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01MAWGD Resources and Environmental Economics

Prof. Blengini, Giovanni Andrea

Prof. Shields, Deborah J.

A.A.2009/10 Fall Term

KEY TERMS and CONCEPTS

General you need these basic concepts to be able to answer the Mineral,

Environmental, Energy and Sustainable Development economic questions.

What is economics

Scarcity (resources vs needs)

Economic efficiency

Technological efficiency

Production possibilities frontier

Economic system definition

Who are the actors in economies

Value chain, linear vs. circular economy approaches

Value added

Gross domestic product, what is it in general, whats in and whats not in (no calculations)

real vs. nominal value

CPI, PPI definitions

Income and product flows, basic concepts and simplified drawing

Diminishing marginal value

Law of demand

Demand curve

Willingness to pay (WTP)

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Total and marginal cost

Principle of rising marginal cost

Supply curve

Shifts vs movements along curves

Elastic and inelastic curves

Total and marginal revenue

Consumer and producer surplus

Market failures

Mineral Economics

Material flow cycle

Stages of mined raw materials to finish products

Main economic characteristics of mineral raw materials

Intensity of use

Stocks vs. flows

Reserves vs. resources

Ore and deposits

Fixed stock paradigm

Static reserve index

Opportunity cost paradigm

Characteristics of mineral markets

Mining/mineral rent

What are the main mineral policy categories

Environmental Economics

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Common pool resources

Public goods

Market failure

Use versus non-use value

Positive and negative externalities

Internalizing externalities

Social costs

Monetary valuation

Pigouvian taxes

Contingent valuation

Optimal pollution levels (according to economists)

Polluter pays principle

Precautionary principle

Eco-efficiency

Decoupling

Command and control

Cost benefit analysis and ratio

Present value and net present value calculations

Sustainable Development (SD)

Classic Brundtland definition of SD

Three circles of SD and basic understanding of what each covers

Inter- and intra-generational equity

Types of capital

Weak versus strong sustainability

Capital-based definition of SD

How neoclassical economics and ecological economics differ

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Capital substitution

Capital definition of sustainability for energy and minerals

What is sustainability policy and sustainability-based resource policy

Social license to operate

Corporate social responsibility

SD: goals, principles, criteria and indicators

What is the role of engineers in achieving sustainability