1. Environmental Problems, economics and cows. Chapter 1

2. Exponential growth  You’ve probably seen the equation used in calculating compound interest:  FV= Future Value  PV= Present value  i= Interest rate  n= Number of terms (usually years)

3. Calculate:  If you owe $500 on a credit card that has a 13.5% interest rate, how much more will you owe after a year?  $567.5  If you owe $150,000 to the bank on a loan with 3.75% interest, how much will you have paid after 30 years?  $452,620 ($1257/month payment)

4. Economics of life  Not unlike interest compounding, the populations of organisms tend to grow at an exponential rate.  Between 1950 and 2005 the world population increased from 2.5 billion to 6.5 billion.

5. Haves vs. Have nots  Regardless of the great (8-fold) economic growth between 1950 and 2000,wealth and resources are not evenly distributed.  Literally, 1 of 2 of the world’s workers tries to live on less than $2 a day. (Data from World Bank and UN).

6. Survival  The problem lies in that in order to survive, many of the poor must deplete and degrade local forests, grasslands, and soils and wildlife.

7. Degrade? But…How?  How do people in poverty stricken areas degrade their environment? –Bushmeat –Cutting wood for fuel –Clearing land for agriculture –Poor crop choice –“Feast & Famine” lifestyle.

8. Sustainability  None of these practices is sustainable.  Sustainability is the ability of the earth’s systems, including human economies, to survive and adapt over time.  Sustainability is only achieved through careful management of the earth’s natural resources.

9. Natural Capital  Natural Capital refers to the natural resources and services that help keep us and other species alive, and support our economies.  For most people, capital is wealth that is used to sustain a business and generate more wealth.  Natural Capital is different, but functions the same.

10. Investing in nature…  Smart people invest capital to provide themselves with financial income.  Smart societies invest in natural capital to provide themselves with biological income. –This includes: –Air purification –Water purification –Food production –Pollination –Waste treatment –Climate control –Soil renewal (sustainable agriculture)

11. Natural Capital  Natural Capital can be summed up as the combination of Natural resources + Natural Services. Natural Capital = + Natural Resources Air Soil Land Life Minerals Renewable energy NonRenew. energy Natural Services Air Purification Water Purification Soil Renewal Food Climate control Pest control

12. Environmentally Sustainable  An environmentally sustainable society meets the basic resource needs of its people indefinitely without degrading or depleting the natural capital that supplies these resources.