IB Environmental systems and societies Topic Hl.ba Environmental Economics and Its Key Concepts Revision Notes (HL)

IB Environmental systems and societies Topic Hl.ba Environmental Economics and Its Key Concepts Revision Notes (HL) | RevisionDojo

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Economics: Allocating Scarce Resources

Definition

Economics

Economics is the study of how humans produce, distribute, and consume goods and services, both at an individual and collective level.

Economics studies how societies allocate scarce resources, deciding what to produce, how to produce it, and for whom.
Supply (what producers offer) and demand (what consumers want) meet in a market to set prices.
Environmental problems arise when this pricing leaves out the cost of environmental damage.

Environmental vs Ecological Economics: Two Rival Schools

Both study the economy and the environment, but they start from opposite assumptions.

Environmental economics (technocentric)
1. Trusts markets and technology to fix environmental problems from within the current system.
2. Favours market tools such as carbon trading, eco-taxes, and green subsidies.
Ecological economics (ecocentric)
1. Treats the economy as bound by ecological limits, so growth cannot continue forever.
2. Calls for a deeper shift toward sustainable resource use rather than a technical fix.

Note

The detailed contrast between these two schools is developed in the Ecological economics article.

Market Failure: Why Free Markets Harm the Environment

Market failure happens when a free market allocates resources inefficiently, imposing costs on society or the environment.

Negative externalities
1. Costs fall on third parties who are not compensated, such as a factory polluting a river.
2. Society bears the cost while the polluter keeps the profit.

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

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Economics: Allocating Scarce Resources

Definition

Economics

Economics is the study of how humans produce, distribute, and consume goods and services, both at an individual and collective level.

Economics studies how societies allocate scarce resources, deciding what to produce, how to produce it, and for whom.
Supply (what producers offer) and demand (what consumers want) meet in a market to set prices.
Environmental problems arise when this pricing leaves out the cost of environmental damage.

Environmental vs Ecological Economics: Two Rival Schools

Both study the economy and the environment, but they start from opposite assumptions.

Environmental economics (technocentric)
1. Trusts markets and technology to fix environmental problems from within the current system.
2. Favours market tools such as carbon trading, eco-taxes, and green subsidies.
Ecological economics (ecocentric)
1. Treats the economy as bound by ecological limits, so growth cannot continue forever.
2. Calls for a deeper shift toward sustainable resource use rather than a technical fix.

Note

The detailed contrast between these two schools is developed in the Ecological economics article.

Market Failure: Why Free Markets Harm the Environment

Market failure happens when a free market allocates resources inefficiently, imposing costs on society or the environment.

Negative externalities
1. Costs fall on third parties who are not compensated, such as a factory polluting a river.
2. Society bears the cost while the polluter keeps the profit.

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

Topic 1: Foundation 3 subtopics

Topic 2: Ecology5 subtopics

Topic 3: Conservation and biodiversity3 subtopics

Topic 4: Water4 subtopics

Topic 5: Land2 subtopics

Topic 6: Atmosphere and climate change4 subtopics

Topic 7: Natural resources3 subtopics

Topic 8: Human populations and urban systems3 subtopics

HL lenses 3 subtopics

IB Environmental systems and societies Hl.ba Environmental Economics and Its Key Concepts Notes

Topic 1: Foundation 3 subtopics

Topic 2: Ecology5 subtopics

Topic 3: Conservation and biodiversity3 subtopics

Topic 4: Water4 subtopics

Topic 5: Land2 subtopics

Topic 6: Atmosphere and climate change4 subtopics

Topic 7: Natural resources3 subtopics

Topic 8: Human populations and urban systems3 subtopics

HL lenses 3 subtopics

Economics: Allocating Scarce Resources

Environmental vs Ecological Economics: Two Rival Schools

Market Failure: Why Free Markets Harm the Environment

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Economics: Allocating Scarce Resources

Environmental vs Ecological Economics: Two Rival Schools

Market Failure: Why Free Markets Harm the Environment

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account