The Environment and Development

Chapter 10

Group membersO ZAHEER U DIN QADIRO MUHAMMAD SUFIAN O BILAL NAZIR QADRIO ASADO NADEEM ASHRAFO AYESHA AKHTAR

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Economics and the Environment

O Environmental issues affect, and are affected by, economic development

O Poverty and ignorance may lead to non-sustainable use of environmental resources

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Environment and Development: The Basic Issues

O Sustainable development and environmental accounting

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Environment and Development: The Basic Issues

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nm DDGNINNI *

Sustainable net national product is:

WhereNNI* is sustainable national income

GNI is Gross national incomeDm is the depreciation of manufactured

capital assetsDn is the depreciation of environmental

capital

Environment and Development: The Basic Issues

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ARDDGNINNI nm *

Alternatively, sustainable net national product is:

WhereNNI*, GNI, Dm, and Dn are as before R is expenditure needed to restore

environmental capitalA is expenditure required to avert

destruction of environmental capital

Environment and Development: The Basic Issues

O Sustainable development and environmental accounting

O Population, resources, and the environment

O Poverty and the environmentO Growth versus the environmentO Rural development and the

environment

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Environment and Development: The Basic Issues (cont’d)

O Urban development and the environment

O The global environment

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The Scope of Environmental Degradation: A Brief Statistical Review

O Environmental problems have consequences both for health and productivity

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Table 10.1

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Table 10.1 (cont’d)

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Rural Development and the Environment: A Tale of Two Villages

O Representative African villageO Representative South American

village

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Traditional Economic Models of the Environment

O Privately owned resources

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Figure 10.1

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Figure 10.2

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Traditional Economic Models of the Environment

O Privately owned resourcesO Common property resources

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Figure 10.3

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Traditional Economic Models of the Environment

O Privately owned resourcesO Common property resourcesO Public goods and bads: regional

environmental degradation and the free-rider problem

O Limitations of the public goods framework

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Figure 10.4

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Urban Development and the Environment

O The ecology of urban slumsO Industrialization and urban air

pollution

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Figure 10.6

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Urban Development and the Environment

O The ecology of urban slumsO Industrialization and urban air

pollutionO Problems of congestion and the

availability of clean water and sanitation

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The Need for Policy Reform

O The recognition that action to reduce environmental hazards has been insufficient is now widespread

O However, budgets are limitedO Better pricing policies would improve

mattersO Inclusion of women in the design of

environmental policy is important

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The Global Environment: Rain Forest Destruction and Greenhouse Gases

O Many scientists are alarmed by recent evidence regarding ozone depletion and global warming

O Economists also are concerned with the costs of global climate change

O The solutions seem to involve both LDCs and industrialized countries

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Policy Options in Developing and Developed CountriesO What LDCs can do

O Proper resource pricingO Community involvementO Clearer property rights and resource

ownershipO Improved economic alternatives for

the poorO Improved economic status of womenO Industrial emissions abatement

policies10-25

Policy Options in Developing and Developed Countries (cont’d)

O How developed countries can help LDCsO Trade policiesO Debt relief and debt for nature swapsO Development assistance

O What developed countries can doO Emissions controlsO R&DO Import restrictions

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Table 10.2

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