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Sustainable Resource Management Strategies and Environmental Impacts Analysis

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dian
18 diapositives · 312 Views · Jul 28, 2014

Explore why non-renewable resources like oil won't run out and the factors affecting mineral prices. Includes profiles on Butte, Montana, recycling strategies, and the transition to renewable substitutes. Discuss energy laws and efficient resource allocation.

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  1. Upcoming in Class • Quiz #3 Oct. 23rd • Writing Assignment Due Oct. 23rd • by 5pm • Homework #7 due Oct. 30th • Exam #3 Wed. Oct 30th

  2. HW 6 • Explain why we will likely never “run out” of a non-renewable resource such as oil. Does this also imply that we always be able to extract all the oil we need? Explain.

  3. HW6 • Give three reasons why most minerals have not experienced an increasing price, as Hotelling’s rule and exhaustion would predict.

  4. Hypothetical Nonrenewableresource Use Profile

  5. Butte, Montana

  6. Butte, Montana

  7. Table 11.2: Potential Environmental Impacts of Mining Source: Young, 1992.

  8. Resource Consumption Profile with Recycling.

  9. Figure 11.6: Impact of Recycling on Virgin Resource Extraction Path Resource Supply Stage III Stage IV Total Supply Extraction Path without Recycling Supply from Recycled Materials Supply from Virgin Resource Time

  10. Policies to Promote Recycling • Altering current policies that encourage rapid resource extraction • Impose taxes on the use of primary resources • Municipal programs and institutions to promote recycling • Consumer incentives such as deposit/return systems or pay-by-the-bag

  11. Resource Price Profilewith Environmental Costs

  12. Figure 11.7: Marginal Costs of Recycling Marginal Costs MCr MSCv MPCv 0% 40% 60% 100% Proportion of Supply Obtained from Recycled Materials

  13. Energy The second law of thermodynamics states that all physical process lead to a decrease in available energy, that is, an increase in entropy. http://www.youtube.com/watch?v=5KIhDVLbMeY

  14. Transition to a Non-Renewable Substitute • The transition for two non-renewable with different marginal costs will be a smooth one. • The rate of increase of total marginal cost slows down after the time of transition because the marginal user cost represents a smaller portion of total marginal cost for the second, higher cost resource.

  15. The Transition from One Constant-Cost Non-Renewable Resource to Another

  16. Transition to a Renewable Substitute • An efficient allocation thus implies a smooth transition to exhaustion and/or to a renewable substitute. • The transition point to the renewable substitute is called the switch point. • At the switch point the total marginal cost of the non-renewable resource equals the marginal cost of the substitute.

  17. (a) Constant Marginal Extraction Cost with Substitute Resource: Quantity Profile. (b) Constant Marginal Extraction Cost with Substitute Resource: Marginal Cost Profile

  18. Upcoming in Class • Quiz #3 Oct. 23rd • Writing Assignment Due Oct. 23rd • by 5pm • Homework #7 due Oct. 30th • Exam #3 Wed. Oct 30th