Prepared for class discussion By Prof.S.

Suryanarayanan

Conventional economics: Market based economic system; free flow of product and money between households and business. Households pay to buy products; firms use money to buy factors of production ( natural, human,financial,and manufactured resources). Unlimited economic growth independent of earths life support system; dependent on human ingenuity. Environment is a subsystem of economic system

Environmental ( ecological ) economy: Economic system is subsystem of environment

Natural Capital ( air,water,land,soil,biodiversity,energy resources)

Economic system( productionconsumption)

Pollution and waste---recycle and reuse

Characteristic

Unsustainable economic Environmentally growth sustainable economic development Quantity Not very important Inefficient ( high waste ) High Non renewable Discarded Clean up ( output reduction) Risk-benefit analysis Quality Very important Efficient ( low waste ) Low Renewable Recycled, reused or composted Prevention ( input reduction) Prevention and precaution

Production emphasis Natural resources Resources productivity Resource throughput Resource type Resource fate Pollution control Guiding principles

GDP/ GNI key economic indicator; compares economic output of different nations.

GPI a new concept, Genuine Progress Indicator that includes human well being and environmental quality.

Full cost pricing ( environmental pricing ) Full cost= internal cost+ external cost Internal costall direct and indirect cost to produce goods External costcosts incurred resulting in harmful effects from depletion and degradation of natural resources ,pollution of air and water and contribution to climate change. Challenges in environmental pricing Prices of goods will go up How to do accounting Government intervention is important

Economics: Reward earth sustaining behaviour Penalise( more taxes) earth endangering behaviour Tax pollution and waste instead of wages and profits Use full cost pricing Sell more services instead of more things Do not deplete natural capital Reduce poverty Ecology and population Mimic nature Preserve biodiversity Repair ecological damage Stabilize population by reducing fertility

Resource use and pollution Reduce resource use and waste by refusing, reducing,reusing,and recycling Improve energy efficiency Rely more on renewable solar rand geo thermal energy Shift from carbon based ( fossil fuel) economy to a renewable based economy

The shifting can happen only with political will.

Challengepoliticians interested in short term problems; next election is the limiting factor } Guidelines in making Environmental Policies: 1. Humility principle- let us recognise our understanding of nature is limited; learn more 2. Reversibility principle-unwise to do anything disturbing biodiversity that is irreversible in human time scale. 3. Precautionary principle-safer activities to protect human health and safety even if conclusive evidence not available. 4. Prevention principle -activities that prevent problems 5. Integrative principle-take decisions that involve integrated solutions. 6. Environmental justice principle- fair treatment and meaningful involvement of all people
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Become informed on issues Respect all life in the planet Understand how works and sustains itself Make your views known to people around you Understand and evaluate changing environmental world view. Learn to evaluate beneficial and harmful consequences of our choices of lifestyle. Represent to authorities Contribute time and money to the cause. I know I care Ill act Support NGOs and campaigns working on environmental issues.

Should we care about future generations? --- Discussion. Ethical obligation The earth provides enough to satisfy every persons need but not every persons greed. Mahatma Gandhi

As the planet s most important species, we are in charge Resources are unlimited

All species are important and we are not in charge Earths resources are limited and should not be wasted. Some forms of economic growth are environmentally beneficial and some are environmentally harmful Our success depends on learning how the earth sustains itself and integrating such scientific lessons from nature ( ENVIRONMENTAL WISDOM ) into the ways we think and act.

All economic growth is good and is unlimited Our success depends on managing the worlds life support systems for our benefit.

Reference: Environmental Science by G Tyler Miller Chapter 2