BIOL 2310 Lecture Notes - Lecture 5: Genuine Progress Indicator, Subsidy, Bioprospecting
Document Summary
Voluntary transaction: all parties expect benefit, but those outside the transaction directly may be harmed. Negative externalities can harm society when talking about open access resources. Negative externalities are so great there is no balance between industry and nature. Financial support provided by government to industries that are providing important resources that are becoming too costly to produce without these subsidies. Incentive to encourage business to continue to do something the government deems important. Benefits provided to us by a well functioning environment. Important role in water purification, flood protection, shoreline protection. Consumptive use- not bought or sold, locals may depend on them. Substitute cost approach- consider an items worth if it had to be purchased, but can miss hidden. Productive value- items sold nationally and internationally. Non consumptive, non productive use value from items in nature. Value over the long term of biodiversity being there in the future to fulfill services and provide benefit to society.
