BIO 227 Lecture Notes - Lecture 5: Genuine Progress Indicator, Environmental Performance Index, Gross Domestic Product
Document Summary
Principle of voluntary exchange: monetary transaction will only take place when it benefits both seller and buyer. Natural resources include the abiotic and biotic components of an ecosystem: water, land, soils, rocks, forests, all types of vegetation, animals, fossil fuels and minerals. Externalities: hidden, unknown or unseen consequences of exchange of goods and services. Externalities can be considered positive (unexpected windfall) or negative (costs to others who do not benefit) Open-access resources: natural resources are not controlled by individuals, but are collectively owned by society. Measures of national productivity: gross domestic product, doesn"t consider environmental impacts. Index of sustainable economic welfare: genuine progress indicator measures effects of poverty and pollution on human health, environmental performance index (epi, 20 environmental indicators to rank health of ecosystems. The value of biodiversity: consumptive use value, productive use value.
