GEOG 360 Lecture Notes - Lecture 5: Opportunity Cost, International Development
3 Sep 2016
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Document Summary
Or is an evil too that allows for exploitation of the earth. Everyone reacts to these, and markets manage them well. Projects, land use decisions and valuation determine the fate or human systems. Billions of people depend on the environment for their livelihoods. Compare social benefits and costs associated with alternative policies. Addresses efficiency of resources allocation, and includes a wide variety of impacts. Accounts for the direction and intensity of preferences. Considers economic value and opportunity cost of environmental protection. Can provide useful information, but should not be the sole criteria. Outcomes should be selected on what gives the greatest benefit to the greatest number of people. This does not mean that everyone is better off, it means that they could be. Thus, distribution of benefit should also be considered. Find the present value of an amount to be paid or received in the future. Helps capture the preference for having something now vs later.
