NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS

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NATURAL RESOURCES AND ENVIRONMENTAL ECONOMICS

• A.J. DAVIDSON
• SARAH DILLICK
• NICOLE KIDWELL
• HEATHER KOCHER
• JEFF RICE
• R. EDWIN RILEY
• CAIT WINGFIELD

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TOPICS BEING COVERED

• ECONOMIOCS OF POLLUTION
• ECONOMICS OF RECYCLING
• NATURAL RESORCE ECONOMICS
• ECONOMIC IMPACT OF E.P.A.
• ENVIRONMENTAL ECONOMICS, EXTERNALITIES
• SUSTAINABLE/ORGANIC FARMING
• FARMLAND PRESERVATION

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ECONOMICS OF POLLUTION

• What is Pollution?
• Special Case of Habitat Destruction
• Chemical destruction rather than physical

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TYPES OF POLLUTION

• Air Pollution
• Water Pollution
• Solid Waste Pollution

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INDUSTRIAL AIR POLLUTION

• Release of particles into the earths atmosphere
• caused by the burning of fuels for energy
• Release of noxious gases
• caused by chemical reactions

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INDUSTRIAL WATER POLLUTION

• Contamination of water by foreign matter
• Effects oceans, surface, and groundwater
• Direct and Indirect
• direct is contaminants going straight into
  waterway
• indirect is a result of rainwater washing
  pesticides into water supply

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SOLID WASTE POLLUTION

• Disposed of two ways
• landfills
• incineration
• Rain water hits the decomposing material of
  landfill and carry it to waterway
• Sulfur Oxide, and nitrous oxide given off while
  burning

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LEGESLATION TO PROTECT ENVIRONMENT

• The Clean Air Act (1970)
• Established National Ambient Air Quality
  Standards
• The Federal Water Pollution Control Act(1972)
• Restore and Maintain the Chemical, physical,
  and biological integrity of the Nations
  Waterways
• The Resource Conservation and Recovery Act(1976)
• Aimed to reduce the amount of hazardous waste
  generated

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MEANS TO COMBAT INDUSTRIAL POLLUTION

• STACK SCRUBBERS FOR SMOKESTACKS
• FILTRATION SYSTEM FOR WATER SUPPLY
• COLLECTION AND TREATMENT SYSTEM FOR WASTE

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WHAT DOES THIS MEAN FOR CONSUMERS?

• Lower wages for employee
• lower standard of living
• Higher production costs
• higher cost at the counter
• lower demand for the product
• less profit for the company

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CONSUMER ENERGY USE AND POLLUTION

• Cause pollution from energy use in homes
• Cause pollution from vehicles they drive
• U.S. is responsible for 25 of world pollution

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GREEN ENERGY

• GREEN ENERGY- AN ENERGY THAT IS PRODUCED IN WAYS
  THAT REDUCE POLLUTION AND ENVIRONMENTAL IMPACTS
• more efficient energy production
• renewable and cleaner fuels
• alternative energy sources

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ALTERNATIVE ENERGY SOURCES

• SOLAR POWER
• USE OF THE SUNS RAYS TO POWER HOMES
• RELITIVE LOW COST TO SET-UP

• WIND POWER
• CAPTURE THE WINDS POWER FOR ENERGY USE

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OTHER WAYS CONSUMERS COMBAT POLLUTION

• RECYCLING
• BIO-FUEL
• HYBRID VEHICALS
• ENERGY EFFICIENT APPLIANCES

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CONSUMER ENERGY SAVINGS
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IN CONCLUSION

• Pollution is inevitable
• Industry as well as consumers can only utilize
  resources available to minimize the destruction
  of the environment
• By taking these simple measures consumers can
  ensure environmental harmony

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The Economics of Recycling

• AJ Davidson

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Things we Recycle

• The Big Four
• Paper, plastic, glass, and aluminum.
• Other Metals
• Tin, Copper
• Automotive
• Batteries, engine oil.

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Why we Recycle

• To Preserve the Resources
• The big four are the resources that are the most
  exploited
• Save companies from expanding their mining
  operations
• Reduce the pollution caused by the mining

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Where is the Money

• Recyclers
• Oligopoly
• Selling raw materials
• to producers
• Exports
• Collection contracts
• People
• Cash in
• discounts

• Expenses
• Labor
• Sorting
• Fuel

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The Market

• Recycled Goods
• Large Demand
• Recycled Paper
• Aluminum Cans
• Materials
• cheaper
• Aluminum
• Copper

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Conclusion

• Recycling
• Prevents excess pollution
• Preserves natural resources
• Provides cheap resources
• Just about anything can be recycled

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Natural Resource Economics
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Introduction

• Economies use natural resources to make products
• Resource degradation occurs when a source is
  overused
• Degradation not accounted for in GDP

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Air

• Essential to life on Earth
• Impacts of Industrial and Agricultural Revolution
• Health problems from poor air quality
• Good air quality has valuable benefits

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Water

• Limited resource 70 used for irrigation
• Freshwater is unevenly distributed
• Water is shared by consumers/ nations
• Water use regulations in the High Plains

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Forest

• Timber is renewable with sustainable practices
• Provide many ecological benefits
• Watershed protection
• Habitat for plants and wildlife
• Air purification and carbon sinks

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Land Use

• Agriculture accounts for 38 of world land use
• Soil management and conservation practices
  maintain productivity
• Urban sprawl into farmland

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Fossil Fuels

• Nonrenewable resource
• Provide more than half of electricity in U.S.
• Provide nearly all the transportation fuel in
  U.S.
• Suspected factor of global warming

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Conclusion

• Population growth has increased demands for
  natural resources
• Many of the resources are limited
• Sustainable use must be practiced or renewable
  alternatives developed to offset increasing
  demand for natural resources

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Sustainable Farming

• Stability of a farming system overtime
• Resilience return to their original states
  rapidly and reliably.
• Resistance involves the likelihood that a system
  will respond to a disturbance.
• Drought, Pest Invasion

• Meets the needs of todays booming generation
  without compromising future generations abilities
  to farm.
• Budgeting
• Economic Viability

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Natural Resource and Environmental
EconomicsSustainable/ Alternative/ Organic
Farming
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I view the farmer who wants to leave the land in
better shape when he leaves it to the next
generation as the role model for civilization.
Charles Walters, Jr.
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Alternative Farming

• Locally sold foods use less energy and money due
  to transportation costs.
• Average conventional fruits and vegetables travel
  1500 miles before they reach there point of
  destination.

• Reduce input costs
• Preserve Natural Resources
• Protect Human Health

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Organic Farming

• Managed to respond to site-specific conditions by
  integrating cultural, biological, and mechanical
  practices that foster cycling of resources,
  promote ecological balance, and conserve
  biodiversity (USDA).

• Relies on
• - Crop Rotations
• - Green Manure
• - Biological Pest Control
• - Mechanical Cultivation
• Controls
• - Pests
• - Weeds
• - Adds productiveness to the soil

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Organic Foods Production Act

• Established in 1990 to make a standard to what is
  considered Organic Food.
• Organic producers is rapidly increasing
• Sales of Organic foods rose from 6 billion in
  2000 to 10.4 billion in 2003
• Increasing consumer demands are increasing supply
  amounts making organic foods cheaper for
  consumers.

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Organic Food Sales
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Future of Farming

• There is expected to be an increase in the
  environmentally friendly ways of farming
  throughout the next several years.
• As subsidies become greater and prices continue
  to rise we should see more and more people
  switching to new ways of farming to protect the
  land and the environment in which we live in.

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• Economic Impact of EPA

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Environmental Protection Agency

• Protect human health and provide a cleaner
  environment
• Develop and enforce regulations
• Performing environmental research
• Further environmental education
• Publish information they obtain
• Repairing the damage done prior to 1970

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Biggest environmental issues

• Prevent global warming

• Laws
• Pollution Prevention Act (PPA)
• Clean Water Act (CWA)
• Clean Air Act (CAA)

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Pollution Prevention Act

• Focused the American industry, government, and
  public attention on reducing the amount of
  pollution through cost-effective changes in
  production, operation, and raw materials used
• Practiced with recycling, source reduction, and
  sustainable agriculture

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Clean Water Act

• Regulate pollutants going into the waters of U.S.
  quality standards for surfaces waters
• Set waste-water standards for industry
• Illegal to expel pollutants into navigable waters
  
• Permits control limited discharge by industrial,
  municipal, and other facilities
• Example Erin Brockovich

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Clean Air Act

• Regulate hazardous air emissions from stationary
  mobile sources
• protect public health welfare

• major sources
• -stationary source that emit substantial amounts
  of air pollutants per year
• area source
• -local or minor sources that emit minor pollutants

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Climate change

• Climate economic analysis
• -analyze the economic environmental effects of
  potential climate changes
• four main stages raw material acquisition,
  manufacturing, recycling, waste management

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Economic Impact Analyses

• Describes quantifies the reallocation of
  societys resources in response to a regulatory
  action
• Industry or process-specific technology-based
  rules for particulate matter, ozone, nitrogen
  oxides, sulfur dioxide, lead, etc.
• Evaluation impacts of a specific standard

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Conclusion

• EPA not only protects repairs the environment,
  but educates people about the causes effects
• Huge economic impact considering the depleting
  ozone layer major pollutants contributing to
  global warming

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Environmental Economic Externalities
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Externalities

• Over spill effects arising from the production
  and or consumption of gods and services, which
  there is no appropriate compensation paid for the
  effect of the usage
• Create large unnecessary expenditures
• Do not effect individual financially, but society
  as a whole
• Create separation between the private costs and
  the social costs of producing product

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Negative ExternalitiesOf Consumption

• Consumers create externalities when they purchase
  and consume goods and services
• Examples would include pollution from
  automobiles, aircraft, litter, noise population,
  smoking, and alcohol abuse

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Negative ExternalitiesOf Consumption
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Negative Externality For Production

• Producer only interested in maximum profits
• Only take into account private costs and the
  private benefits associated with creation of
  product
• Market failure
• Example would include concentrated use of
  chemical fertilizers

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Negative Externalities Of Production
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Positive Externalities

• Created when the marginal social benefit of
  production and or consumption exceeds the
  marginal private benefit
• Examples would include industrial training by
  firms, researching into new technologies,
  education, health provision and Healthcare

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Positive Externalities
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Conclusion

• Whether through production or consumption, the
  consumer and the producer is in control of extra
  costs
• Government regulations vs. value of product
• Never ending battle

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Farmland Preservation
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Farmland Preservation Introduction

• Simple Complex
• Urban expansion
• Macroeconomics
• Microeconomics
• Approaches

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Farmland preservation Cont.

• Urban Sprawl
• Land Use?
• Impermanence Syndrome

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Farmland Preservation

• Macroeconomics

• Microeconomic

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Microeconomics Success

• Key Elements
• Annual gross outputs exceeding 50 million
• Agricultural zoning ordinances
• Urban growth boundaries
• Easements
• Focus on protecting farmland to drive land use
  planning

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Approaches

• Bottom-up
• Initiated by landowner
• Opportunistic
• Top-down
• Government initiated
• Allows for prioritization
• More pro-active
• Law of diminishing marginal return

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Farmland Preservation Conclusion

• Federal actions
• State actions
• Local actions

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