Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy...
-
Upload
regina-harrison -
Category
Documents
-
view
218 -
download
0
Transcript of Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy...
![Page 1: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/1.jpg)
Inequality and Environmental Protection
James K. BoyceDepartment of Economics & Political Economy Research Institute
University of Massachusetts, Amherst
New Economics Summer Institute, Boston College, June 2012
![Page 2: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/2.jpg)
Democracy
Oligarchy
Market State
![Page 3: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/3.jpg)
What’s the “right” level of environmental protection?
![Page 4: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/4.jpg)
BCA prescription: the “efficient” level of pollution
Level of Environmental Degradation
$MC
MB
Neoclassical “optimal” level
![Page 5: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/5.jpg)
BCA normative rule: maximize Net Present Value
Level of Environmental Degradation
$MC
MB
Neoclassical “optimal” level
NPV
![Page 6: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/6.jpg)
Interpersonal aggregation in BCA
NPV = net benefit = benefits minus costs summed over all individuals
NPV = bi i
where bi = net benefit to individual i
![Page 7: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/7.jpg)
![Page 8: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/8.jpg)
Let them eat pollution?
The measurement of the costs of health-impairing pollution depends on the forgone earnings from increased morbidity and mortality. From this point of view a given amount of health-impairing pollution should be done in the country with the lowest cost, which will be the country with the lowest wages. I think the economic logic of dumping a load of toxic waste in the lowest-wage country is impeccable and we should face up to that.
- Lawrence Summers, “Let them eat pollution,” The Economist, February 8, 1992.
![Page 9: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/9.jpg)
Valuing human health risks The role of purchasing power
Marginal benefits of reduction in poor countries
“Efficient” level in poor countries
![Page 10: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/10.jpg)
Beyond purchasing power: From normative prescription to
positive description
Decision power.
Agenda power.
Value power.
Event power.
![Page 11: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/11.jpg)
Event power
![Page 12: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/12.jpg)
Event power: another example
Siting of hazardous facilities in Louisiana’s “Cancer Alley” began before the Voting Rights Act of 1965.
![Page 13: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/13.jpg)
Changing power balances:the environmental justice movement
![Page 14: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/14.jpg)
Recall: BCA rule
max bi
i
where bi = net benefit to the ith individual.
If bi > 0, individual i is a winner;
if bi < 0, individual i is a loser.
![Page 15: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/15.jpg)
PWSDR
max πi bi
i where πi = power of the ith individual
![Page 16: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/16.jpg)
BCA
Level of Environmental Degradation
$MC to losers = |Σbi| where bi < 0
i
MB to winners = Σbj where bj > 0 j
Neoclassical “optimal” level
![Page 17: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/17.jpg)
PWSDR: (i) winners more powerful than losers
Level of Environmental Degradation
$MC to losers = |Σbi| where bi < 0
i
MB to winners = Σbj where bj > 0 j
Neoclassical optimum
Power weighted MC to losers = |Σπibi|
i
Power weighted MB to winners = Σπjbjj
Actual level
![Page 18: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/18.jpg)
PWSDR: (ii) losers more powerful than winners
Level of Environmental Degradation
$MC to losers = |Σbi| where bi < 0
i
MB to winners = Σbj where bj > 0 j
Neoclassical optimum
Power weighted MC to losers = |Σπibi|i
Power weighted MB to winners = Σπjbjj
Actual level
![Page 19: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/19.jpg)
Which is more widespread?(i) “too much” environmental degradation or (ii) “too little”?
Benefits (in the forms of consumer surplus and producer surplus) are correlated with wealth: the rich consume more and own more stock.
Even if costs were evenly distributed, net benefits (bi) are correlated with wealth.
Power (πi) is correlated with wealth, too. Net benefits and power tend to be positively correlated.
Cases where the winners are more powerful than the losers are more widespread.
![Page 20: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/20.jpg)
PWSDR two hypotheses
1. Direction: Environmental costs will be imposed disproportionately on people with less power.
2. Magnitude: Greater power inequalities will lead to higher levels of environmental degradation.
![Page 21: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/21.jpg)
Valuing human health risks The role of political power (πi)
Power-weighted marginal benefits of reduction (poor countries)
Actual level in poor countries
![Page 22: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/22.jpg)
Valuing human health risks Purchasing power + political power combined
Marginal benefits of reduction in poor countries
Actual level in poor countries
Power-weighted MB of reduction (poor countries)
![Page 23: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/23.jpg)
PWSDR two hypotheses
1. Direction: Environmental costs will be imposed disproportionately on people with less power.
2. Magnitude: Greater power inequalities will lead to higher levels of environmental degradation.
![Page 24: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/24.jpg)
![Page 25: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/25.jpg)
![Page 26: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/26.jpg)
Voter Participation
Tax Fairness
Medicaid Access
Educational Attainment
POWER DISTRIBUTION
Measuring interstate variations in power distribution
![Page 27: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/27.jpg)
Interstate variations in the distribution of power
Rank State Score
1 Minnesota 2.32
2 Maine 1.65
49 Alabama -1.61
50 Mississippi -1.74
Source: Boyce, Klemer, Templet & Willis, “Power Distribution, the Environment, and Public Health,” Ecological Economics, 1998.
Environmental policy rank
7
5
49
46
![Page 28: Inequality and Environmental Protection James K. Boyce Department of Economics & Political Economy Research Institute University of Massachusetts, Amherst.](https://reader036.fdocuments.in/reader036/viewer/2022081514/56649e455503460f94b39b6b/html5/thumbnails/28.jpg)
The new environmentalism:Beyond sacred groves and sacrifice zones
For more, see The New Environmental Activists. Online at: http://www.peri.umass.edu/fileadmin/pdf/New_Environmental_activists.pdf.