Vgcbncg Essay

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Chapters’ Lecture Notes Chapter 1: Introduction | This chapter is an introduction to the economic side of environment and natural resources problems. Future societies will be confronted by both resource scarcity and accumulating pollutants. This section provides a flavor of what is to come by illustrating the challenges posed by one pollution problem (climate change) and one resource scarcity problem (water accessibility). As the scale of economic activity has proceeded steadily upward, the scope of environmental problems triggered by that activity has transcended geographic and generational boundaries. Economic analysis provides an incredibly useful set of tools examining problem of satisfying human wants and needs in light of limited environmental and natural resources. Chapter 2: The Economic Approach: Property Rights, Externalities, and Environmental Problems | Chapter 2 reviews many of the basic economic concepts that will be used in later chapters. The chapter starts with a discussion of the interactions between the environment and the economy, followed by an explanation of the difference between positive and normative economics. Static efficiency is defined, and consumer surplus and producer surplus are reviewed. The characteristics of an efficient property rights structure are defined and deemed to be necessary for markets to efficiently allocate resources. The remainder of the chapter discusses four cases of market failure: externalities, common property resources, public goods and imperfect market structures. The chapter ends with a discussion of possible remedies to a market failure, including the Coase Theorem and private negotiation, legal remedies, and government regulation. Chapter 3: Evaluating Trade-Offs: Benefit–Cost Analysis and Other Decision-Making Metrics | Chapter 3 presents three decision-making metrics that can be used

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