IB Environmental systems and societies Hl.b Environmental Economics Key Definitions

When an economy grows while its environmental impact, such as resource use or CO₂ emissions, falls in absolute terms at the same time.

Biocapacity is the capacity of a biologically productive area to continuously provide renewable resources and assimilate the waste generated by human activities.

The circular economy is an economic model that decouples economic growth from resource consumption by keeping materials, products, and resources in use for as long as possible.

A planned reduction in production and consumption, especially in high-income countries, that lowers a society's demand on the environment while protecting human well-being.

The Doughnut Economics model, proposed by economist Kate Raworth, offers a framework to address these challenges by balancing human needs with planetary boundaries.

Eco-economic decoupling refers to the process of separating economic growth from environmental degradation.

Ecological economics is an interdisciplinary field that studies the relationship between economic systems and the environment, recognizing that the economy operates within the Earth's ecological limits.

An ecological footprint is the measure of the amount of land and water area required to provide all resources a population consumes and absorb waste and emissions (e.g., CO₂ absorption by forests)

Economic growth refers to the increase in the total market value of goods and services produced in a country over time.

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

Environmental accounting (also called green accounting) is the process of assigning economic value to natural resources, environmental degradation, and ecosystem services.

Gross Domestic Product (GDP) is a common indicator of economic development that measures the monetary value of all final goods and services produced within a country over a specific period.

Greenwashing (or "green sheen") refers to misleading marketing strategies used by companies to appear more environmentally friendly than they actually are.

Gross domestic product (GDP) is a monetary measure of all final goods and services produced within a country in a given time period (usually a year).

Intrinsic value refers to the worth of something independent of its usefulness to humans.

Natural capital refers to the total stock of natural resources (both renewable and non-renewable) that provide ecosystem services benefiting humans and the environment.

The value a natural resource holds independent of any direct or indirect use of it, including its intrinsic value, its potential for future use (option value), and the value of leaving it intact for future generations (bequest value).

Overshoot is when a population's demand on its environment exceeds the carrying capacity. It can only be temporary, and the degradation it causes lowers the carrying capacity further.

The idea that if an action might cause serious harm to the environment, precautionary measures should be taken even when scientific certainty about the harm is lacking.

When environmental impact still rises as an economy grows, but more slowly than the growth itself, so impact per unit of output falls.

Steady-state equilibrium is the condition in which inputs equal outputs over time, even though water is continuously moving between stores.

The tragedy of the commons describes a situation where individuals or nations overuse a shared resource for personal gain, causing long-term harm to the whole group.