and preservation arose at the start of the twentieth century
John Muir (right, with President Roosevelt at Yosemite National Park) had an eco-centric viewpoint

29 Conservation and preservation arose at the start of the twentieth century (cont’d)
Preservation ethic = holds that we should protect the natural environment in a pristine, unaltered state James Bernard Harkin was the first commissioner of Dominion Parks (eventually Parks Canada) Conservation ethic = holds that humans should put natural resources to use but also that we have a responsibility to manage them wisely Clifford Sifton was the first chairman of the Commission for the Conservation of Natural Resources

30 The land ethic and deep ecology enlarged the boundaries of the ethical community
Aldo Leopold – “The Land Ethic” in 1949 humans should view themselves and “the land” as members of the same community People are obligated to treat the land in an ethical manner based on mutual respect Deep ecology = humans are inseparable from nature Since all living things have equal value, they should be protected

31 Ecofeminism recognizes connections between the oppression of nature and women
Ecofeminism = the patriarchal structure of society is the root cause of both social and environmental problems A world view traditionally associated with women (interrelationships and cooperation) is more compatible with nature than that associated with men (hierarchies and competition) Ecofeminists note that women have also been traditionally associated with nature (e.g. Mother Nature, and the naming of hurricanes until relatively recently). God has, in the Abrahamic tradition, has always been seen as male.

32 Environmental justice seeks equitable access to resources and protection from environmental degradation Environmental justice = based on the principle that all people have the right: To live and work in a clean, healthy environment To receive protection from the risks and impacts of environmental degradation To be compensated for having suffered such impacts To have equitable access to environmental resources A good example is the campaign, led by Majora Carter, to create a “Sustainable South Bronx.”

33 Economics: Approaches and environmental implications
Conflict between ethical and economic motivations is a recurrent theme in environmental issues Environmental protection works in opposition to economic progress Arguments are made that environmental protection costs too much money, interferes with progress, and leads to job loss (short-term view) Environmental protection can be good for the economy both in terms of creating jobs, preserving needed resources (long-term view). As the organization Earth First! used to say, “there are no jobs on a dead planet!”

34 Economics studies the allocation of scarce resources
Economics = the study of how people decide to use scarce resources to provide goods and services in the face of demand for them Most environmental and economic problems are linked, including through the process you have studied with the LCAs – throughput: the transformation of raw materials into products, waste, and pollution. Root “oikos” (household) gave rise to both ecology and economics

35 Several types of economies exist today
Economy = a social system that converts resources into Goods: manufactured materials that are bought, and Services: work done for others as a form of business Subsistence economy = people get their daily needs directly from nature; they do not purchase or trade Capitalist market economy = buyers and sellers interact to determine prices and production of goods and services Centrally planned economy = the government determines how to allocate resources Mixed economy = governments intervene to some extent

36 Environment and economy are intricately linked
Economies receive inputs from the environment, process them in complex ways Open system = economies are open systems integrated with the larger environmental system of which they are part of Closed system = earth is a closed system, the material inputs Earth can provide are finite and so is the waste- absorbing capacity biosphere biosphere economy “Over-full world” 21-36

37 i.e. cyclical not linear


39 Environment and economy are intricately linked (cont’d)
Ecosystem services = essential services support the life that makes economic activities possible Soil formation Pollination Water purification Nutrient cycling Climate regulation Waste treatment These services have only recently become widely recognized, and still don’t have dollar values put on them.

40 Classical economics promoted the free market
Competition between people free to pursue their own economic self-interest will benefit society as a whole (Adam Smith, ) The market is guided by an “invisible hand” This idea is a pillar of free-market thought today It is also blamed for economic inequality Critics think that market capitalism should be regulated by government where it conflicts with the public interest

41 Neoclassical economics considers price, supply, and demand

42 Neoclassical economics considers price, supply, and demand (cont’d)

43 Cost-benefit analysis is a useful tool
Cost-benefit analysis = the costs of a proposed action are compared to the benefits that result from the action If benefits > costs: pursue the action Not all costs and benefits can be identified or quantified Marginal benefit and cost curves determine an “optimal” level of resource use or pollution mitigation

44 Aspects of neoclassical economics have profound implications for the environment
Assumptions of neoclassical economics: Resources are infinite or substitutable Costs and benefits are internal to the production and consumption process (not!) Long-term effects are discounted – i.e. “a bird in the hand is worth two in the bush.” Growth is good and necessary!

45 Aspects of neoclassical economics have profound implications for the environment (cont’d)
Assumption: Resources are infinite Economic models treat resources as substitutable and interchangeable A replacement resource will be found But, Earth’s resources are limited Nonrenewable resources can be depleted Renewable resources can also be depleted Moreover, some ‘resources,’ such as biodiversity, clean air and water, and a stable climate cannot be substituted for.

46 Aspects of neoclassical economics have profound implications for the environment (cont’d)
Assumptions: Long-term effects should be discounted A future event counts less than a present one Discounting = short-term costs and benefits are more important than long-term costs and benefits Policymakers ignore long term consequences of our actions Economic growth is necessary to maintain employment and social order Promoting economic growth creates opportunities for poor to become wealthier Progress is measured by economic growth

47 Aspects of neoclassical economics have profound implications for the environment (cont’d)
Assumption: Costs and benefits are internal Costs and benefits are experienced by the buyer and seller alone Do not affect other members of the society or other species or ecosystems Pricing ignores social, environmental or economic costs Externalities = costs or benefits involving people other than the buyer or seller External costs = cost borne by someone not involved in a transaction Human health problems Resource depletion Hard to account for and eliminate

48 Is the growth paradigm good for us?
More and bigger is better The dramatic rise in per-person consumption has severe environmental consequences Critics fear that economic growth will destroy the ecological system on which we all depend ECOSPHERE ECONOMY

49 Economists disagree on whether economic growth is sustainable
Are endless improvements in technology possible? Ecological economists argue that civilizations do not overcome their environmental limitations in the long run Could we continue this activity forever and be happy with the outcome? Environmental economists argue that economies are unsustainable if population growth is not reduced and resource use is not made more efficient

50 Economists disagree on whether economic growth is sustainable (cont’d)
Steady-state economy = economies that do not grow and do not shrink but rather are stable and mirror natural ecological systems Will not evolve on its own from a capitalist market system Critics assume that an end to growth means an end to a rising quality of life; is this necessarily true? Requires reforms

51 We can measure economic progress differently
Gross Domestic Product (GDP) = total monetary value of final goods and services produced Does not account for nonmarket values Not necessarily desirable economic activity A large oil spill would increase GDP, as would people dying of cancer from smoking or poor diets.

52 We can measure economic progress differently (cont’d)
GPI: An alternative to the GDP Genuine Progress Indicator (GPI) = differentiates between desirable and undesirable economic activity Positive contributions (i.e. volunteer work) not paid for with money are added to economic activity Negative impacts (crime, pollution) are subtracted


54 Although GDP of Alberta has increased, GPI shows a decline

55 Other Alternatives to GDP
The Kingdom of Bhutan a number of years ago adopted what they called “Gross National Happiness,” in which every national decision was supposed to be based on making people better off. The New Economics Index has created the “Happy Planet Index” to measure how happy people in different countries relative to their ecological footprint. The UN also has the Gender Empowerment Index (GEI) and other measures for determining how well off people are. [add others]

56 We can give ecosystem goods and services monetary values
Economies receive from the environment vital resources and ecosystem services Ecosystem services are said to have nonmarket values, values not usually included in the price of a good or service Existence values Option values Aesthetic values Scientific values Educational values Cultural values Use values 21-56

57 Markets can fail Market failure occurs when markets do not account for: the environment’s positive effects on economies the negative effects of economic activity on the environment or people Government intervention counters market failure Laws and regulations Green taxes = penalize harmful activities Economic incentives to promote conservation and sustainability

58 Corporations are responding to sustinability concerns
Industries, businesses, and corporations can make money by “greening” their operations Corporate sustainability has gone mainstream Be careful of greenwashing, where consumers are misled into thinking companies are acting sustainably

59 Conclusion Corporate responsibility, alternative ways of measuring growth, and the valuation of ecosystem goods and services offer different, but potentially complementary, economic approaches to environmental protection Environmental ethics has expanded people’s ethical consideration Distributional equity = equal treatment for all True income is sustainable income If economic welfare can be enhanced in the absence of growth, economies and environmental quality can benefit from one another

60 Environmental Policy (Chapter 22?)

61 Upon successfully completing this chapter, you will be able to
Describe environmental policy and assess its societal context Identify the institutions important to Canadian environmental policy Recognize major Canadian environmental laws List the institutions involved with international environmental policy Categorize the different approaches to environmental policy Describe how nations handle transboundary issues

62 Central Case: The Death And Rebirth Of Lake Erie
“When you get ready to vote, make sure you know what you’re doing.” – Bob Hunter, Journalist and Co-founder of Greenpeace 1970s: Lake Erie “died” of pollution International effort brought Lake Erie back using touch legal restrictions on both sides of the border Canada-U.S. Great Lakes Water Quality Agreement 42 Areas of Concern with tailored Remedial Action Plans One example of how people and organizations work together

63 Environmental policy Policy = a formal set of general plans and principles to address problems and guide decisions Public Policy = policy made by governments that consists of laws, regulations, orders, incentives, and practices Environmental Policy = pertains to human interactions with the environment Regulates resource use or reduce pollution


65 Environmental policy addresses issues of equity and resource use
The tragedy of the commons = the idea that a resource held in common that is accessible to all and is unregulated will eventually become overused and degraded Free Riders = reducing pollution tempts any one person to cheat Private voluntary efforts are less effective than mandated efforts External Cost = harmful impacts result from market transaction but are borne by people not involved in the transaction

66 Many factors hinder implementation of environmental policy
Environmental laws are challenged, derided, and ignored Environmental policy involves government regulations Businesses and individuals view laws as overly restrictive and unresponsive to human needs Most environmental problems develop gradually Human behavior is geared toward short-term needs News media have short attention spans Politicians often act out of their own short-term interest

67 Environmental goals and best practices can be promoted by voluntary initiatives
Voluntary guidelines Sector-based and self-enforced Canadian mining industry has undertaken some voluntary initiatives ISO standards for environmental management Promote consistency and best practices in environmental management 22-67

68 Environmental goals and best practices can be promoted by voluntary initiatives
Voluntary guidelines = sector-based and self-enforced policing ISO series was designed to promote consistency and best practices in environmental management Are they as effective as legislation?

69 Canadian environmental policy arises from all levels of government
Canadian Environmental Protection Act (1999) Federal government shares responsibility for environmental protection Provinces/territories (principal responsibility) Aboriginal Municipal/local governments Canadian Council of Ministers of the Environment (CCME) 22-69

70 Canadian Environmental Law And Policy

71 Canada’s environmental policies are influenced by our neighbour
Influenced by the U.S. in its environmental management approach because of: The trading relationship (e.g. NAFTA) The environmental resources we share Canada-U.S. binational management of transboundary pollution has been characterized by cooperation and dialogue

72 Legal instruments are used to ensure that environmental goals are achieved
Acts = laws, or statutes, proposed and voted upon by the Parliament Regulations = specific legal instruments, a detailed set of requirements established by governments to allow them to enforce acts Agreements = enforceable or voluntary; with the goal of streamlining, clarifying, or harmonizing the administration of environmental legislation Permits = document that grant legal permission to carry out an activity

73 Legal instruments are used to ensure that environmental goals are achieved (cont’d)
Federal (e.g. Canadian Environmental Protection Act, Fisheries Act, Canadian Wildlife Act) Provincial (e.g. limits on discharging harmful substances, require permits or approvals ) Aboriginal governments (e.g. resource extraction on aboriginal lands) Municipal/local governments (e.g. water and sewage, noise, waste, zoning, pesticide use) International agreements (e.g. U.N. Convention on International Trade in Endangered Species)

74 Government and ENGOs work together on environmental issues
Stakeholder = any person or group that has an interest in, or might be affected by, the outcome of a particular undertaking ENGOs = environmental nongovernmental organizations Round table = a multi-stakeholder working group established to consult on a particular issue

75 Different environmental media require different regulatory approaches
Water law in Canada developed from two historical legal concepts: Riparian law = anyone who has legal access to the water’s edge has the legal right to withdraw water from the resource Prior appropriation = first come, first right principle, by which one’s right to withdraw water is established by historical precedent

76 Environmental policy has changed with the society and the economy
1780s to 1800s: frontier ethic to tame and conquer the wilderness 1800s: regulate resource use, conservation and preservation ethics 1900s: immigrants encouraged to convert Prairie grasslands into farms; soil conservation Late 1900s: policy responded to pollution and environmental crises (Silent Springs, 1962) 2000s: public enthusiasm for environmental protection

77 The social context for environmental policy changes over time
Factors that allowed advances in environmental policy Wide evidence of environmental problems People could visualize policies to deal with problems The political climate was ripe, with a supportive public and leaders who were willing to act Economic confidence (willingness-to-pay transition)




81 The concept of sustainable development now guides environmental policy
Sustainable development = “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” 1987, United Nations Commission on Environment and Development Has not been without controversy Too vague prone to misuse and misinterpretation Contradiction in terms

82 Scientific monitoring and reporting helps with environmental policy decisions
State-of-the-environment reporting (SOER) = the collection, organization, and reporting of information that can be used to measure and monitor changes in the environment Indicators = values that can be measured and in comparison to which changes can be assessed

83 Scientific monitoring and reporting helps with environmental policy decisions (cont’d)
Purpose of SOER What is happening in the environment? Why is it happening? Why is it significant? What is being done about it? Is this response sustainable?

84 Scientific monitoring and reporting helps with environmental policy decisions (cont’d)
Environment Canada takes the lead role on SOER Other federal-levels Fisheries and Oceans Canada Parks Canada Many municipalities also produce SOE reports Many corporations have adopted reporting as well

85 SOER presents organizational challenges
So much environmental information that can be measured and reported How to sub-divide the information Pressure–state–response (PSR) model = based on establishing linkages and causalities Cause-and-effect feedback loops


87 International Environmental Law and Policy

88 International Environmental Law and Policy
International issues can be addressed through creative agreements Customary law = practices or customs held by most cultures Conventional law = from conventions or treaties Montreal Protocol: nations agreed to reduce ozone-depleting chemicals Kyoto Protocol: reduces fossil fuel emissions causing climate change (Canada withdrew in 2011)

89 Several organizations help shape international environmental policy
The United Nations helps nations understand and solve environmental problems The European Union seeks to promote Europe’s unity and economic and social progress The World Trade Organization has authority to impose financial penalties and can shape environmental policy (has interpreted some environmental laws as unfair barriers to trade) The World Bank funds economic development including some unsustainable projects

90 Several organizations help shape international environmental policy (cont’d)
Organization of the Petroleum Exporting Countries (OPEC) is concerned some countries may impose policies that are harmful to those who rely on fossil fuels for a substantial part of their income International ENGOs provide funding, expertise, and research to environmental problems in diverse ways

91 Approaches to Environmental Policy

92 Science plays a role in policy, but it can be politicized
Effective policy decisions are informed by scientific research Sometimes policymakers ignore science Cod fisher in Atlantic Canada for example They let political ideology determine policy Scientists at government agencies have had their work suppressed or discredited Their jobs were threatened When taxpayer-funded research is suppressed or distorted for political ends, everyone loses

93 Command-and-control policy has improved our lives, but it is not perfect
Command-and-control approach: environmental policy sets rules or limits and threatens punishment for violators Heavy-handed Alternative approaches involve using economic incentives to encourage desired outcomes and use market dynamics to meet goals Most current environmental laws Have resulted in safe, healthy, comfortable lives

94 Command-and-control policy has improved our lives, but it is not perfect (cont’d)
Drawbacks of command-and-control Government actions may be well-intentioned but not informed Interest groups–people seeking private gain–unduly influence politicians Citizens may view policies as restrictions on freedom Costly and less efficient in achieving goals

95 Economic tools also can be used to achieve environmental goals
Subsidy Green taxes and “polluter pays” Permit trading

96 Economic tools also can be used to achieve environmental goals (cont’d)
Subsidy = a government giveaway of cash or resources to encourage a particular activity Have been used to support unsustainable activities Could subsidize environmentally sustainable activities instead

97 Economic tools also can be used to achieve environmental goals (cont’d)
Green taxes = taxes on environmentally harmful activities Polluter pays principle = the price of a good or service includes all costs, including environmental degradation Gives companies financial incentives to reduce pollution Costs are passed on to consumers

98 Economic tools also can be used to achieve environmental goals (cont’d)
Permit trading = government-created market in permits Businesses buy, sell, trade these permits Emissions trading system = government-issued permits for an acceptable amount of pollution and companies buy, sell, or trade these permits with other polluters Cap-and-trade system = a party that reduces its pollution levels can sell this credit to other parties Pollution is reduced overall, but does increase around polluting plants

99 Market incentives are being tried widely on the local level
Charges for waste disposal according to the amount of waste they generate Rebates to residents who buy water-efficient toilets Discounts from power companies for using high-efficiency light bulbs and appliances Rebate programs aimed at providing rewards for behavioural changes

100 Eco-labelling gives some choice back to the consumer
Ecolabelling = tells consumers which brands use environmentally benign processes Consumers provide businesses with a powerful incentive to switch to more sustainable processes Socially responsible investing = entails investing only in companies that have met certain criteria

101 Conclusion Environmental policy is a problem-solving tool that uses science, ethics and economics Conventional command-and-control approach of legislation and regulation are most common Environmental issues often overlap political boundaries Approaches to environmental management are currently emerging in Canada

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