1. Economics, Politics and the Environment

2. Economic Systems Vary, But All Depend on Natural Capital
Goods and services
Economic system
Social institution
Free-market system
Supply and demand
Natural capital
Resources provided by the earth’s natural processes
Human capital
People’s physical and mental talents
Manufactured capital
Tools and materials

3. Cost-Benefit Analysis Is a Useful but Crude Tool
Cost-benefit analysis follows guidelines
State all assumptions used
Include estimates of the ecological services
Estimate short-and long-term benefits and costs
Compare the costs and benefits of alternative courses of action
There are always uncertainties

4. We Can Apply the Principle of Full-Cost Pricing
Market price
Does not include indirect, external, or hidden costs
For example: What are the direct and indirect costs of a car?
Full-cost pricing
Includes estimated costs of harmful environmental and health effects of production

5. Environmental Economic Indicators Could Help Reduce Our Environmental Impact
Measurement and comparison of the economic output of nations
Gross domestic product (GDP)
Per capita GDP
Newer methods of comparison
Genuine progress indicator (GPI)
GDP plus estimated value of beneficial transactions

6. Government Can Serve Environmental and Other Public Interests
Environmental policy
Policy life cycle – four stages
Recognition
Formulation
Implementation
Control
There needs to be a balance between government intervention and free enterprise
Government is the best mechanism to deal with:
Full-cost pricing
Market failures
The tragedy of the commons
Policies
Set of laws and regulations

7. Democracy Does Not Always Allow for Quick Solutions
Special-interest groups pressure the government
Profit-making organizations
Nongovernmental organizations (NGOs)
Politicians focus on problems with short- term effects
Democracy
United States is a constitutional democracy
Three branches of government
Legislative
Executive
Judicial

8. How Democratic Government Works: The U.S. Model
Three branches
Legislative branch
Executive branch
Judicial branch
Develop and implement policy
Laws, regulation, and funding
Lobbying

9. Developing Environmental Policy Is a Controversial Process
Funding needed
Regulations and rules needed to implement the law
Environmental regulatory agencies play an important role
Regulated businesses try to have their members appointed to regulatory agency
Individuals matter
2007 – Chinese citizens opposed construction of a chemical plant
Mobile phone text messaging spread the word
At a fundamental level, all politics is local

10. Environmental Law Forms the Basis for Environmental Policy
Body of laws and treaties that broadly define what is acceptable environmental behavior
Most environmental lawsuits are civil suits
Injunction – court hearing
Class action suit – civil suit filed by group
Negligence – damage caused by deliberately acting unreasonably

11. Environmental Lawsuits Are Difficult to Win
Legal standing
Has the plaintiff suffered health or financial problems?
Very expensive
Public interest law firms
Cannot recover attorney’s fees
Plaintiffs must establish that harm has been done
Statutes of limitation
Limit length of time a plaintiff can sue
Appeals – years to settle
Strategic lawsuits against public participation (SLAPPs)

12. Case Study: U.S. Environmental Laws
Types of legislation
Set standards for pollution levels
Screen new substances for safety
Encourage resource conservation
Protect spaces and ecosystems
Require evaluation of activity proposed by federal agency
Environmental impact statement
Have been highly effective
Especially in pollution control
Since 1980, well- organized forces against existing environmental laws
Environmentalist s primarily bring bad news to the public

13. Citizen Environmental Groups Play Important Roles
Nonprofit nongovernmental organizations (NGOs) working at all levels
International, national, state, and local
Small grassroots groups to world-wide organizations
Global public policy networks
Focus on particular environmental problems
Shifting resources to publicizing innovation

14. Case Study: The Natural Resources Defense Council
NRDC
Goes to court to stop environmentally harmful practices
Informs and organizes millions of environmental activists to take actions to protect the environment
Website, magazines, and newspapers
BioGems Network
Informs subscribers of environmental threats
2005 – blocked the EPA from finalizing “blending” proposal for untreated sewage
2001 – protect vast area of Great Bear Rainforest from logging

15. Grassroots Environmental Groups Bring about Change from the Bottom Up
Global sustainability movement
Citizen-based
Conservation land trusts
Property owners agree to protect land from development and harmful activities
Nonviolent, nondestructive tactics

16. We Can Develop Stronger International Environmental Policies
United Nations – most influential
Family of global policy-making organizations
Other influential groups
The World Bank, etc.
U.N. Conference of Environment and Development – Agenda 21
Rio+20 Earth Summit Conference in 2012

17. Corporations Can Play a Key Role in Environmental Sustainability
Corporations have the profits to provide funding
Eco-efficiency
Finding ways to create economic value with less harmful impacts
Nature Conservancy program
Help companies include monetary value of natural capital in goals and strategies