The Environment and Development

The Environment and Development Chapter 10

Group members • ZAHEER U DIN QADIR • MUHAMMAD SUFIAN • BILAL NAZIR QADRI • ASAD • NADEEM ASHRAF • AYESHA AKHTAR

Economics and the Environment • Environmental issues affect, and are affected by, economic development • Poverty and ignorance may lead to non-sustainable use of environmental resources

Environment and Development: The Basic Issues • Sustainable development and environmental accounting

Environment and Development: The Basic Issues Sustainable net national product is: Where NNI* is sustainable national income GNI is Gross national income Dm is the depreciation of manufactured capital assets Dn is the depreciation of environmental capital

Environment and Development: The Basic Issues Alternatively, sustainable net national product is: Where NNI*, GNI, Dm, and Dn are as before R is expenditure needed to restore environmental capital A is expenditure required to avert destruction of environmental capital

Environment and Development: The Basic Issues • Sustainable development and environmental accounting • Population, resources, and the environment • Poverty and the environment • Growth versus the environment • Rural development and the environment

Environment and Development: The Basic Issues (cont’d) • Urban development and the environment • The global environment

The Scope of Environmental Degradation: A Brief Statistical Review • Environmental problems have consequences both for health and productivity

Table 10.1

Table 10.1 (cont’d)

Rural Development and the Environment: A Tale of Two Villages • Representative African village • Representative South American village

Traditional Economic Models of the Environment • Privately owned resources

Figure 10.1

Figure 10.2

Traditional Economic Models of the Environment • Privately owned resources • Common property resources

Figure 10.3

Traditional Economic Models of the Environment • Privately owned resources • Common property resources • Public goods and bads: regional environmental degradation and the free-rider problem • Limitations of the public goods framework

Figure 10.4

Urban Development and the Environment • The ecology of urban slums • Industrialization and urban air pollution

Figure 10.6

Urban Development and the Environment • The ecology of urban slums • Industrialization and urban air pollution • Problems of congestion and the availability of clean water and sanitation

The Need for Policy Reform • The recognition that action to reduce environmental hazards has been insufficient is now widespread • However, budgets are limited • Better pricing policies would improve matters • Inclusion of women in the design of environmental policy is important

The Global Environment: Rain Forest Destruction and Greenhouse Gases • Many scientists are alarmed by recent evidence regarding ozone depletion and global warming • Economists also are concerned with the costs of global climate change • The solutions seem to involve both LDCs and industrialized countries

Policy Options in Developing and Developed Countries • What LDCs can do • Proper resource pricing • Community involvement • Clearer property rights and resource ownership • Improved economic alternatives for the poor • Improved economic status of women • Industrial emissions abatement policies

Policy Options in Developing and Developed Countries (cont’d) • How developed countries can help LDCs • Trade policies • Debt relief and debt for nature swaps • Development assistance • What developed countries can do • Emissions controls • R&D • Import restrictions

Table 10.2

The Environment and Development

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