Chapter 2 Economies Politics Public Policy Environmental Science

Chapter 2: Economies, Politics, & Public Policy Environmental Science 1001

2. 1 Economics & The Environment � Economics ◦ The social science that deals with the production, distribution, & consumption of goods and services and with theory of economies and economic systems. � Relationships between economic development and the environment ◦ There is a strong relationship between the level of development of a nation & the effectiveness of its public policies.

� Economic ◦ 1. systems Social & legal arrangements people construct in order to satisfy their needs & wants and improve well being. Centrally Planned Economies -> is one in which the total direction and development of a nation's economy is planned and administered by its government. 1. Free Market Economies -> Capitalism Classical economic theory considers land (natural resources), labor, & capital as the three elements that constitute the factors of production.

Money flows from households to business as people pay for good & services and from business to households as people are paid for labor

No system is perfect � Government still has to step in and control free markets with rules & regulations. ◦ S. 3217 - Restoring American Financial Stability Act of 2010 Changes the existing regulatory structure, such as creating a host of new agencies (while merging and removing others) in an effort to streamline the regulatory process, increasing oversight of specific institutions regarded as a systemic risk ◦ Troubled Asset Relief Program (TARP) $700 Billion ◦ Auto Bailout 60$ Billion

Trade is Global � World ◦ ◦ To enforce trade rules between nations Wealthy nations have been able to dominate � Global ◦ �A ◦ recession Countries like Greece, Japan, and Great Brittan are all in a recession. � Free ◦ Trade Organization trade agreements NAFTA (North American Free Trade Agreement) Sustainable Economy is being born Hybrids, Energy Star, Solar & Wind, etc.

2. 2 Resources in a Sustainable Economy � Resources flow into the economy from the enfolding ecosystem and are transformed by labor and capital (using energy as a resource). � It then passes out of the economy and back into the ecosystem as wastes.

� Produced ◦ ◦ ◦ Human-made structures, machinery, monetary savings & stocks, etc. Often the major focus of national economic planning. Easiest part of a nation’s wealth to measure � Natural ◦ Capital Goods & services supplied by natural ecosystems and mineral resources in the ground Renewable & Nonrenewable Also provides flow of services (ex. Oxygen production)

� Intangible ◦ Capital Human Capital The population and its physical, psychological, and cultural attributes. ◦ Social Capital The societal and political environment that people create for themselves in a society ◦ Knowledge Assets The codified or written fund of knowledge that can be readily transferred to others across space and time.

Measuring Economic Progress � Gross ◦ Refers to the sum of all goods and services produced (consumed) by a country is a given time frame. � Gross ◦ ◦ National Product (GNP) Domestic Product (GDP) Is the GNP minus the net income from abroad Most use this a the indicator of a countries economic health and wealth.

2. 3 Environmental Public Policy � The two main goals of environmental public policy are: ◦ The improvement of human welfare & the protection of the natural world � Environmental sets of issues: ◦ ◦ Public Policy addresses two 1. The prevention or reduction of air, land, water pollution 2. The use of natural resources like fisheries, forests, oil, and land.

Policy in the United States � Legislative ◦ Branch Two house (Senate & House of Representatives) Power to establish laws � Executive ◦ Branch The president and his cabinet Signs & implements laws � Judicial ◦ Branch The Supreme Court Interprets the laws

How does a Bill become a law? I’m just a Bill sitting here on Capital Hill.

Public Life Cycle � The development of public policy happens in four stages. ◦ ◦ 1. 2. 3. 4. Recognition Stage Formulation Stage Implementation Stage Control stage

Recognition Stage � Begins with early perceptions of an environmental problem � Often times this perceptions comes from scientific research � This stage does not carry much political weight. ◦ Ex. Researchers who discovered the effects of CFCs were ridiculed by manufactures and accused of being Soviet agents.

Formulation Stage � Solutions ◦ Ex. EPA bans CFC’s in spray cans in 1978 � Increased ◦ political weight The public is more aware and debate about public policy begins � Policy ◦ to problems/issues are formulated makers consider the three “E”s 1. Effectiveness Does the policy accomplishes what it is supposed to? ◦ 2. Efficiency Does the policy do it with the least cost? ◦ 3. Equity Is the financial burned evenly spread around to all parties involved?

Implementation Stage � The policy has been determined and the focal point moves to the regulatory agencies. � Regulatory agencies publish and enforce the new rules. � Industry leans how to comply with the new regulations. � Public concern & political weight decline

Control Stage � Policy maker continue to keep the problem under control by streamlining the policy. � Streamlining may result from political and scientific shifts on the policy. � Streamlining is done to make the policy more effective.

Economic Effects � The Cost of Policies Monetary Costs Political Costs Ex. American Clean Energy & Security Act Utilities to get 20% of power from renewable energy by 2020 Could cost about $22 billion in 2020 or $175 per household

Impact on the Economy � Deep Water Horizon oil spill lead to a 6 month ban on off shore drilling. Resulted in an estimated loss of $2. 8 billion and 10, 000 jobs

Progress though policy � EPA has made progress through policy: Total emissions from 5 principal air pollutants have been decreased by 57% since 1970 Acid deposition has decreased by 33% Recycling has increased from 7% in 1970 to 33. 4% in 2007

Politics & The Environment Political Parties Battle over policies � Often have different views � Special Interest Groups � Use lobbyist to use influence to try to convince congress to vote in favor of their issues. �

Bush Years � Began a program that reversed US environmental policy Withdrew from Kyoto Protocols Softened Air & Water quality Standards Energy policy favored heavy use of fossil fuels

Time for change � Obama administration sought to change role of science in government. “Scientific decisions based on facts not ideology” Changed rule about endangered species Climate change legislation

Citizen Involvement � GET INVOLVED!!!!!