EVS Final Ppt

8/2/2019 EVS Final Ppt

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Presented by -

Ralena Moras -31

Ajith Menezes-29Vinita DSouza -26

James Johnson-27

Julaius Mathana -28

Ashwin Milton-30


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Introduction to Environmental

Economics

Environmental economics is the subset of economics

that is concerned with the efficient allocation of

environmental resources.

Environmental economics takes into consideration

issues such as the conservation of natural resources,pollution control, waste management and efficient

creation of emission standards


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Economic view

The key objective of

environmental economics is

to identify those particular

tools or policy alternatives

that will move the market

toward the most efficient

allocation of natural

resources.

When the market fails toallocate the resources

efficiently, market failure

can occur.


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The Law of Diminishing Returns


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The Law of Diminishing Returns The theory was effectively applied by Garrett Hardin in his

1968 article on the tragedy of the commons in which he

looked at many common property resources, such as air,

water, and forests, and described their use as being subject to

diminishing returns.

The challenge whether it be local, regional, national, or

global is how best to manage the problem of declining

resource-to-people ratios that could lead to a reducedstandard of living


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Carrying Capacity One population issue is that ofcarrying capacity the

number of individuals an ecosystem can support without

having any negative effects.

If carrying capacity is exceeded, living organisms must adapt

to new levels of consumption or find alternative resources.

Carrying capacity often serves as the basis for sustainabledevelopment policies that attempt to balance the needs of

today against the resources that will be needed in the future.


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Carrying Capacity4 Cows


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Carrying Capacity While the exact value of the human carrying capacity is

uncertain and continues to be under debate, there has been

evidence of the strain that both overpopulation and over-

consumption has placed on some societies and the

environment.

In the meantime, actions to reduce the strain and ensure

natural resource recovery for the future will depend on an

increase of sustainable development policies worldwide.


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Sustainable Development Development that meets the needs of the

present without compromising the ability of

future generations to meet their own needs

Economic growth, environmental protection, and

social equity, and suggested that all three can beachieved by gradually changing the ways in which

we develop and use technologies


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Sustainable Development

Environment

Society

Economy


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Sustainable Development

Current Reality Time Future

Unsustainable

Sustainability

SustainableEconomy

Environment

Society

Economy

Society


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How Markets WorkSupply

and Demand The market is an economic activity which is organized between buyers and

sellers through their behavior and interaction with one another.

The interaction of buyers and sellers in the market helps to determine the

market price, thereby allocating scarce goods and services efficiently.

The inverse relationship between price and quantity demanded is so

universal that it is called the law of demand. The higher the price, the

lower the quantity demanded - and the lower the price, higher quantity is

demanded

The law of supplyis just the opposite: the higher the price, the higher the

quantity supplied - and the lower the price, less quantity is supplied


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Variables That Influence

Price

Income

Prices of related goods

Tastes

Expectations

Number of Buyers

Buyers(Demand)

Price

Input prices

Technology

Expectations

Number of sellers

Sellers(Supplier)


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Externalities

Externalities are unintentional side effects of anactivity affecting people other than thosedirectly involved in the activity.

1. Negative externality

2. Positive externality - "free riders

Traditionally both are considered to be forms ofmarket failures i.e. where a free market doesnot allocate its resources efficiently.


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Arthur Pigou, a British economist, argued that theexistence of externalities justified governmentintervention through legislation or regulation.

Pigovian taxes and subsidies

Many economists believe that Pigovian taxes are better

than government imposed regulations

Taxes leave the decision of how to deal with pollution toindividual sources by assessing a fee or "tax" on theamount of pollution that is generated.

Cap and Trade - bought or sold, or banked for future

Individual Transferable Quotas (ITQs)eg Fisheries


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Ecosystem valuation

Valuation can be a useful tool that aids in evaluating

different options that a natural resource manager might face.

It is the process by which policymakers assign a value,

monetary or otherwise to environmental resources or to

the outputs and/or services provided by those resources. E.g.

Mangroves

Environmental resources are particularly hard to quantify

due to their intangible benefits and multiple value options.

E.g. Wood


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There are typically 2 ways to assign value to

environmental resources and servicesuse andnon-use

Market or Opportunity cost pricing

Hedonic pricing

Contingent valuation

Cost-benefit analysis - requires the quantificationof possible impacts of a proposed project. Theimpacts could be physical or monetary.


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Cost-benefit analysis

It involves a comparison of the costs of an action compared with

considerations of the benefits of that action. However, for publicpolicy it is formalized and quantitative.

Base situation or what would happen if no changes were made

Identify the relevant time period by which the costs and benefits

be realized.

Valuation and discounting only costs of true externalities aretaken into account & not secondary effects

After all benefits and costs have been given a common unit of

measurement, options can be evaluated.


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Environmental Impact Analysis

An environmental impact analysis is typically conducted to

assess the potential impact a proposed development project

will have on the natural and social environment

This may include an assessment of both the short- and long-term effects on the physical environment, such as air, water

and/or noise pollution; as well as effects on local services, living

and health standards, and aesthetic

Environmental impact analyses are often challenging because

they call for making projections with incomplete information.

Methods of assessing the impacts typically include both

objective and subjective information making it difficult to

quantify


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Case study

Social Forestry in Karnataka:An

impact analysis-D M Chandrashekhar


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Background

Forest based industries leading to destruction

of forests

Karnataka government taken reforestation

programme with single-stand eucalyptus

plantations


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Area of forests shrunk..Resettling the refugees and displaced

Encroachment of forest lands for cultivation

Submersion of forests due to irrigation projects

Clearing forest for electric transmission lines

To meet demand by urban people for timber

and fuel

Forest fire


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The main culprit: Eucalyptus

plantations

It is water intensive

It is nutrient intensive

It is toxic


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Problem

Felling of 40,000 hectares of land in Sirsi-Yellapur region under natural forest cover

Raised single stand hybrid eucalyptus

plantations without trialsResult Total destruction by fungus

cortecium salmonicolor.

Reason for destruction Eucalyptus notsuited for high rainfall and low altitude

conditions


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Basis for social forestry

Serving the rural community

No plantations of eucalyptus mentioned

The forest department launched a massiveprogramme to propagate monoculture on

farmlands to meet needs of industry

Forest department nurseries started

Has it helped?????


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Review of social forestry programme

in Kolar and Bangalore districts

KOLAR-(1975-1983)-611.31 lakhs of eucalyptus

seedlings distributed

BANGALORE-247.63 lakhs

63.3% raised on agriculture land in kolar and

49.6% in Bangalore


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Land reforms and eucalyptus

plantations

Abolition of tenancy act

The act posed threat to landowners

Switching from food crop to eucalyptus plantations


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Outcomes

Reduction in grazing resources

Permanent destruction of lands

Land unfit for agriculture-foodcrops

Lands deemed as C & D type


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Government move Approved joint sector plantations

Approved plantations of eucalyptus on 30000hectares of C and D type

Wasteland development programme-plantations of 5

mn hectares annually


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Opposition

By peasant community-uprooted lakhs of

eucalyptus seedlings at Tumkur district

Plantations not allowed in Chikmaglur district

Formation of Mannu Rakshana Koota(Save

soil forum)

Protest again government schemes

disregarding rural people


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Activities

Farmers ready to organize plantings for 250 million

saplings of multiple use species

The State level federation of voluntary organizations

for rural development in Karnataka(FERVORD-K)requested government on change in forestry policy

Karnataka Forest plantations corporation sponsored

a 10 day visit to Gujarat

Environmental education programmes undertaken

Village level organizations initiated afforestation

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