Adam Smith and The Wealth of Nations: In Context May 29, 2012 1.
Adam Smith and The Wealth of Nations
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Transcript of Adam Smith and The Wealth of Nations
A sub-primer on Ecological Economics:Adam Smith’s “Invisible Hand”, Market Failures, Ecosystem
Services, and The Monetization of the Human Ecological Footprint
Don’t get me wrong about Adam Smith.I believe modern Neo-Classical Economists have
mis-interpreted him
Adam Smith andThe Wealth of Nations
Space as a Market Failure…
Classic Market Failures
Ecosystems and Market Failure
The Earth from Space at Night:Explorations of the Human-Environment-Sustainability
Problematic using Nighttime Satellite imagery
Outline
Where in the Universe could you take this photograph from?
Example of Cloud Screening over Italy
Nighttime Satellite Imagery Geo-location, Time Series Analysis, Spectral information, and
Spatial Patterns allow for the differentiation of City Lights, Gas Flares, Squid Fishing, and Forest Fires
Estimation of urban populations globally How Good are the ‘known’ numbers and who cares?
When did the world population reach 6 billion?
Proof of Concept with U.S. Data
Using these Methods across the Globe:
What was the total global population was in 1996?
6.3 Billion rather than 5.9 Billion
Disaggregate or ‘Intra-Urban’ estimates of Population Density
Does Light Intensity within an urban area correlate with Population Density?
What’s Going on in 1 km2?(this lesson on ‘scale’ informs the Space Station Photography movie later)
Graphical Representation of the Model
What do the Errors look like?
Do Low Light Levels Map ‘Exurban Areas’?
Metro Denver Area with inset of Highway 285 Commuter Shed South West of Denver
Suburban and …
Suburban and Exurban Homes
Day & Night images of ‘Exurbia’
Making Disaggregate (a.k.a. finer spatial resolution)
Maps of Economic Activity
Scatterplot of Night Light Energy & PPP of GDP for 208 nations
Global map of Economic Activity as measured by Nighttime Satellite Image Proxy
Coastal Wetlands and Storm Protection: A spatially explicit estimate of ecosystem service value
Ecosystem Services as ‘Public Goods’
Valuation of Ecosystem Services:Putting a dollar value on a ‘non-market’ service
‘Geography’ or ‘Why Space Matters?’:Spatially Explicit Valuation of Ecosystem Services
The Data Story for Valuation of Storm Protection from Coastal Wetlands…
The Damage Table (N = 34 Hurricanes)
The Storm Tracks (N = ~100)
Buffer Existing Storms to 100 km (50 km per
side) and Match to Damage Table (N=34)
Fleshing out the Table: 1) Population in Swath
Fleshing out the Table: 2) GDP in Swath
Fleshing out the table: 3) Wetlands in Swath
ln (TDi /GDPi)= a + b1 ln(gi) + b2 ln(wi) + ui
TDi = total damages from storm i (in constant 2004 $US);GDPi = Gross Domestic Product in the swath of storm i (in constant 2004 $US). The swath was considered to be 100 km wide by 100 km inland.gi = maximum wind speed of storm i (in m/sec)wi = area of herbaceous wetlands in the storm swath (in ha). ui = error
The Aggregate Conclusion
Mapping Impervious Surface Area with Nighttime Satellite Imagery
We have paved over 110,000 square miles
(Ohio is about 116,000 square miles)
Paving the Planet: Mapping and Monetizing Human Impact on the Earth
Approach and Assumptions
Global Estimates of ISA have been developed using simple OLS models
derived from DMSP nighttime imagery and LandScan Population Density
These Models are applied Globally
Impervious Surface Area is a reasonable proxy measure of Ecological Footprint
Mapping the Dollar Value of Ecosystem Services
Global Datasets of Net Primary Productivity have been developed and explored
This is hopefully a provocative exercise exploring ideas of carrying capacity, I = P*A*T, Ecological Footprints,
Ecosystem Service Valuation, and Sustainable Development
Spatially Explicit Representation of$ Value of NPP - $ Cost of Impervious Surface
Aggregate National Map of Dollar Benefit of Ecosystem Services using NPP proxy
Top 20 ‘Surplus’ Nations
The Top 20 ‘Debtor’ Nations
Discussion Questions?
Summary
Questions?Privatization of the water supply
Good Idea?