环境与自然资源经济学PPT2 Tietenberg_8e_ppt22_final.pptVIP

Chapter 22 Development, Poverty, and the Environment Objectives Define economic growth. Discuss economic development. Examine the growth-development relationship. Present the standard/traditional measures of growth and wealth such as Gross Domestic Product. Discuss pros and cons of using the standard measures. Present and discuss alternative measures. Discuss poverty. Introduction Chapter 22 considers the global economic system. Economic growth is defined and the relationship between growth and development in the industrialized countries is explored. Poverty has emerged as one significant cause of environmental problems. Differing views on development are explored. The Growth Process Nature of the Process Growth can occur through increases in inputs. Inputs can grow via economies of scale. Inputs can also grow due to the law of diminishing returns. If an increase in all inputs leads to the same percentage increase in output, then the process exhibits constant returns to scale. Growth can also occur through increases in the productivity of inputs due to technological progress. Potential Sources of Reduced Growth Reduced input flows Labor is an input. Energy costs are rising. Reduced use of more expensive inputs can slow growth. Limitations on capital’s substitutability for other factors or on the productivity of investment can hinder growth. Capital and energy as complements may be replaced with a capital-energy substitution. Reductions in the future productivity of capital can also slow growth. New-source bias also diminishes the incentive to invest in new capital. Limits on technological progress. Limits on technological progress can be a result of institutional limits. Limits on technological progress can also occur with decreasing commitments to research sectors. The Natural Resource Curse Resource-abundant countries are less likely to experience rapid development (Example 22.1) Example 22.1 Example 22.1 Environmental Policy Environmental policies imp