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Botkin Environmental Science Earth as Living Planet 8th txtbk

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CHAPTER<br />

7<br />

Dollars and<br />

<strong>Environmental</strong> Sense:<br />

Economics of<br />

<strong>Environmental</strong> Issues<br />

LEARNING<br />

OBJECTIVES<br />

Why do people value environmental resources?<br />

To what extent are environmental decisions b<strong>as</strong>ed<br />

on economics? Other chapters in this text explain<br />

the causes of environmental problems and discuss<br />

technical solutions. The scientific solutions, however,<br />

are only part of the answer. This chapter introduces<br />

some b<strong>as</strong>ic concepts of environmental economics<br />

and shows how these concepts help us understand<br />

environmental issues. After reading this chapter, you<br />

should understand . . .<br />

A New England common illustrates the tragedy of the<br />

Commons, one of the key ide<strong>as</strong> of <strong>Environmental</strong> Economics.<br />

How the perceived future value of an environmental<br />

benefit affects our willingness to pay for it now;<br />

What “externalities” are and why they matter;<br />

How much risk we should be willing to accept for<br />

the environment and ourselves;<br />

How we can place a value on environmental<br />

intangibles, such <strong>as</strong> landscape beauty.<br />

People around the world are wearing m<strong>as</strong>ks<br />

to protect themselves against swine flu.<br />

(Source: http://www.baltimoresun.com/news/<br />

nation-world/ny-swineflu-photos,0,859331.<br />

photogallery [Getty Images Photo / May 2,<br />

2009].)

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