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Environment And Development

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Published in: Economics
5,567 Views

Slides summarizing AVSI Environment topic for Development Theory and Experience-II Delhi University course.

Parul G / Delhi

8 years of teaching experience

Qualification: M.A (Johns Hopkins University (USA) - 2015), B.A (Lady Shri Ram College for Women (LSR), Delhi - 2009)

Teaches: BA Tuition, Economics, Mathematics, Statistics

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  1. Environment and Development
  2. Definition Measurement/indicators "Sustainable develo ment" Current use of resources/energy unsustainable Economic growth has improved living environment Policies Challenges Why discuss about environment as part of a development economics course? Envt is a cause for concern because therefore Environment and development are related ' Complementarities exist Environment damage has impact on equitable growth Is it really?
  3. Relation environ no ent and ' Natural resources needed for production/economic activity/basic needs ' Land, air, water, minerals, timber, fruits/vegetation ' Environment damage/depletion has implications for future growth "Natural" capital=productive base ' Reduced environment quality/pollution impacts living standards/distributive justice ' nutrition/sickness/death—»productivity ' Women's status time spent in fetching water/fuel ' Livelihoods depend on natural resources (e.g. fisheries)
  4. Consequences of pollution/environmental degradation on the economy/welfare Nature of pollution Water pollution/scarcity Air pollution Waste mismanagement Soil degradation Deforestation Loss of biodiversity Atmospheric changes Effects Aquatic life/fisheries and related livelihoods; agri output affected due to water table depletion ; sanitation/diseases; time costs of fetching water; provision/purification of water (costs); desertification; lead in water (cognitive) Respiratory diseases; acid rain affects infrastructure; cardiovascular diseases; visibility (smog); skin/eye/throat irritation; cognitive disorders; Water contamination; landfills; disposal is an issue; dumping effluents in water bodies (fish can die); health/sanitation/aesthetic; wildlife is affected; bio-medical waste Agri output/livelihoods; low nutritive content in crops; salinity/toxicity; over us of fertilizers affects food chain Soil erosion (flooding/agri output); carbon sinks ; livelihoods dependent on forests; disturbance of water cycle (rainfall control); future effect on prices of resources Food chain disturbance; genetic variation Ozone depletion (cancer); icecaps melting (coastal flooding); weather variability
  5. COPYRIGHT @PARUL GUPTA ODf/• /ctiDe
  6. N/A
  7. World energy consumption 20 15 031 coal Nuclear Other 5 1970 1990 Year 2000 2010
  8. Global emissions of greenhouse gases so 30- 20- 10- 1970 1975 1980 1985 1990 1995 a PFCs, SFS C) NP other YO agriculture Other waste CHa agriculture C) C02 other 2) doforostation 1) 4) fossil fuel 2005 2000 sources: EDGAR 32 ECGAR FT20)3; a:ot.2t04: IEA. uses. FAO AFEAS, RAND
  9. ' There is some evidence of environmental destruction ' Increasing population, high energy of forests, increasing emissions: pressure on resources Claim: "we need to be careful about causing more damage"
  10. Global Oil Production 1965-2011 90.0 80.0 70.0 60.0 50.0 40.0 o 30.0 20.0 10.0 0.0 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 O Robert Rapier -- ConsumerEnergyReport.com consumer Energy Report
  11. n so-o irurna Lead TV' Figure 5: Selected Minerals Prices, 1967-2001 Source: United States Geological Service, A-finera/s Commodiry Summaries-
  12. Population with access to drinking water, urban and rural areas, 1990, 2000 and 2011 (Millions) 3 oco CCO 33.4 t 823 Urban unirf.ro«oå Rural 1 538 t 732 2 888 201 t Ck.:r
  13. 150 World Trade Volume IOO 60 80 40 Source: Neher/ands Bureau for Econome Po/i 30 1991 1993 1995 1997 1999 2001 Ana is scottgrannis.blogspot.com 2003 2005 2007 2009 2011 2013
  14. However, we also 45.) ' Declining prices of some resources (metals/minerals) ' Improved access to water and sanitation globally ' Improvement in technology and efficiency of resource use ' Globalization: technology transfer Claim: "we shouldn't sacrifice growth for the environment"
  15. Sustainable ' Exploring win-win opportunities that allow for coexistence of growth/development and environmental protection ' Twin goals: poverty reduction and conservation ' Protect livelihoods without hampering the environment further ' Holistic view of development
  16. Sustainable development: definition ' Brundtland Commission Report (1987) ' "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs" ' How do we identif ' Development ' Needs ' Ability
  17. Measuring "sustainability" ' Can we rely on GDP/HDI? prices" of non-marketed natural resources not captured ' Narrow concept ' Alternate: "capital approach" ' Sustainability==change in productive base ' Change in value of natural capita»optimal stock ' Aggregation issues ' Shadow pricing (hedonic/contingent valuation) ' Changes in the value of capital assets (human, physical, natural) ' "inclusive investment" or "genuine wealth"
  18. It is possible for GDP to rise while productive base decreases! Source: Arrow et al. (2004) Table 2 Growth Rates of Per Capita Genuine Wealth (1) Genuine (2) (3) (4) Growth Rate of Per Capita (6) Growth Rate of (7) Investment Growth Rate Population Genuine as Percent of Unadjusted Growth Wealth—before of GDP Genuine Vlka/th Rate TFP Adjustment Country Bangladesh India Nepal Pakistan China Su b-Saharan vAfrica Middle East/ North Africa United Kingdom United States (5) Grmolh Rate 0.81 0.64 0.51 1.13 3.64 028 -023 0.58 0.02 Per Capita Growth Genuine Rate of Wealth—after per capita GDP 7.14 9.47 13.31 8.75 22.72 -2.09 -7.09 7.38 8.94 1.07 1.42 2.00 1.31 3.41 -0.31 -1.06 1.48 159 2.16 1.99 224 2.66 1.35 2.74 2.37 0.18 -1.09 -0.57 -024 -1.35 2.06 -3.05 -3.43 1.30 0.72 0.30 0.54 0.63 0.59 8.33 -2.58 -3.82 229 055 1.88 2.96 1.86 221 757 -0.01 0.74 2.19 1.99
  19. Figure 3 Environmental indicators at different coantry income lcvcJs Percent 80 60 20 Population Without safe water 10,000 100,000 Per capita income (dollars, log scale) thban p"ulation withou! adequate sanitation Percent 70 40 20 100 1,000 10.000 100,009 Per capita income (dollars, log scale)
  20. Urban concen trations of particulate matter Micrograms per cubic meter of air 1,806 '11200 600 I OOO Per capita income (dollars, log scale) Urbpn concent-adons of sulfur dioxide Micrograms per cubic meter of air 100,000 50 20 10 100 1,000 10,000 Per cavita income (dollars, log scale)
  21. Municipäl wastes per capita Carbon dioxide emissions per capita• Kilogranus 600 4(X) 100 100,000 10,000 Tons . 16 12 100 1,000 1.000 10,0 Pcr capita inconte (do] lays, log scalé) Per capita-income (dollars, log scale)
  22. Observations ' Some pollutants "take care" of themselves ' As incomes rise, better technology and/or greater demand for environmental quality results in improvements ' Some pollutants do not see a declining/inverted U shaped trajectory ' no "automatic" relation between income and pollution Therefore, intervention needed
  23. Policies and intervention ' Why does the government have a significant role? ' Income won't "handle" the mess (previous slide) Missing markets, lack of private incentives, divergence between social and private marginal costs, lack of property rights ' Rationale of distributive justice ' Aims ' Remove price distortions ' Remove inefficient subsidies ' Promote competition ' Clarify property rights ' Facilitate Coasian bargaining ' Influence behaviour ' Taxes/subsidies/permits ' Quantitative restrictions (command and control)
  24. Role of global cooperation ' Technology transfer ' Cost sharing ' Recognition of responsibility due to historical emissions ' Support/aid for poverty reduction and population management ' Cooperative policies ' Trade, financial, fiscal
  25. Challenges ' Political will and local participation ' Informational constraints/uncertain science ' Weak institutions ' Long term nature of effects ' Role of discounting
  26. Refe re n C e s ' Meier and Rauch (Selections 10.1 and 10.5) ' A Very Short Introduction to Economics, by Sir Partha Dasgupta (Chapter 7)