economic impact of environmental management (1 Viewer)

[rajputsingh]

as the title states what are the economic impacts of environmental management of the aust'n economy and economies as a whole i looked at riley adn dixon and they dont really answer my question...i hav idea that govt's hav 2 spend money on enviro management hence detracting away on money that couild be used 2 stimulate conomic growth....also firms raise prices for enviro freindly goods which leads 2 higher prices adn possibly less consumption...are only ideas any suggestions?

 

[munchiecrunchie]

you have to try an look at environmental management in an economic light;

you need to also look at the economic benefits of environmental management.

for example, if you impose a quota on the amount of fish that can be fished in a certain waterway; although you may be reducing output in the short term, in the long term, this will ensure that there will always be fish to fish (fish will regenerate) and hence you can attain the economic objective of sustained economic growth, a long term goal.

i thought this was in that textbook. . . or maybe i didnt read it properly (most likely)

 

[rajputsingh]

omg i never thought of it that way thank u sooooooooo much m8 u hav really helped me out

 

[munchiecrunchie]

no problemo

 

[michael1990]

you have to try an look at environmental management in an economic light;

you need to also look at the economic benefits of environmental management.

for example, if you impose a quota on the amount of fish that can be fished in a certain waterway; although you may be reducing output in the short term, in the long term, this will ensure that there will always be fish to fish (fish will regenerate) and hence you can attain the economic objective of sustained economic growth, a long term goal.

i thought this was in that textbook. . . or maybe i didnt read it properly (most likely)

I like that one.

You can also use the most obvisious of cutting down trees for paper.

 

[Arowana21]

OMFG think of PPC with eco growth and environmental managment

 

[Lorie]

I think you should keep it simple. Production possibilty curves more refer to the opportunity costs of two goods.

Environmental damage is an example of negative externalities. Think the simple supply and demand curves, and look at supply as the costs and demand as the benfits. Now when there is environmental damage from the production of a good, it is affects a 3rd party, not just the buyer and seller, for example pollution is the air. Now because of this flow effect the true costs are actully higher than they should be, and the supply curve should shift to the left. This would account for the full costs (both marginal and society's costs).

There are two main ways of government intervention to achieve this, a tax and tradeable permits (quota). A tax is an imposed cost to business. It would force businesses to account for their enviromental damge for the products they produce. THe key advantage of a tax is its effects do respond to the economic cycle. When the company is experiancing high growth it will produce more and therefore pay more tax to account for this, and vice versa. With a permit it restricts the business to keep their emissions within a certain target. This encourages the business to enact more carbon friendly practices and being able to trade their remaining permits to businesses would can not meeting these requirements. This also would make businesses accountable for their increased emissions by having to purcahse more permits.

 

[tau281290]

Think about the Stern Report or other similar academic essays. It says that the economic cost to the world is a decrease of 5% of GDP per year in the future if we don't act now and contribute 1% of GDP to fix the env. damage. This relates to the whole world, so you can mention this when talking about the Australian economy.

ESD is also an important issue i think you can talk about. The tradeoffs between economics growth and fixing the market failures.

 

[Demandred]

There could be more just taxes, the government could put forward property rights, Lorie touched on this. The government would assign a rights on the right to pollute, for instance, 1000 $50 per tonne of carbon emissions. This creates a new market, with buyers and sellers of carbon emission permits which TAKES into account the costs of polluting the atmosphere. Some say this is more flexible and efficient than a arbitrary tax imposed by the government, but some critics say it needs perfert competition to work.


http://en.wikipedia.org/wiki/Coase_theorem

 

[gnrlies]

There's more to it than simply introducing a Pigouvian tax, you can introduce property rights and create a market so as to internalise the externality - Coase's theorem!

http://en.wikipedia.org/wiki/Coase_theorem

Decoded: in an economy any exchange that benefits both parties should be made. I.e. if party A is willing to pay X amount of dollars to be able pollute, and party B is willing to receive X amount of dollars from A in order to suffer the negative consequences of pollution; then this transaction should take place. But a problem originates due to property rights. For example does the owner of land have the right to say "I will not allow any business to pollute in my air?" Even if we were to legally allocate such a property right, how do we enforce it? Subsequently it is hard for such a transaction to take place as party A can simply say "well why should I pay you money to pollute when I can pollute anyway"

 

[Demandred]

Should be simplier now.