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Economics and Environmental Policy

Before you read the chapter, answer each question with information you know. Afteryou complete the chapter, re-answer the questions using information you learned.

How Can We Best Balance Our OwnInterests and Needs With the Health of the Environment?

(What I Learned) (What I Know) (2.1 How is sustain-ability affected byeconomics?2.2 How do envi-ronmental policiesprotect theenvironment?2.3 How cangovernments workwith one anotherand citizens to formsound environmentalpolicy?)

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2. aesthetic value: non-market value that we appreciate for the beauty or emotional appeal

3. cost-benefit analysis: a comparison of what is sacrificed or gained by a specific action

4. cultural value: non-market value that sustain or help define our culture

5. demand: the amount of a product people will buy at a given price if free to do so

6. ecolabeling: serves to tell consumers which brands use environmentally benign processes

7. ecological economics: a developing school of study that applies the principles of ecology and systems thinking to the description and analysis of economics

8. economics: the study of how resources are converted into goods and services and how these goods and services are distributed and used

9. educational value: non-market value that may teach us about ourselves and the world

10. environmental economics: a new trend in economics where there is recognition that suppliers of goods and services need to consider how to conserve resources and reduce harm to the environment

11. environmental impact statement (EIS): a report that must show the costs and benefits of major federal actions that could significantly affect the quality of the environment

12. environmental policy: consists of general plans and principles that address the interactions between humans and the environment

13. existence value: non-market value that we may never experience directly, but are of value just because they exist, such as animals in far off places

0. market failure: occurs when markets do not reflect the environments positive or negative impacts on the economy

1. non-market values: values not included in the price of a good or service (aesthetic, cultural, scientific)

2. option value: non-market value that we do not use now but might use later, such as timber in an uncut forest

3. policy: a formal set of general plans and principles for addressing problems and guiding decision making

4. scientific value: non-market value that may be subject of scientific research

5. supply: the amount of a product offered for sale at a given price

6. use value: non-market value that we use directly, such as a river for boating

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(Border 2012The pollution problem in the TijuanaRiver is just part of a larger environmentalsituation along the 3100-kilometer (2000-mile) border between Mexico and the UnitedStates. Located along this border are 15 pairsof U.S.-Mexico sister cities. The map belowshows the U.S.-Mexico border region andthese sister cities.Rapid population growth in the borderregions sister cities has placed stresseson the regions resources, causing manyenvironmental problems. These problemsinclude air and water pollution, overloadingof water and sewage treatment plants, andoveruse of natural resources. Furthermore,the health of the regions nearly 13 millionresidents is also at stake. The pollution iscausing respiratory ailments, water-borne)

(diseases, respiratory ailments, and otherhealth problems.The U.S. Environmental ProtectionAgency (EPA) and Mexicos Secretariatof Environment and Natural Resources(SEMARNAT), along with many otherorganizations, are working together on anenvironmental plan for the region calledBorder 2012. This binational effort takesinto account population, demographics,language, trade, and biological diversityof the various parts of the border. Border2012s six goals are to: reduce watercontamination; reduce air pollution; reduceland contamination; improve environmentalhealth; establish emergency preparednessand response; and to enforce environmentalstewardship.)

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Use the information in Border 2012 to answer the questions below.

1.Identify 3 of the 15 pairs of sister cities along the U.S.-Mexico border

2.Do you think the health of the environment in the border regionand the health of theresidentswill improve or worsen in the future? Explain your answer.

3.Why is it important that both nations work together to clean up the pollution?

4.Use the information in the article and the map to explain how twonations can work together to balance their own interests and needs with the health of theenvironment.

Find out more about Border 2012. In small groups, use Internet resources to explore the topicon the EPA and SEMARNAT Web sites and on other reputable sites. Brainstorm solutions tothe environmental problems in the region, and present your ideas to the class.

The 21st Century Skills used in this activity include Critical Thinking and Problem Solving,Creativity and Innovation, Communication and Collaboration, Media Literacy, andInformation Literacy.

Log on for more information and activities on the CentralCase, Cleaning the Tides of San Diego and Tijuana.

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2.1 Economicspp. 36-41

Key Concepts

Supply and demand and cost-benefit analysis are two economic concepts that greatlycontribute to decision making.

All economies depend on the environment for resources and for management of wastes,but these connections are often overlooked.

A new trend in economics is the recognition that suppliers of goods and services needto consider how to conserve resources and reduce harm to the environment.

What Is Economics?

Match each type of economy with the statement that best describes it.

1.centrally planned economy

2.free market economy

3.mixed economy

a.The government decides what is made, how it is made, and who gets what.

b.Both government and individuals play roles ineconomic decision making.

c.Individuals decide what is made, how it is made,and how much is made.

4. Is economics only about money? Explain your answer.

5.Compare and contrast goods and services.

6.Explain how supply and demand works.

7.On the surface, cost-benefit analysis seems straightforward. What can make this decision-making method both complicated and controversial?

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Economics and the Environment

8.Briefly define natural resources.

9.What kinds of services do ecological systems provide?

10.Fill in the diagram with short descriptions of economicassumptions that have harmed the environment.

(Economic AssumptionsThat Have Harmedthe Environment)

(Endless Resources) (Short-term Effects) (Internal Costsand Benefits) (Growth)

Economics and Sustainability

11.Complete the following paragraph with terms from the word bank.

(ecolabelingecological economicsenvironmental economicsmarket failure non-market value)

Many economists in argue that economies must be stable to besustainable. But economists in think growing economies canbecome sustainable if they address environmental problems. In particular, these economists aredeveloping ways to include the of ecosystem services in prices. They arealso finding ways to avoid by acknowledging the positive effects of theenvironment on economies and the negative effects of economic activities on the environmentand people. helps consumers push companies toward sustainability.

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12.How do companies benefit by offering sustainable products and services?

Organize Information

13.Complete the tables below to show how the quantity produced and the quantity purchasedchange in a typical market. On the lines below the tables, describe what might happen ifconsumers were willing to pay a high price for a new sustainable product, such as a veryenergy and water efficient yet expensive washing machine.

Supply

Price

Quantity Produced

Low

Low

Demand

Price

Quantity Purchased

Low

High

Answer the questions to test your knowledge of lesson concepts. You can check yourwork using the answers on the bottom of the page.

14.Which kind of economy do most nations have today? Explain your answer.

15.What are external costs, and how do they relate to market failure?

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2.3International Environmental Policy andApproaches Pages 53-55

Key Concepts

Steps of the environmental policy process include identifying a problem, finding thecause, proposing solutions, getting organized, gaining access to policymakers, andguiding the solution to law.

Reading Strategy

As you read the lesson, complete the main ideas and details chart.

Main Ideas

Details

The environmental policyprocess

The Environmental Policy Process

15.Fill in the flowchart with the steps in the environmental policyprocess. The first step is provided.

(1. Identify theproblem.) (6.) (2.) (5.) (3.) (4.)

16.Describe ways in which science can help identify environmental problems and their causes.

17.Explain a problem an environmental policy might face even after it becomes a law.

Answer the questions to test your knowledge of lesson concepts. You can check yourwork using the answers on the bottom of the page.

18.Governm