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The Relation between Capitalism and Environment - Coggle Diagram
The Relation between Capitalism and Environment
Global Carbon Budget
A measure of how many more tons of carbon humans can collectively emit before we eclipse the 2 degrees Celsius warming threshold
Effects of carbon additional greenhouse gases, such as nitrous oxides and methane
Human-produced greenhouse gas emissions
clearly pose an imminent and serious threat to the stability of our climate system.
If we continue on our current emissions trajectory, we could max out our budget by as early as 2045
Promises of Capitalism
Consumers drive the demand for products, and suppliers will only produce at the equilibrium quantity dependent on consumer demand
Capitalism is the most efficient method of allocating
resources
It will not convert resources into products unless those products are going to benefit society more than they will cost society
As the economic system expands, society will consequentially, improve at an exponential rate
The finite nature resources is not a concern because when any given resource becomes scare, the market will naturally produce an alternative
Even when the resources required
to make the product are exhausted, the demand for the product will still exist
Capitalism is premised on the law of supply and demand
This law assumes that every consumer rationally evaluates each purchase that they make using a cost benefit analysis
Capitalism approach to Climate Change
We are able to remain within the confines of our carbon budget will be the first test of our capacity to ultimately correct climate change
Capacity for national and global economies to intentionally
reduce resource consumption in order to deal with climate change.
Estrategies
Inhibit the amount of carbon that we emit by limiting the amount of fossil fuels that we burn
If people do not believe in global warming, or do not believe that their actions are affecting the climate
They will have absolutely no reason to reduce their consumption of fossil fuels and other products that diminish the quality of our environment.
Consequences
Globalization
Expansion free trade.
GDP
Exchange natural resources for monetary wealth in the
form of goods.
Capitalist economies
The more resources a nation uses, the more that nation grows.
The more that nation grows, the less resources the nation has.
The free market is constantly expanding, assisted by the removal
of governmental barriers to natural resources extraction,
Society
As we consume more resources and accumulate more wealth, we expect a higher quality of goods and a higher quality of life in general.
Afectations
Every nation seeks to improve its perceived prosperity, global prestige, and cumulative wealth, as measured by GDP.
Self-perpetuating cycle that will eventually exhaust all of the
world’s natural capital if it continues unabated.
Matthew Kahn
"Capitalism is the key to simultaneously improving the quality of our environment and lifting the global population out of poverty."
Ideals of capitalism
Priority it places on unrelenting economic growth
Resource consumption
Edict of supply and demand,
Permeate and influence practically every national economy.