Environmental Problems, Their Causes, and Sustainability 1

SunEARTHFigure 26-4 Ecological economistssee all economies as human subsystemsthat depend on resourcesand services provided by the sunand the earth’s natural resources.HeatNaturalCapitalAir, water,land, soil,biodiversity,minerals,raw materials,energyresources,and dilution,decomposition,and recyclingservicesEconomicSystemsProductionConsumptionDepletion ofnonrenewableresourcesDegradation anddepletion of renewableresources used fasterthan replenishedPollution and wastefrom overloadingnature’s waste disposaland recycling systemsRecyclingandreuseHow Can Technological DevelopmentsImprove Market Efficiency? ProducingMore with LessBetter technology and more efficient productionsystems can produce goods and services with fewerresources.All economists agree that technological developmentsand more efficient production systems can mean thatfewer resources are needed to produce the sameamount of a good or service.For example, between 1975 and 1995 the foodoutput of the United States and most countries perunit of land increased while the inputs of labor andresources such as water and fertilizer needed to produceeach unit of that output fell. However, ecologicaland environmental economists warn that such increasesin the efficiency of food production might notbe sustainable because of the degradation of soil, water,and other natural resources needed to producefood. These economists believe that this may be a factorin the leveling off of global grain production since1985 (Figure 14-16, p. 287).Economists agree that increases in technologicaland production efficiencies can cause significantchanges to supply, demand, and prices for a good orservice. For example, technological improvements canmake it cheaper to produce a good or service and increaseits supply at a particular price. This can cause itsmarket equilibrium point (Figure 26-2) to shift to alower price and thus benefit buyers. Trace such a shift inFigure 26-2.Scarcity of a resource can stimulate research anddevelopment for new and more efficient technologiesand production systems and a search for new reserves(Figure 16-10, p. 340) and for substitutes for such resources.It can also lead to increased recycling andreuse of a resource (Figure 16-16, p. 345).For example, scarcity of a metal such as copper hasled to improved technology for extracting and processinglower-grade ores, use of microorganisms that can beused to remove copper (and other metals) from its ore,increased recycling of copper, and use of aluminum as asubstitute for copper in wiring. This can lead to lowerprices and a rise in demand, which can eventually depletereserves, raise prices, and stimulate a new searchfor improved technology and substitutes.However, ecological and environmental economistswarn that as demand keeps rising at somepoint the harmful environmental effects of extracting,http://biology.brookscole.com/miller14587