EC238 Study Guide - Comprehensive Midterm Guide: Point Source Pollution, Natural Resource Economics, Kuznets Curve
Document Summary
Important concepts: neoclassical economics, ecological economics, environmental economics, natural resource economics. We have finite human-made and natural resources (non-renewable/deplete able resources & renewable resources given finite resources, our inability to satisfy all our wants and desires, give rise to the problem of scarcity. Scarcity -> choices -> tradeoffs -> benefits; costs; marginal analysis. Mb = mc influenced by incentives, both positive and negative. Neoclassical economics vs. ecological economics deep understanding of ecology use natural laws (the theory of thermodynamics) Debate between these two discources include but not limited to the following three steps. 3. whether it is possible to sustain unlimited economic growth whether human-made capital can be a substitute for natural and environmental capital what should be the criteria to make decisions regarding the future (integration issues) Weak sustainability cost-benefit analysis and discounting the future. Strong sustainability sustaining and achieving a sustainable future.
