Class Note for ECOL 406R with Professor Bonine at UA
Class Note for ECOL 406R with Professor Bonine at UA
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Date Created: 02/06/15
Lecture 29 06 December 2005 Conservation Economics Sustainability Evaluations Conservation Biology ECOL 406R506R University of Arizona Fall 2005 Kevin Bonine Kathy Gerst Conservation Biolo 406 506R 1 Creativity Recap items in my office 2 Economics Van Dyke Chapter 12 3 Evaluations Zeb Hob an SEAsian shes N39PR Hmerema Ha r mann BSE 225 Wed erpm Conservation in Vietnam Final Exam 11001300h Tues 13 Dec 2005 in this room 2 Fall 2005 Conservation Biology cums prescmsm Forbes obby noon2 pm emu mu 1 mum cmwmoouuxz 11pm mkwwrumu mm oummwmwmlh Mn muk39ru Economics of Conservation Van D ke Ch 12 1 Economics Sustainability Herman Daly Wendell Berry Population Consumption Economies Assumptions and Goals Egtltternalities Genuine Progress Indicator anht and Nebel znnz I In Exponential v of m Growth gt my znm Log is tic Growth quotr Mm m r i pm my mm um um mm ism mm m m m m in with znm Role of Human Population Growth 12 ll lt i 7 m World tolal l g g 1miion people added E 8 l every5days D V E 7 Developing g 6 countries E r 3 O 8 4 1 a Developed 2 countries 1 l l 1950 2000 2050 2100 Year Miller 2003 Figure 1396 Pasl and projected population size for developed countries developing counlries and he world 195072120 More than 95 of the addition 0136 billion people belween lt 1990 and 2030 is proiected io occur In developing countries Data from United Nations 7 Role of Human Population Growth Demographic Transition Stage 1 Stage 2 Stage 3 Stage 4 Preindustiial TrariSillonal industrial Postinduslrial 80 77 High l Most developing j l 7 countries 393 60 E 50 Birlh rate 5 a e a n o e E q 40 l E 5 Much of Europe a e e m 3 a 30 2 D E E g a 5 20 Death raio it 0 roiai population Low Low Increasing Very high Decreasing Low Zero Negailve growili rale growth iaie growth raic growth rate growth rate growth rate growin rate Time Figure 1113 Generalized model at me demographic lransition Miller 2003 Age Structure Diagrams note age of reproduction currently 30 under 15 17 billion Male Female Rapid Gmwih Slow Growth Zero Growth Negative Growth Guaxemala United States Spain Germany Nigeria Australia Austria Bulgaria Saudl Arabia Canada Greece Sweden I Ages 0 14 I Ages 15 415 Ages 45235 Miller 2003 your g 59 Figure 1112 Generalized populallol age Structure diagrams fol countries with 1 rapid i 54 2 slow amp14 3 zero CLU2 and 4 negailve population growth rams Dalafrom Population Reference Bureau Raw Malcllal exumcrs I 5 Produced Nam usaels m m 29quot 44 Human resources am 0er umiuumg coumnu is any Naluml Fmducln nseels we 15 25 39 Human resources 55 Hughmeme mum 79m a Nalural F me 7 c ll l assets l ma 8 a H Jimmy Value added 67 C e FIEURE 235 Compasmon at world wealth some Wright and Nebel 2002 mm commas 1 mm on quotWe raw mm ma counlm alccuunl lnr 4 6391 oi llquot world s wealth ha mlmrmg Waning mill1 cnnmn 15 9 cl inn mina wawn Tue lulghr uimnw uumopud camI39m poem 7 6 nl 1m wealth elmhe ommm lm D 21qu mom mural will and Human resources are mm ID each cmw law The World Ennk Meadow Errwrorrmmiw ngluss39 A Papal on Work in Prvyuss lmslwvglnni DC39 rm lmurl39lallunal Bank ler Raconslmcllun and Darwinianm 10 was p m l Developed Countries I P A T 12 billion people 19 high average per capita purchasing power Fanlmhch have 85 world39s wealth use 88 natural resourcs generate 75 waste and pollution impact of each unit of oonsumption Environmental Impact Population gtlt Affluence X Technology ofa society consumption per person Poor parents in 3 Developing Countries dEVElDPan DBL W Y 81 of the people need to have 70200 have 15 world39s wealth children to equal the use 12 world39s natural resouroes impact on US produoe 25 waste and pollution chndren n LNVlRGNMENr M bum mum 2 Nu ox any llng quotneg wuss l Nunmu Evoivumy 7 Maximum Thruugwut Heal Mmgi 2quotd Law of Th rm odynam ics anm and Nebel znnz Env39ranmenuleconomicv wavnmmmru clwuy Thpnmiuimviranimm v m Autumn u mmqm m mi ian 1 mu m 1441132003 Traditional Neoclassical Economics Economy system of production distribution and consumption of goods and services scarcity Driven by wants and needs of govt society individuals Decisions about A what goods and services B how produce C how much D how distribute are made by individuals governments businesses Use resources A natural B human In nite Substitution C financial D manufactured to make goods and services 13 l39ria S per mm sh rplus Qh Quqnli Ly FIGURE 21 Supply and Demand The market clears al price p and quantity Q0 At the higher price P a surplus develops 50 price falls A ihc lower price 2 there is a shortage 50 price is bid up Pindyck and Rubinfeld 1992 14 Traditional Neoclassical Economics Miller 2003 Command lt gt Free Market government ma rkets competition information full cost pricing Capitalist Market System monopoly global free trade gov t subsidiestax breaksquotinsurancequot withhold information maximize profits pass costs to others future 15 Internal Market Costs vs Externalities Externa to Market Forces Noise Polution Acid rain Erosion Global Warming Eutrophication Disease Asthma Birth Defects Behavior and Intelligence 16 ENleCNML rNr diammcnaumwm WW naming ew mum gt Wm Human Euuiiuvriy Pmducliou iii 1 7 u Throughput Hex may Conwuwliwn 2quotd Law of Th rm odynam ics anm and Nebel znnz FlEURE 2 1 Environmental elmvoan View at 0991mmquot cllwly m Mmml Mummy WWW Wm WM M isnuvslvuwm a in mm lm my mlhln lan Mammy What is the purpose of the eoonomic system to what end all of this wealth Ultimate value beyond market 1NeoClassical ECDanllS growth always good 2Environmental Eoonomics catchall term think cyclically 3SteadyState ECDanllS John Stuart Mill 170039s Herman E Daly in out Virtue and character higher goals than material wealth 4Sustainable Development Later Brown do away with many subsidies replaoe income tax with environmental tax Stocks and Flows 9 Entropy Nicolas GeorgesRoegen quota Cadillac now means fewer human lives laterquot Utility vs Throughput 18 More distant d felopme t 3 FIGURE 24 5 The development cycle spawned by the Highway Trust Fund Wright and Nobel 2002 19 Economic Growth vs Development efficiency sophistication utility Nonrival air to breathe or nonexclusive goods UV protection from ozone Producer PaysPolluter Pays Dramaticay less waste packaging scrubber sludge TaxationSubsidies Poution Rights Precautionary Principle Government strategies and regulation Stabe democratic government required Product itself 20 10 VanDyke p 356 NEPA ESA Clean Air Clean Water Work bc require full and open disclosure of process and those involved How do Cheney secret meetings with industry leaders to plan energy policy t in SDCP and ndings from economic analyses EARTH WATCH m emu AIR nn anmns A wmnnu 21 In M w um um m h i y rmmwmwi W i W C 436 billionlllullllll3235Gill Wlllllllll39ll ivywill mm 4 mum mmwtw B gt68 trIllIon innuh i u m 4 mimu m m l m W WW ml mm Wm mi mmWm in 1 16 gt CB 3111133 3117quot quotl39r quot 391 in w Ammom mm m I in NW m mm I ulmlu mun lmlrliunll4umlwn1l mi mm 1mm mm m upmwummm mm ii i m Mme m y W m m whmi 1h mi Mm m mum NM 4 pm wimnyvyllrmylul m mm m mm m lwmmlx u m i wquot m mi W MM i i H mm mm mm mulmmm m r m Miriam i anr and Nebel zuuz mm mm mm am m m ilullml u n m lunmm mm W my m mm L m h m w in mm M Vi mum mm mnmmmum w lrilmlumihilnllrml rm mm mmhrmm m immmm mi ummmwt u w m m m m in y m mi mm m mm mum mimmm In MM Vim m M 1 m m m ummqmm mm W itwmm mm mu minimum uva my mum linummm all m Mrmmuwu mm in mmi hquot M Mummy mm w W WWW u mm in mm Mm Wilma m mlml nu iium mnwl lmmm Wm l 2 my um lmmn cm mi MM mum m lv an him quotm mm m mum in l mm mm m miinmmwim immumm ii minimum on lmmlul in mmquot m vim in my in nmnlnhh m m m mu lnlqnnlrm w immmmim Wu H in unnumm m m w mm mm m m m m mm w l mu w ill lumu am Minuilunmlmwl 41mm dwmphm drum in m n rulilulml w mle u wt mi mm llm 1mm an WW 4 1 t um um um mulnl mm mm mi in mm m w Hm Inulnu u mm mm m m WW in mum w it w mull m W lliw l millm WWWmm mmmmn um mum m 1 m mm mm um um n w myquot Ami mm va W m M W um it xmr mi m 444 Wm HM my 11 Herman Dexv Former Enwmnmema Emnmmst wvm Wur dbank meessur at u Mary and uumv vs Thmughput uumv nut measureme n s an evpenenee Orcu atury system vs mgesnve systam perpetuex muter meemne Waahh vs um actummatmn nfgnnds vs beds N6 s5 MEV SE 30 n Mm vs Mann Emnmmts M c vs enmess Davao v resuurces n mta mm pnee u but f pev fur resuurces than an remsmbme Weahh 3 Center for the Advaneemem ofthe Steady StateEconomy http www lezdystztenrgIndzxhtml z 12 Index of Sustainable Economic Welfare p 355 Van Dyke 2003 1 Income Distribution Thruughput 2 Net Capital Growth 3 Natural Resource Depletion Environmental Damage 4 Unpaid Household Labor social and envimnmenial justice ZS Wmluammmm giviRONMENr Man a Manual am no mm 1 I mmscww mica WMquot mama Waslss Thmu uL gull Heal Mug Cuiismilnliuu 2quotd Law of Th rm odynam ics anm and Nebel znnz FlEURE 2m WWW m nvlronmontal economic View 0 0991mmquot mm m nnniml Mummy mi mums m in mm lm m ulnln ii WWWm 13 um v rmww mmri a nu n ma me awn Haw Hiya i i i i gt up 7 1nquot W mum mi4ilt 39UFH y 1n 04 Miiier 2003 Figure mm r min u my Genuine Progress Indicator 19m mm mm mm W znnn Index of Sustainable Economic Welfare v m I2quot Vaanke 2003 us 9m mum Pied rem am my m m wso mm m m me i W cw halvingJud gt1 in am ovary uanbaranon wa must cansmr me lmpacl at our duclslons on ma next seven gannrahons From the Gram Law ul the Positive lmqunis Conlederacy Vs DISCOUNT seventh RATE GENERATION 28 14 Figure 22 Convanuonal VlEW oi economic aciiyily in a market pure Market Economic sys em economic system economic goods and money ow between households and busmesses lo a closed loupi In many econonr Flew of WW lCS iexihouksi SUCH market ECQHOlTllC systems are shown as r here as ll Lhey were sell caniained and thus independent 07 the natural resources that support all economies and all We This model reinforces the idea lhal unlimited economic gruwm of any kind is sustainable Money News rmm households to businesses in pay lot products 141 Miller 2003 Flow oi products Conventional 739 Neoclassical Households Economics Private Property Economic Growth always good Aocate based on price More always better for an individual utility curves Money News lrom businesses In householdsia payior labor and other produciion Flow or money Llnrhiu mm m utility curves I and Iumk rm er quotCURE 33 An llulillrn xlcn Map An IHLIH39K II39HCC map 1 d 513 ul imlilh nvm v cums mm amnth person39s mnmm mn mm bashI m mm m uuu us 3th an quotmm mm A m pmmrmi to my quotmm mm on cum ur cg luski l m whh h H mm s pmlm rcd in m markrl mm on 21 such 5 u Pindyck and Rubinfeld 1992 quotMRI 2 Annmamnwnum rVIlt39l u mum mi sin4 liululan nr4l l 30 l Mmli In mm Clothing units plat week 40 30 u 2i U2 L NBudget Linc 20 40 80 Food units per week FIGURE 311 Maximizing Consumer Satisfaction When the budget line and the indifference map are combined Consumers maximize their satisfaction by choosing A At this point the budget line and indifference Curve U are tangent and no higher level of satisfaction can be attained At A the point of maximization the marginal k rate of substitution between the two goods equals the price ratio At B however the marginal rate of substitution 1 is greater than the price ratio 12 and max imization does not occur Pjndyck andRubinfeld 1992 31 4 SPIKES 1 Global Climate Change 2 Extinction 3 Consumption 4 Population Personal Local National Global 32 16 lama 2v Emsyilim Silvwa and mum A u mm lemm mwhlou Hmrhwn A W Mm W m m Lm mv mule m mhmvl m m 1 mm H wmnrmw m mm m u Wm mm mm mm WW mm mm m in mm mm mm Mmmmawmxurm vuwhvrr u 39 mm ukrwvw zr 1qu 1quot va y w m Anny a why n M mm m m m H mm Surrurwhmlmquot A mmmuwm m m mm mu V w mumm rmmuwummummmWuwmmmWW w mu pm Mr Wrmm MW mp w 1 mm k mum n W A hum y mmw mmhmmnunwuuw Mm hhnmdu m mm m mm mm mm mmv xymmmm WW nwmm Wm M H mm Jr vw mm mm mum 1 MW mm m m mu m I m wymulumnnm m rum W WWW 4 m Mammy or mMm I H mm M mm mm m m m M Wu m wux m w hm 1m m uxmm w mum m wMumgu1mmwhmmxnmmc m m m m mm m mm mm mm muguwunwm m mm b mm mm W W M mm W w m4 M rm n mm Wu 1 m m m mmln mm 4 mm Jada udkavunulnw M Wm mm mm mm Everman and Wm m5 Thanks m Kathy Gerst Evaluations 17
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