Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economics of Natural Resources and the Environment - Coggle Diagram
Economics of Natural Resources and the Environment
Introduction
De Groot, much in Eagles has made a classification of these functions that is very useful for their identification (taken from Jiménez, 1996): Support or load functions, in which the environment provides the substrate on which human activities are developed. Construction functions. Transport functions. Waste disposal functions.
Sustainable development is possibly the most successful coinage of the economy during the second half of the 20th century
The very nature of the economy, both from the perspective of communism and capitalism, leads to the depletion of natural resources and the deterioration of the environment, with increasingly evident effects on people's quality of life.
The discipline Economics of Environmental and Natural Resources, or also called Environmental Economics, has as its central axis the economic analysis of environmental resources. This science aims to establish the theoretical bases that allow optimizing the use of the environment and natural resources. Romero (1997).
Environmental assessment can be defined as a set of techniques and methods that make it possible to measure the expectations of benefits and costs derived from some of the following actions:
• Use of an environmental asset
• Carrying out an environmental improvement,
• Generation of environmental damage.
renewable resources
Maritime or oceanic fishing is divided into coastal fishing or fishing from a boat, fishing from a boat has almost remained as commercial fishing, since due to its investment, equipment and cost, it is not accessible to most who wish to practice it as a hobby. However, there are a large number of fans.
Fishing exploitation, especially industrial exploitation, is a problem that deserves our attention; Since ancient times, man has sought to feed himself and found a solution to that need, among other activities, in fishing
Economic Model: Costs and Revenues
Under the general guidelines of the economic globalization process, it seems that sustainable development reflects an ideological utopia of ecologists and environmentalists; being only possible with the radical change of world economic models
Free Access And Common Property
Free access natural resources – hereinafter, RLA – are those that can be used or consumed by any economic agent without any type of limitation derived from the presence of property rights.
environmental policy
The environmental quality of the environment refers to the qualitative dimensions of the surrounding environment; like the air and water of a city. An environmental standard is a level that can never be exceeded by a given contaminant in the environment.
Air pollution Vehicles emit a number of air pollutants that adversely affect the health of animals and plants and the chemical composition of the atmosphere.
Acid rain forms when moisture in the air combines with nitrogen oxides and sulfur dioxide emitted by factories, power plants, and vehicles that burn coal or petroleum products.
Technological Standards. These other types of standard do not specify an end result, but determine the technology, techniques or practices that potential contaminants must adopt.
Emissions Standards. They are non-exceedable levels applied directly to the amounts of emissions that come from pollution sources. They are expressed in terms of the amount of material per unit of time, such as grams per minute.
Nonrenewable resources
Determinants of Depletion To what extent can a resource be renewable or not? It depends on two factors:
Time elapsed for its formation
Physical limit on the number of times a material can be recycled before it becomes unusable
Hotelling Principle
it refers to the neoclassical economy, within a market with perfect competition, where the owners of goods or non-renewable resources enter the debate; set temporary profit maximization
monopoly structure
A monopoly (from the Greek monos -one-, polein-sell-) is a market failure situation in which, for an industry that has a specific and differentiated product, good, resource or service, there is a producer (monopolist) offering that has a great market power and is the only one in the industry that possesses it.
Recycling is a term used in a general way to describe the process of using parts or elements of an article, technology, device that can still be used, despite belonging to something that has already reached the end of its useful life.
In an ecological vision of the world, recycling is the third and last measure in the objective of reducing waste; the first would be the reduction of consumption, and the second the reuse
The behavior of the user's cost over time can provide us with more evidence as to whether this investment has occurred in the economic scarcity of the resource that the price measurements seem to show.
The scarcity rent is equal to the difference between the price and the marginal cost of extraction. Barnett and Morse found that both real prices and real average costs were falling, so they concluded that scarcity was not reflected in either of these two economic indicators.
Externalities and market failures
Public goods
From an economic point of view, as Professor Panayotou proposes, the causes are in a dissociation between key variables for sustainable development: scarcity and prices, benefits and costs, rights and responsibilities, actions and consequences. These distorted relationships are generated as a result of two types of anomalies; market failures and government policy failures.
Externalities are also external effects of the consequences that a production process has on individuals or companies outside its industry.
Common Property Resources
Property rights do not refer to the relations between man and things, but rather to the relations of sanctioned conduct between people, which arise from the existence of scarce resources and which concern their use.
Property rights are, therefore, an instrument of society, which makes its owner enjoy the consent of the community in his actions, thus being able to foresee what he can expect in his relationships with other people.
The simple observation of the externality does not imply that something should be done in terms of economic efficiency.
The existence of high transaction costs may explain why government intervention occurs in this case (it is cheaper and allows reaching the social optimum)
Externalities function
Depending on the effect, externalities can be: negative or positive.
Depending on the type of activity, externalities can be production or consumption