ES101 Lecture Notes - Lecture 22: Natural Capital, Substitute Good, Externality
2 Feb 2018
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Es101 week 11, lecture 2: economics, environment, & sustainability. 10 mc questions (harder than ones on midterm) 1-2 sentence answers (short answer questions, 12 of them choose 10) ^these sections will be based on content after midterm. Final questions is worth half the marks on the exam. Synthesis questions read a scenario and apply the principles learned in es101 to answer the question (answer = no more than two pages); no right or wrong answer. Key assumptions in traditional economic theory: economic growth is necessary, continuous economic growth should be the end goal of policy & decision- making, the potential for economic growth is virtually unlimited. Problems with these assumptions: continuous economic growth implies continuous growth in consumption, this in turn requires never-ending supplies of natural resources or finding perfect substitutes when a resource runs out. Ignores the limits of human technical innovation: treats as externalities elements of the environment that have no ownership rights.
