Six Perspectives on Nature in Environmental Thought & Policy: A Spectrum of Worldviews

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Gary McKenzie
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1 Six Perspectives on Nature in Environmental Thought & Policy: A Spectrum of Worldviews 1.Free Market: Nature as Property 2.Conservation: Nature as Source of Resources 3. Preservation: The Intrinsic Value of Nature & Wild Places 4.Deep Ecology: Inherent Value of All Living Things 5. Environmental Justice: Fair Distribution of Environmental Benefits & Burdens 6. Ecological, Restorative: Humans Working With & Within Nature

2 Narratives of Environmental Imagination : Ethics Embedded in Story 4 Main American Narratives: 1.Providential: Nature as God s Gift to be worked and transformed; 2.Romantic/Preservation: Nature as Secular Cathedrals, as Spiritual; 3.Conservation: Nature as Resource for Progress, needing wise management; 4.Ecological: Nature as complex and interpenetrating and interdependent systems.

1. Providential Nature as Gift of God s Providence Duty to transform nature, make it productive Settlement ethics, Republican spirit Culmination in Doctrine of

3 1. Providential Nature as Gift of God s Providence Duty to transform nature, make it productive Settlement ethics, Republican spirit Culmination in Doctrine of Manifest Destiny Government role: facilitate clearing, settling, and planting the continent Land surveys, railroads, homestead laws, irrigation and reclamation, etc.

2. Romantic/Preservation Influence of Emerson, Thoreau, Muir Appreciation of the Sublime ; emphasis on the Aesthetic and Spiritual Value of wild nature:

4 2. Romantic/Preservation Influence of Emerson, Thoreau, Muir Appreciation of the Sublime ; emphasis on the Aesthetic and Spiritual Value of wild nature: antidote to corrupting civilization Emphasis on Preservation, wild nature as apart from human civilization Government role: to preserve and protect nature

management Utilitarian Sustainability: Greatest good for the greatest number for longest

5 3. Conservation Response to widespread 19 th Century degradation of Nature Spearheaded by Teddy Roosevelt and Gifford Pinchot Nature: storehouse of resources requiring expert management Utilitarian Sustainability: Greatest good for the greatest number for longest time; informed by Ecology Role of Government: Expertise and Management for the Public Good

6 Economic Efficiency-Utilitarian Bahamas on a Budget Willingness to Pay (Benefits) Cost Net- Benefits 3 days in tent carbins Beach Front Cabanas for 4 days A 5-day trip with extras Deluxe(1 week) What package would you prefer and why?

7 Economic Efficiency We measure the benefits you derived from consuming a particular good or service through your willingness to pay (WTP) WTP(consumer s valuation of a good) is defined as the amount for which you would be indifferent between enjoying the good or service and keeping the money(staying without the good). Example: Going on (and paying for) the week-long trip would make you no better off than if you didn t take a vacation at all. Choosing the deluxe trip on the grounds that you would be willing to pay the most for it amounts to ignoring the costs of the vacation completely. Cost is defined as the opportunity cost.

8 Economic Efficiency Economists use the notion of consumer surplus as the basis for optimizing decisions. Measured here as netbenefits! This is the framework by which we evaluate decisions in environmental economics. Environmental protection is treated as any other good/ service you buy on the market albeit with huge exceptions. An economic efficient policy or outcome is the one that achieves the greatest possible net benefits.

9 A Real World Env tal Issue Sulfur dioxide (S0 2 ) emissions from fossil-fueled electric power plants. Burning oil or coal to generate electricity creates S0 2 as a byproduct, because those fuels contain sulfur. In downwind areas, S0 2 emissions contribute to urban smog, particulate matter, and acid rain. For these reasons, the control of S0 2 emissions from power plants has been a focus of air pollution legislation in the United states and many other countries. In the economic efficiency framework, we talk about the efficient level of pollution abatement. This involves enumerating the benefits and costs of abatement. How would you define the benefit &costs of abatement in this context.? Benefit is valuated in willingness to pay for the avoided damages from pollution abatement.

10 Cost and Benefit Curves The abatement cost curve shows the relation between incurred cost in pollution abatement and the level of abatement. What do you think the cost curve looks like?

11 Cost and Benefit Curves Total benefit curve is concave; it increases at a decreasing rate.

12 Costs and Benefits Curves

13 Marginal Level Marginal cost in our analysis is the cost of one more unit of abatement. Marginal benefit is the benefits derived from one more unit of abatement. Marginal cost(benefit) is the slope of the total cost(benefit) function. The concavity and the convexity of the total benefit and total cost functions respectively generate corresponding shapes for the marginal benefit and cost functions. Concavity of TBC = total benefit increases at a decreasing rate : Downward sloping marginal benefit curve. Convexity of TCC = total cost increases at an increasing rate: Upward sloping marginal cost curve.

14 Marginal Analysis The upward-sloping MB curve means that any additional ton (unit) of abatement generates smaller additional benefit than the one that preceded it. The downward-sloping MC curve means that any additional ton (unit) of abatement costs more than the one that preceded it.

15 Equimarginal Rule to Efficiency

16 Equimarginal Rule to Efficiency Equimarginal rule: The efficient level of abatement occurs where marginal benefit equals marginal cost. MB = MC. The efficient level of pollution control is the level where the additional benefit of the last unit of abatement equals the additional cost incurred in providing that abatement. The abatement level at which MB=MC corresponds to the abatement level that generates the highest possible net benefit( economic efficient level of abatement).

17 Dynamic Efficiency When environmental project generates streams of benefits and costs over time. These benefits and costs vary over time. Then we deal with dynamic efficiency In the dynamic setting, an efficient abatement level maximizes the present value of the net benefits to society The present value of benefit (cost) is the today s dollar value of the stream of future benefits (costs). The discount rate is an important factor in the dynamic setting.

18 Dynamic Efficiency The conversion from Future value to Present value is given as PV = FV (1+r) t In the dynamic setting, the equimarginal rule states that an economic efficient level of abatement or environmental policy equates the present value of marginal benefits with the present value of marginal costs.

Market Failures. There are three main environmental market failures. a. Externality. b. Public Goods. C. Tragedy of the Commons

Market Failures. There are three main environmental market failures. a. Externality. b. Public Goods. C. Tragedy of the Commons Market Failures Market failure occurs when the market outcome does not maximize netbenefits of an economic activity. Due to the nature of environmental resources, the market often fail in dealing with