Ethics and economics. Ethics. Both disciplines deal with what we value. Our values affect our environmental decisions and actions

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1 Ethics and economics Both disciplines deal with what we value Our values affect our environmental decisions and actions Ethics Ethics = the study of good and bad, right and wrong - Relativists = ethics varies with social context - Universalists = right and wrong remains the same across cultures and situations Ethical standards = criteria that help differentiate right from wrong - Classical standard = virtue - The golden rule - Utility = something right produces the most benefits for the most people 1

2 Environmental ethics Environmental ethics = application of ethical standards to relationships between human and non-human entities - Hard to resolve; depends on the person s ethical standards - Depends on the person s domain of ethical concern Should we conserve resources for future generations? Is is OK to destroy a forest to create jobs for people? Should humans drive other species to extinction? Is it OK for some communities to be exposed to excess pollution? We have expanded our ethical consideration To include animals, communities, nature 2

3 Expanding ethical concern Why have we expanded our ethical concerns? - Economic prosperity: more leisure time, less anxieties - Science: interconnection of all organisms Non-western cultures often have broader ethical domains Three perspectives in Western ethics - Anthropocentrism = only humans have rights - Biocentrism = certain living things also have value - Ecocentrism = whole ecological systems have value - Holistic perspective, stresses preserving connections Western ethical expansion 3

4 The preservation ethic Unspoiled nature should be protected for its own inherent value John Muir (right, with President Roosevelt at Yosemite National Park) had an ecocentric viewpoint The conservation ethic Use natural resources wisely for the greatest good for the most people Gifford Pinchot had an anthropocentric viewpoint 4

5 The land ethic Healthy ecological systems depend on protecting all parts Aldo Leopold believed the land ethic changes the role of people from conquerors of the land to citizens of it Environmental justice (EJ) Environmental justice = the fair and equitable treatment of all people regarding environmental issues The poor and minorities are exposed to more pollution, hazards, and environmental degradation 75% of toxic waste landfills in the southeastern U.S. are in communities with higher racial minorities 5

6 Environmental justice and Native Americans From 1948 to the 1960s, Navajo miners were not warned of radiation risks, nor provided protection by the industry or the U.S. government Economics Friction occurs between people s ethical and economic impulses Is there a trade-off between economics and the environment? Generally, environmental protection is good for the economy Economics studies how people use resources to provide goods and services in the face of demand Most environmental and economic problems are linked 6

7 Types of modern economies Economy = a social system that converts resources into Goods: manufactured materials that are bought, and Services: work done for others as a form of business Subsistence economy = people get their daily needs directly from nature; they do not purchase or trade Capitalist market economy = buyers and sellers interact to determine prices and production of goods and services Centrally planned economy = the government determines how to allocate resources Mixed economy = governments intervene to some extent Government intervenes in a market economy Even in capitalist market economies, governments intervene to: Eliminate unfair advantages Provide social services Provide safety nets Manage the commons Mitigate pollution 7

8 Conventional view of economics Conventional economics focuses on production and consumption Ignores the environment The environment is an external factor of production Environmental view of economics Human economies exist within, and depend on, the environment Without natural resources, there would be no economies 8

9 Environmental systems support economies Ecosystem services = essential services support the life that makes economic activities possible *Soil formation *Pollination *Water purification *Nutrient cycling *Climate regulation *Waste treatment Economic activities affect the environment Deplete natural resources Produce too much pollution Is the growth paradigm good for us? More and bigger is better The dramatic rise in per-person consumption has severe environmental consequences 9

10 Is economic growth sustainable? Affluenza = material goods do not always bring contentment Uncontrolled economic growth is unsustainable - Technology can push back limits, but not forever - More efficient resource extraction and food production perpetuates the illusion that resources are unlimited it Many economists believe technology can solve everything A steady state economy As resources became harder to find, economic growth slows and stabilizes (John Stuart Mill, ) We must rethink our assumptions and change our way of economic transactions This does not mean a lower quality of life Economies are measured in various ways Gross Domestic Product (GDP) = total monetary value of final goods and services produced Does not account for nonmarket values Pollution increases GDP 10

11 GPI: An alternative to the GDP Genuine Progress Indicator (GPI) = differentiates between desirable and undesirable economic activity - Positive contributions (i.e. volunteer work) not paid for with money are added to economic activity - Negative impacts (crime, pollution) are subtracted In the U.S., GDP has risen greatly, but not GPI Valuing ecosystems goods and services Our society mistreats the very systems that sustain it - The market ignores/undervalues ecosystem values Nonmarket values = values not included in the price of a good or service 11

12 QUESTION: Review An ecocentric worldview would consider the impact of an action on? a) Humans only b) Animals only c) Plants only d) All living things e) All nonliving things QUESTION: Review Which ethic holds that healthy ecosystems depend on the protection of all their parts? a) Preservation ethic b) Land ethic c) Conservation ethic d) Deep ecology e) Biocentrism 12

13 QUESTION: Review Which of the following is an ecosystem service? a) Water purification in wetlands b) Climate regulation in the atmosphere c) Nutrient cycling in ecosystems d) Waste treatment by bacteria e) All of the above QUESTION: Review Which is NOT an assumption of neoclassical economics that can lead to environmental degradation? a) Resources are limited b) Long-term effects are downplayed c) All costs and benefits are experienced by the buyer and seller alone d) Growth is good 13

14 QUESTION: Review Which of the following statements would be spoken by an ecological economist? a) The current economic system is working fine b) The current economic system simply needs to be fine-tuned c) The current economic system is broken and a new one needs to be developed d) Economic systems never work QUESTION: Interpreting Graphs and Data Market equilibrium, which sets the price of a product, is reached a) When supply exceeds demand b) When demand exceeds supply c) By demand when quantity is low, and supply when quantity is high d) When supply equals demand 14

15 QUESTION: Interpreting Graphs and Data Which conclusion can you draw from this graph? a) GDP has not really increased since 1950 b) Although we are spending more money, our lives are not much better c) We are spending less money, and our lives are much better d) The GPI is not as accurate as GDP QUESTION: Viewpoints Think of an issue in your community that could pit environmentalists against economic development. What do you think should prevail: environmental protection or economic development? a) Economic growth; we need the jobs b) Environmental protection; we need the environment c) Both; a compromise must be reached d) Whatever costs the taxpayers the least 15

16 QUESTION: Viewpoints What entities do you include in your domain of ethical concern? a) Humans only b) Humans and pets c) Humans, pets, and other animals d) Humans, pets, other animals, and nature 16