2 The Individual vs. Social Welfare Common resourcesIf we all use the resources without rules and regulations, they will get used up and less will be available for everyoneIf we divide up the resources so that everyone is responsible for a share, then the resources last longer and everyone has enoughSome person or group has to take responsibility…Think of the sheep
3 Economics of the Environment: Supply and Demand “The greater the demand for a limited supply of a [resource], the more that [resource] is worth.”In times of plenty, stuff is cheap…when things are scarce, stuff becomes expensive
4 Economics of the Environment: Cost and Benefits When determining how much money to put into a project, the benefits of the project must be weighed against the costsThis is called a “cost-benefit analysis”Costs usually end up being paid by tax dollarsThe tax payers usually can vote between the more expensive route that is most environmentally friendly…or the lesser expensive route that is usually not as environmentally friendly
5 Economics of the Environment: Risk Assessment Cost-benefit analysis involves risk assessment by the consumers or tax payersThey must be given an accurate depiction of the risks involved which doesn’t always happenOne survey showed people believed Nuclear Power to be super risky for the community but experts place the risk value below that of riding a bicycle and getting into an accident
6 Developed Nations Higher average income per person Slower population growthDiverse industrial economiesStronger social support systems, ie: social securityEX: US, Canada, Japan, Western Europe
7 Developing Nations Lower average income per person Simple and agriculture-based economyRapid population growth
8 Middle-Income Countries Somewhere betweenEX: Mexico, Brazil, Malaysia
9 Population and Consumption Overpopulation problems:Forests stripped bareTopsoil exhausted leads to less agricultureAnimals go extinctMalnutrition, starvation and diseasePopulations grow very quickly in underdeveloped nationsFood production, education and job opportunities cannot keep up with the populationLess than half of the 4.5 billion people in developing nations have enough food, safe drinking water and healthy sanitation
10 Life is different in Developed Nations Pollution controls improve every yearPopulation grows more slowlyHOWEVER:Developed nations use about 75% of the Earth’s resourcesDeveloped nations only account for 20% of the Earth’s total populationConsumption of resources in developed nations leads to more waste and pollution per person than underdeveloped nationsEcological footprint: “…the productive area of Earth needed to support one person in a particular country.”Accounts for crop space, grazing, forest products, housing and ocean area as well as forest area needed to absorb the air pollution created from the production of these productsEx: USA – 30 acres per person, INDIA – 2.5 acres per person
11 SustainabilitySustainability: “…the condition in which human needs are met in such a way that a human population can survive indefinitely.”As technology changes and civilizations change we must all change our usage of resources in order to sustain the human populationDeveloped countries overuse resources… by A LOTUnderdeveloped countries do as well in a different wayCreating a planet where every person has what they need is a long long way from where we are now…but it’s not unachievable! We just all need to be aware of how our actions impact the EarthThink Globally, act locally!
13 Homework Check Chapter 1 section 2 Questions 1, 2, 4 Describe three differences between developing and developed nations using the examples in Table 3. Would you classify Mexico as a developing nation? Explain.Explain why critical thinking is an important skill in environmental science.4) The law of supply and demand is a simplification of economic patterns. What other factors might affect the cost of a barrel of oil?