The Environment and Development Chapter 10

Group members O ZAHEER U DIN QADIR O MUHAMMAD SUFIAN O BILAL NAZIR QADRI O ASAD O NADEEM ASHRAF O AYESHA AKHTAR 10-2

Economics and the Environment O Environmental issues affect, and are affected by, economic development O Poverty and ignorance may lead to non- sustainable use of environmental resources 10-3

Environment and Development: The Basic Issues O Sustainable development and environmental accounting 10-4

Environment and Development: The Basic Issues 10-5 Sustainable net national product is: Where NNI* is sustainable national income GNI is Gross national income D m is the depreciation of manufactured capital assets D n is the depreciation of environmental capital

Environment and Development: The Basic Issues 10-6 Alternatively, sustainable net national product is: Where NNI*, GNI, D m, and D n are as before Ris expenditure needed to restore environmental capital Ais expenditure required to avert destruction of environmental capital

Environment and Development: The Basic Issues O Sustainable development and environmental accounting O Population, resources, and the environment O Poverty and the environment O Growth versus the environment O Rural development and the environment 10-7

Environment and Development: The Basic Issues (cont’d) O Urban development and the environment O The global environment 10-8

The Scope of Environmental Degradation: A Brief Statistical Review O Environmental problems have consequences both for health and productivity 10-9

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Table 10.1 (cont’d) 10-11

Rural Development and the Environment: A Tale of Two Villages O Representative African village O Representative South American village 10-12

Traditional Economic Models of the Environment O Privately owned resources 10-13

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Traditional Economic Models of the Environment O Privately owned resources O Common property resources 10-16

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Traditional Economic Models of the Environment O Privately owned resources O Common property resources O Public goods and bads: regional environmental degradation and the free- rider problem O Limitations of the public goods framework 10-18

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Urban Development and the Environment O The ecology of urban slums O Industrialization and urban air pollution 10-20

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Urban Development and the Environment O The ecology of urban slums O Industrialization and urban air pollution O Problems of congestion and the availability of clean water and sanitation 10-22

The Need for Policy Reform O The recognition that action to reduce environmental hazards has been insufficient is now widespread O However, budgets are limited O Better pricing policies would improve matters O Inclusion of women in the design of environmental policy is important 10-23

The Global Environment: Rain Forest Destruction and Greenhouse Gases O Many scientists are alarmed by recent evidence regarding ozone depletion and global warming O Economists also are concerned with the costs of global climate change O The solutions seem to involve both LDCs and industrialized countries 10-24

Policy Options in Developing and Developed Countries O What LDCs can do O Proper resource pricing O Community involvement O Clearer property rights and resource ownership O Improved economic alternatives for the poor O Improved economic status of women O Industrial emissions abatement policies 10-25

Policy Options in Developing and Developed Countries (cont’d) O How developed countries can help LDCs O Trade policies O Debt relief and debt for nature swaps O Development assistance O What developed countries can do O Emissions controls O R&D O Import restrictions 10-26

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