BIOL 2310 Chapter Notes - Chapter 3: Precautionary Principle, Market Failure, Externality
Document Summary
Economics- the study of the transfer of the production, distribution, and consumption of goods and services. Externalities- hidden costs and benefits of a transaction(can be negative or positive) Open-access resources- are collectively owned by society at large or by no one, like water, air,etc. Tragedy of the commons- value of the open-access resources is gradually lost to all of society. Market failure- when the balance of supply and demand fails. Environmental economics- places value on components of the environment. Ecological economics- transdiscipline aimed at developing a sustainable world. Environmental impact assessments-consider the present and future effects of a project on the environment. Cost-benefit analysis- compares the value gained against the cost of a project or resource use. Can be difficult to use and inaccurate. Precautionary principle- may be better to not approve a project and err on the side of caution in order to avoid any potential harm. Perverse subsidies- exert adverse effects on the environment and economy.
