Sustainable Development

Transcription

1 Sherif Khalifa Sherif Khalifa () Sustainable Development 1 / 50

2 Rapid population growth and expanding economic activity in the developing world are likely to do extensive environmental damage. As a result of economic necessity, communities may destroy or exhaust the resources on which they depend for survival. Environmental degradation can reduce long term productivity, but expanding economic activity has a positive impact on current income. Environmental degradation can detract from the pace of economic development by imposing high costs through health related expenses and the lower productivity of resources. Sherif Khalifa () Sustainable Development 2 / 50

3 Definition Sustainability characterize the desired balance between economic growth and environmental preservation, and refers to meeting the needs of the present generation without compromising the needs of future generations. Definition Sustainable development is a pattern of development that permits future generations to live at least as well as the current generation, generally requiring at least a minimum environmental protection. Definition Environmental capital is the portion of a country s overall capital assets that directly relate to the environment. Sherif Khalifa () Sustainable Development 3 / 50

4 A development path is sustainable if and only if the stock of overall capital assets remains constant or increases over time. Overall capital assets include physical (machines, factories), human (knowledge, skills) and environmental capital (forests, soil, water). Future growth and overall quality of life are critically dependent on the quality of the environment. The natural resource base of a country is a common heritage for all generations. Destroying this endowment in the pursuit of short term economic goals penalizes future generations. Sherif Khalifa () Sustainable Development 4 / 50

5 Definition Environmental accounting is the incorporation of environmental benefits and costs into the quantitative analysis of economic activities. Definition Sustainable national income is an environmental accounting measure of the total annual income that can be consumed without diminishing the overall capital assets of a nation. The preservation or loss of valuable environmental assets should be factored into estimates of economic growth and human well being. Policy makers may set a goal of no net loss of environmental assets If an environmental resource is depleted, a resource of equal or greater value should be regenerated. Sherif Khalifa () Sustainable Development 5 / 50

6 NNI = GNI D m D n R A NNI : sustainable national income. D m : depreciation of manufactured capital assets. D n : depreciation of environmental capital-the value of environmental decay over the course of a year. R: expenditure required to restore environmental capital. A: expenditure required to avert destruction of environmental capital. Sherif Khalifa () Sustainable Development 6 / 50

7 Definition Environmental Kuznets curve is a graph reflecting the concept that pollution and other environmental degradation first increases and then falls with increases in income per capita. Sherif Khalifa () Sustainable Development 7 / 50

8 Global Warming & Climate Change Definition Global warming refers to the increase in average air and ocean temperatures, and attributed largely to human industrial, forestry, and agricultural activities emitting greenhouse gases. Definition Climate change is the nontransient altering of underlying climate, such as increased average temperature, decreased annual precipitation, or greater average intensity of droughts or storms. Definition Greenhouse gases are gases that trap heat within the earth s atmosphere and can thus contribute to global warming. Sherif Khalifa () Sustainable Development 8 / 50

9 Global Warming & Climate Change Sherif Khalifa () Sustainable Development 9 / 50

10 Global Warming & Climate Change Sherif Khalifa () Sustainable Development 10 / 50

11 Global Warming & Climate Change Sherif Khalifa () Sustainable Development 11 / 50

12 Global Warming & Climate Change Sherif Khalifa () Sustainable Development 12 / 50

13 Air Pollution Sherif Khalifa () Sustainable Development 13 / 50

14 Air Pollution Sherif Khalifa () Sustainable Development 14 / 50

15 Air Pollution Sherif Khalifa () Sustainable Development 15 / 50

16 Air Pollution Sherif Khalifa () Sustainable Development 16 / 50

17 Air Pollution Sherif Khalifa () Sustainable Development 17 / 50

18 Water Pollution & Scarcity Sherif Khalifa () Sustainable Development 18 / 50

19 Water Pollution & Scarcity Sherif Khalifa () Sustainable Development 19 / 50

20 Water Pollution & Scarcity Sherif Khalifa () Sustainable Development 20 / 50

21 Deforestation & Desertification Definition Desertification is the transformation of an area into dry, barren land with little or no capacity to sustain life without an artificial source of water, and is the encroachment of the desert into areas where erosion has been most severe. Definition Deforestation os the clearing of forested land either for agricultural purposes or for logging and for use as firewood. Definition Soil erosion is the loss of valuable topsoils resulting from overuse of farmland, and deforestation and consequent flooding of farmland. Sherif Khalifa () Sustainable Development 21 / 50

22 Deforestation & Desertification Sherif Khalifa () Sustainable Development 22 / 50

23 Deforestation & Desertification Sherif Khalifa () Sustainable Development 23 / 50

24 Deforestation & Desertification Sherif Khalifa () Sustainable Development 24 / 50

25 Deforestation & Desertification Sherif Khalifa () Sustainable Development 25 / 50

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28 Sherif Khalifa () Sustainable Development 28 / 50

29 Privately Owned Resources Finding the optimal market outcome involves maximizing the total net benefits to society from a resource. Total net benefit is the difference between the total benefits derived from a resource and the total costs to producers of providing it. Total net benefit is maximized when the marginal cost of producing or extracting one more unit of the resource is equal to its marginal benefit to the consumer. Total net benefit is equal to the consumer and producer surpluses. Sherif Khalifa () Sustainable Development 29 / 50

30 Privately Owned Resources Price Demand Curve Marginal Benefit Quantity Sherif Khalifa () Sustainable Development 30 / 50

31 Privately Owned Resources Price Demand Curve Marginal Benefit Price Quantity Sherif Khalifa () Sustainable Development 31 / 50

32 Privately Owned Resources Price Consumer Surplus Price Demand Curve Marginal Benefit Quantity Sherif Khalifa () Sustainable Development 32 / 50

33 Privately Owned Resources Price Supply Curve Marginal Cost Quantity Sherif Khalifa () Sustainable Development 33 / 50

34 Privately Owned Resources Price Supply Curve Marginal Cost Price Quantity Sherif Khalifa () Sustainable Development 34 / 50

35 Privately Owned Resources Price Supply Curve Marginal Cost Price Producer Surplus Quantity Sherif Khalifa () Sustainable Development 35 / 50

36 Privately Owned Resources MB/MC 15 MC 10 MB Quantity Consumer Surplus = Producer Surplus = ( ) 1 (100) (15 10) = ( ) 1 (100) (10 5) = Sherif Khalifa () Sustainable Development 36 / 50

37 Privately Owned Resources Sherif Khalifa () Sustainable Development 37 / 50

38 Privately Owned Resources Definition Scarcity rent is the premium or additional rent charged for the use of a resource or good that is in fixed or limited supply. The owner of a scarce resource has a finite volume of a resource to sell. The owner knows that by saving a portion of it for future sales, the owner can charge a higher price today. It is the owner s ability to collect this rent that creates the rationing effect to ensure the effi cient allocation of resources overtime. In the absence of scarcity, all the resource will be sold at the extraction cost and no rent will be collected. Sherif Khalifa () Sustainable Development 38 / 50

39 Privately Owned Resources Sherif Khalifa () Sustainable Development 39 / 50

40 Worker Wage MP AP Sherif Khalifa () Sustainable Development 40 / 50

41 Definition Common property resource is one that is collectively or publicly owned and allocated under a system of unrestricted access, or as self regulated by users. Private employment: wage = marginal productivity Private Surplus = (5) ($8) (5) ($6) = $10 Public employment: wage = average productivity Public Surplus = (9) ($6) (9) ($6) = $0 Sherif Khalifa () Sustainable Development 41 / 50

42 Sherif Khalifa () Sustainable Development 42 / 50

43 Return to Labor Wage 100 MP L 200 AP L Labor Sherif Khalifa () Sustainable Development 43 / 50

44 Private employment = 100 Private Surplus = (100) ($30) (100) ($10) = $2000 Public employment = 200 Public Surplus = (200) ($10) (200) ($10) = $0 Sherif Khalifa () Sustainable Development 44 / 50

45 Sherif Khalifa () Sustainable Development 45 / 50

46 Definition Pollution tax is a tax levied on the quantity of pollutants released into the physical environment. Definition Private cost is the direct monetary outlays or costs of an individual economic unit. Definition Social cost is the full cost of an economic decision, whether private or public, to society as a whole. Sherif Khalifa () Sustainable Development 46 / 50

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49 Price MC S MC P MB Quantity Sherif Khalifa () Sustainable Development 49 / 50

50 Consumer Producer Government Share of consumers in the pollution tax= ( ) Share of producers in the pollution tax= ( ) Sherif Khalifa () Sustainable Development 50 / 50