Economics, Environment, and Sustainability G. Tyler Miller’s Living in the Environment 14th Edition Chapter 26

Key Concepts Types of economic systems Economics and resource management Monitoring economic and environmental progress Full-cost pricing Effect and reduction of poverty Shifting to environmentally sustainable economies

Economic Resources Capital Natural resources Human resources Physical resources

Economic Systems Pure free-market economic systems Demand, supply and price Market price equilibrium point Marginal costs and benefits Price inelasticity Government involvement in markets

Neoclassical vs. Ecological Economists Differing views of natural resources Differing views on economic growth Effective property rights “Eco-economy”

Ecological Economics Fig. 26-4 p. 587

Economic Growth Economic growth Environmentally sustainable economic development Fig. 26-5 p. 588

Economics of Pollution Control Optimum level of pollution Cost-benefit analysis (CBA) Green taxes and fees

Monitoring Environmental Progress Gross domestic product (GDP) Per capita GDP Limits of GDP and Per capita GDP Genuine progress indicator (GPI) Index of Sustainable Economic Welfare Materials balance measurements

Harmful External Costs and Full-Cost Pricing Internal costs External costs External benefits Positive and negative externalities Full-cost pricing

Improving Environmental Quality and Shifting to Full-Cost Pricing Government subsidies and tax breaks Green taxes (trade-offs: Fig. 26-9 p. 595) Environmental tax reform Innovation-friendly regulations Tradable pollution and resource-use rights Market forces

Tradable Environmental Permits: Trade-offs Fig. 26-12 p. 597

Reducing Poverty to Improve Environmental Quality and Human Well-Being Premature death and health problems Environmental impact of poverty Role of the World Bank Fig. 26-14 p. 599 Poor help themselves

Making the Transition to Environmentally Sustainable Economies Mimic natural systems Sunset businesses Eco-friendly businesses Improve public awareness Refer to Case Study p. 601-603