Describe the relationship between the environment and economic development?
Environmental issues affect and are affected by economic development
What are some of the consequences of environmental problems for health, security and productivity?
- Loss of agricultural productivity
- Prevalence of unsanitary conditions created by a lack of clean water and sanitation
- Dependence of biomass fuels and pollution
- Airborne pollutants
- Increased risk of conflict linked to environmental resources
What may poverty lead to with regard to the environment?
The non-sustainable use of environmental resources
What do classic market failures often lead to?
Excessive environmental degradation
How may the poorest interact with the environment?
They may find themselves as both agents and victims of environmental degradation
Why may the poor be victims of environmental degradation?
- The poorest often live in environmentally degraded lands which are less expensive whereas richer groups avoid them
- Living in less productive areas gives the poor less opportunity to work their way out
- People living in poverty have less political influence to reduce environmental damage where they live
How can the poor be agents of environmental degradation?
- The high fertility rate of people living in poverty often adds to pressure on environmental resources
- Those living in poverty may make decisions within a shorter time horizon or by necessity
Define sustainable development
Meeting the needs of the present generation without compromising the wellbeing of future generations
Why is environmental capital important in developing countries?
Because environmental capital makes up a larger fraction of total capital
Why may inefficiencies arise with use of the environment?
Because it is considered a public good, this is known as the tragedy of the commons
Why do agents fail to take account of this important externality?
Because it doesn’t impact them, as each uses more of the common resource, the average return is used for all users
What is the tragedy of the commons?
The overuse and underinvestment in commonly owned resources
What are some possible solutions to the tragedy of the commons?
- Privatisation
- Local social enforcement mechanisms
How could the tragedy of the commons benefit from privatisation?
- Small farmers may benefit from extended tenancy or ownership
- Larger firms could generate local employment; but the community may lose the benefits of the common resource
What is the limit that the tragedy of the commons can be solved by privatisation?
If common resources are to be privatised - who should buy the common resource
How could the tragedy of the commons benefit from local social enforcement mechanisms?
- Traditional societies have sometimes responded effectively with social enforcement mechanisms based on common property design principles
What is the limit that the tragedy of the commons can be solved by social enforcement mechanisms?
They are very difficult to maintain
What did Elinor Ostrom find to be conditions which helped systems that were more likely to endure?
- Clearly defined boundaries
- Proportional equivalence between benefits and costs - allocated based on inputs
- Collective choice arrangements - rules are modified collectively
- Graduated sanctions - violating the common rules leads to increasingly severe punishment
- Conflict resolution mechanisms
Why was it believed that pollution and environmental degradation first rose then fell with increases in income per capita?
- Institutional reform
- Public goods provision
- Improvement in institutional quality
What are some of the main effects of climate change in poor countries?
They will be disproportionately effected by:
- Social degradation/ desertification
- Dwindling water resources
- Rising sea levels (Tuvalu)
Why will high income countries be less vulnerable to climate change?
- A smaller proportion of their economy is in sectors such as agricultural that are most sensitive to climate change
- They are located in cooler higher latitudes and therefore further from critical temperature threshold for humans and crops
Which countries are likely to be those worst effected by climate change?
Those in Africa
How much have estimates suggested the annual losses to GDP in Africa be?
It ranges from 0.5% to 23.5%
Why may developing countries be worse off?
- Exposure
- Sensitivity
- Adaptive capacity
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0. Introduction to development9
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1. Measuring development42
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2. Development as growth and the Linear-stages theory38
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3. Governments and institutions50
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4. Human capital46
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5. Saving, credit and insurance63
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6. Contemporary Theories of development39
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7. Agriculture and development62
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8. Structural transformation35
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9. Urbanization64
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10. Population growth40
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11. Geography and climate34
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12. Natural resources38
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13. Conflict and development44
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14. Foreign aid41
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15. Poverty and inequality38
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16. Development and the environment35
