Name______Date______Section ______

Chapter 2 Economics and Environmental Policy

How can we best balance our own interests and needswith the health of the environment?

Lesson 1: Economics(pages 35- 41)

Guiding Question: How is sustainability affected by economics?

Vocabulary: Know the definitions of each term.

  • Economics – the study of how resources are converted into products& services & how those products & services are distributed and used.
  • Supply – the amount of a product or service offered for sale at a given price.
  • Demand – the amount of a product or service people will buy at a given price if free to do so.
  • Cost-benefit analysis – a method in which decision-makers compare what will be sacrificed and gained by taking a specific action.
  • Ecological economics – the field of economics that recognizes the relationships between ecosystems and economic systems.
  • Environmental economics – the field of economics that links environmental and economic costs.
  • Non-market value – the value that is not included in the price of a product or service
  • Market failure – a situation in which a free economy, operating on its own, does not distribute resources fairly
  • Ecolabeling – a labeling system that tells consumers which brands are made with processes that do not harm the environment.

A. What is Economics? (p.36) Guided Reading:

  1. What does economics have a lot to do with?Has a lot to do with human behavior and how people interact with nature.
  2. What are goods?services? Goods – manufactured materials

Services – work done for others as a form of business.

  1. List and briefly describe three types of economies.

a. centrally planned – government decides what is made, how, & who.

b. free market – individuals decide

c. mixed economy – both government & individuals decide

  1. What is the expected outcome of the relationship between supply and demand? Equilibrium is reached when the amount produced = the demand.
  2. What is the goal of a cost-benefit analysis? Compares what is sacrificed gained by a specific action.

B. Economics and the Environment (p. 37) Guided reading:

6.What are natural resources? Give examples cited. Substances & forces people need to survive. Ex: sun, H2O, trees, rocks and fossil fuels

7. What happens to a vacation destination when a local sewage

treatment facility can’t keep up with the waste generated? Waste pollutes

H2O, swimming is closed, no tourists, businesses suffer.

8.Describe four assumptions traditionally made in economics that can

negatively effect the environment.

  1. Internal costs & benefits – consider external
  2. Short-term effects – watch environment
  3. Endless resources – do not run out, need to replant
  4. Growth – needs to be sustainable

C. Economics and Sustainability (p. 39) Need to consider conserving

resources & reducing harm to the environment.

9. What is the new trend in economics regarding the environment?Need to consider conserving resources and reducing harm to the environment.

10. What do many ecological economists advocate? Economies that don’t grow or shrink but are stable and sustainable.

11. Name three non-market values. Aesthetic, cultural, scientific

12. When smokestacks from factories emit harmful chemicals that harm trees and pollute water sources what has occurred?Market failure

13. What are two benefits achieved by operating a business in an environmentally sustainable way?Make money and improve your image

Lesson 2: United States Environmental Policy (pages 42-47)

Guiding Question: How do environmental policies protect the environment?

Vocabulary: Know the definitions of each term.

  • Policy – a formal set of general plans & principles that guides problem solving & decision making in specific instances.
  • Environmental policy – a general plan & principle related to the interactions between humans and the environment.
  • Environmental Impact Statement (EIS) –a description of the effects a proposed project will have on the environment, such as a new dam or highway

A.What is Environmental Policy? (p.42) Guided Reading:

14. What is the aim of modern day environmental policy?Protect environment, our natural resources

15. The three branches of our government are listed below. Include what each is made up of.

Legislative Branch / Executive Branch / Judicial Branch
A law is proposed to Congress – House of Representatives & Senate). If both Houses pass, it goes on to the President. / If President approves it becomes enacted. If vetoed, it is rejected. Enacted legislation becomes law. / Supreme Court and lower courts interpret laws

B. History of U.S. Environmental Policy (p. 44) Guided Reading:

16. Laws making up U.S. environmental policy can be divided into three periods. List them and give a brief description.

  • 1st – 1780’s – 1800’s laws to manage public lands
  • 2nd – late 1800’s – mid 1900’s laws to reduce environmental problems
  • 3rd – mid to late 1900’s technology era EPA

17. Who is Rachel Carson and what was her contribution to environmental science? Wrote Silent Spring – brought attention to DDT, pesticides and health effects

C. Modern U.S. Environmental Policy (p. 46) Guided reading:

18. What improvements have occurred due to environmental policies enacted in the late twentieth century?1977 – Clean H2O Act, Environmental Impact Statement

19. When was the first Earth Day? What do you think is its intent?April 22, 1970

20. What is the EPA and its responsibilities?Regulating H2O, air and solid wastes, conduct and evaluate research, monitor the environment, and enforce quality standards.

21. What is the purpose of the Clean Water Act?Clean H2O Act 1972 – regulate the discharge of wastes especially from industry into rivers. It protects wildlife and grants permits to discharge pollutants on a limited basis.

22. Why did so many major environmental advances occur in the ‘60’s and 70’s?Public opinion – evidence of environmental problems. Political climate was supportive.

23. When did the backlash against these environmental policies occur and why? 1980’s – many felt laws put too much of an economic burden on businesses

24. What problems are now leading the U.S. and other nations to a new era of environmental policy?Global warming and climate change

25. What is the new focus of our government in relation to environmental issues?Cleaning up toxic chemicals, achieving sustainability, conserve energy, develop renewable energy, and reduce carbon emissions

Lesson 3: International Environmental Policy and Approaches (p. 48-55)

Guiding Question: How can governments work with each other and citizens to form sound environmental policy?

Vocabulary: Know the definitions of each term.

  • Command-and-control approach–government sets rules and threatens punishment for violations
  • Subsidy– governments give cash or public resources to encourage something or lower the price. May be a tax break for environmentally friendly practices.
  • Green tax– taxes imposed on companies that harm the environment
  • Cap-and-trade– A government decides on an acceptable amount of pollution a factory can emit. If a factory is efficient and pollutes less it can trade (sell) some of its permits to another factory that pollutes more.
  • Lobbying– trying to influence an elected official to support your interests.

A. International Environmental Policy? (p.48) Guided Reading:

26. What is meant by the statement “environmental problems are not restricted to the nationalborders drawn on maps”? Cite examples from the reading.Laws of one nation have no weight in another. Ex: Tijuana River, air pollution carried by winds, migrating animals.

27. What is the purpose of the United Nations?Helps to shape international environmental policy, promote peace, and solve economic, social, cultural & humanitarian problems.

28. What is the main objective of the European Union?Promote Europe’s economic & social progress. Produce current environmental data & analyze to guide policy.

29. What does the World Trade Organization promote?Promotes free trade, can impose monetary penalties on nations not complying. Ex: cleaner burning gasoline in US cities required by EPA. Brazil & Venezuela said rules discriminated against their petroleum products so EPA caved.

B. Approaches to Environmental Policy? (p.50) Guided Reading:

29. Why might a business or individual be given a tax break by the government? If they participate in ecofriendly actions by reducing emissions.

30. List some examples of local incentives.Financial, may charge residents for waste disposal, give rebates for water efficient toilets & other appliances.

C. The Environmental Policy Process (p.53) Guided Reading:

31. Outline the six steps of the process given.

  • Identify the problem
  • Identify causes of the problem
  • Generate a solution
  • Get organized
  • Gain access to influential people – lobby

32. Is there anything you can do to contribute?

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