evs final ppt
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Presented by -
Ralena Moras -31
Ajith Menezes-29Vinita DSouza -26
James Johnson-27
Julaius Mathana -28
Ashwin Milton-30
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Introduction to Environmental
Economics
Environmental economics is the subset of economics
that is concerned with the efficient allocation of
environmental resources.
Environmental economics takes into consideration
issues such as the conservation of natural resources,pollution control, waste management and efficient
creation of emission standards
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Economic view
The key objective of
environmental economics is
to identify those particular
tools or policy alternatives
that will move the market
toward the most efficient
allocation of natural
resources.
When the market fails toallocate the resources
efficiently, market failure
can occur.
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The Law of Diminishing Returns
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The Law of Diminishing Returns The theory was effectively applied by Garrett Hardin in his
1968 article on the tragedy of the commons in which he
looked at many common property resources, such as air,
water, and forests, and described their use as being subject to
diminishing returns.
The challenge whether it be local, regional, national, or
global is how best to manage the problem of declining
resource-to-people ratios that could lead to a reducedstandard of living
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Carrying Capacity One population issue is that ofcarrying capacity the
number of individuals an ecosystem can support without
having any negative effects.
If carrying capacity is exceeded, living organisms must adapt
to new levels of consumption or find alternative resources.
Carrying capacity often serves as the basis for sustainabledevelopment policies that attempt to balance the needs of
today against the resources that will be needed in the future.
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Carrying Capacity4 Cows
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Carrying Capacity While the exact value of the human carrying capacity is
uncertain and continues to be under debate, there has been
evidence of the strain that both overpopulation and over-
consumption has placed on some societies and the
environment.
In the meantime, actions to reduce the strain and ensure
natural resource recovery for the future will depend on an
increase of sustainable development policies worldwide.
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Sustainable Development Development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs
Economic growth, environmental protection, and
social equity, and suggested that all three can beachieved by gradually changing the ways in which
we develop and use technologies
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Sustainable Development
Environment
Society
Economy
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Sustainable Development
Current Reality Time Future
Unsustainable
Sustainability
SustainableEconomy
Environment
Society
Economy
Society
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How Markets WorkSupply
and Demand The market is an economic activity which is organized between buyers and
sellers through their behavior and interaction with one another.
The interaction of buyers and sellers in the market helps to determine the
market price, thereby allocating scarce goods and services efficiently.
The inverse relationship between price and quantity demanded is so
universal that it is called the law of demand. The higher the price, the
lower the quantity demanded - and the lower the price, higher quantity is
demanded
The law of supplyis just the opposite: the higher the price, the higher the
quantity supplied - and the lower the price, less quantity is supplied
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Variables That Influence
Price
Income
Prices of related goods
Tastes
Expectations
Number of Buyers
Buyers(Demand)
Price
Input prices
Technology
Expectations
Number of sellers
Sellers(Supplier)
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Externalities
Externalities are unintentional side effects of anactivity affecting people other than thosedirectly involved in the activity.
1. Negative externality
2. Positive externality - "free riders
Traditionally both are considered to be forms ofmarket failures i.e. where a free market doesnot allocate its resources efficiently.
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Arthur Pigou, a British economist, argued that theexistence of externalities justified governmentintervention through legislation or regulation.
Pigovian taxes and subsidies
Many economists believe that Pigovian taxes are better
than government imposed regulations
Taxes leave the decision of how to deal with pollution toindividual sources by assessing a fee or "tax" on theamount of pollution that is generated.
Cap and Trade - bought or sold, or banked for future
Individual Transferable Quotas (ITQs)eg Fisheries
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Ecosystem valuation
Valuation can be a useful tool that aids in evaluating
different options that a natural resource manager might face.
It is the process by which policymakers assign a value,
monetary or otherwise to environmental resources or to
the outputs and/or services provided by those resources. E.g.
Mangroves
Environmental resources are particularly hard to quantify
due to their intangible benefits and multiple value options.
E.g. Wood
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There are typically 2 ways to assign value to
environmental resources and servicesuse andnon-use
Market or Opportunity cost pricing
Hedonic pricing
Contingent valuation
Cost-benefit analysis - requires the quantificationof possible impacts of a proposed project. Theimpacts could be physical or monetary.
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Cost-benefit analysis
It involves a comparison of the costs of an action compared with
considerations of the benefits of that action. However, for publicpolicy it is formalized and quantitative.
Base situation or what would happen if no changes were made
Identify the relevant time period by which the costs and benefits
be realized.
Valuation and discounting only costs of true externalities aretaken into account & not secondary effects
After all benefits and costs have been given a common unit of
measurement, options can be evaluated.
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Environmental Impact Analysis
An environmental impact analysis is typically conducted to
assess the potential impact a proposed development project
will have on the natural and social environment
This may include an assessment of both the short- and long-term effects on the physical environment, such as air, water
and/or noise pollution; as well as effects on local services, living
and health standards, and aesthetic
Environmental impact analyses are often challenging because
they call for making projections with incomplete information.
Methods of assessing the impacts typically include both
objective and subjective information making it difficult to
quantify
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Case study
Social Forestry in Karnataka:An
impact analysis-D M Chandrashekhar
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Background
Forest based industries leading to destruction
of forests
Karnataka government taken reforestation
programme with single-stand eucalyptus
plantations
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Area of forests shrunk..Resettling the refugees and displaced
Encroachment of forest lands for cultivation
Submersion of forests due to irrigation projects
Clearing forest for electric transmission lines
To meet demand by urban people for timber
and fuel
Forest fire
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The main culprit: Eucalyptus
plantations
It is water intensive
It is nutrient intensive
It is toxic
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Problem
Felling of 40,000 hectares of land in Sirsi-Yellapur region under natural forest cover
Raised single stand hybrid eucalyptus
plantations without trialsResult Total destruction by fungus
cortecium salmonicolor.
Reason for destruction Eucalyptus notsuited for high rainfall and low altitude
conditions
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Basis for social forestry
Serving the rural community
No plantations of eucalyptus mentioned
The forest department launched a massiveprogramme to propagate monoculture on
farmlands to meet needs of industry
Forest department nurseries started
Has it helped?????
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Review of social forestry programme
in Kolar and Bangalore districts
KOLAR-(1975-1983)-611.31 lakhs of eucalyptus
seedlings distributed
BANGALORE-247.63 lakhs
63.3% raised on agriculture land in kolar and
49.6% in Bangalore
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Land reforms and eucalyptus
plantations
Abolition of tenancy act
The act posed threat to landowners
Switching from food crop to eucalyptus plantations
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Outcomes
Reduction in grazing resources
Permanent destruction of lands
Land unfit for agriculture-foodcrops
Lands deemed as C & D type
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Government move Approved joint sector plantations
Approved plantations of eucalyptus on 30000hectares of C and D type
Wasteland development programme-plantations of 5
mn hectares annually
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Opposition
By peasant community-uprooted lakhs of
eucalyptus seedlings at Tumkur district
Plantations not allowed in Chikmaglur district
Formation of Mannu Rakshana Koota(Save
soil forum)
Protest again government schemes
disregarding rural people
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Activities
Farmers ready to organize plantings for 250 million
saplings of multiple use species
The State level federation of voluntary organizations
for rural development in Karnataka(FERVORD-K)requested government on change in forestry policy
Karnataka Forest plantations corporation sponsored
a 10 day visit to Gujarat
Environmental education programmes undertaken
Village level organizations initiated afforestation
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