carcinogens 41
cost-benefit analysis 49
demand 43
external costs 53
negligible risk 42
pollution costs 53 		pollution-prevention costs 53
probability 39
resources 43
risk assessment 39
risk management 41
subsidy 46 		supply 43
supply/demand curve 44
sustainable development 50

On-line Flashcards

Is your shrimp dinner causing turtle deaths? Is the use of Turtle Exclusion Devices (TEDs) an example of unfair trade restrictions? Although TEDs are used frequently in shrimp trawling and seem to be a technological solution to the problem of drowning sea turtles, all is not solved in the business. Some trawlers are not using the devices, and internationally there are complaints about the use of TEDs. Gulf Shrimp Trawler Fined for Disabling Turtle Exclusion Device tells the story of a Louisiana shrimp trawler who is obviously not supportive of TEDs. You can also see how the TED works in the accompanying illustration and explanation.
      The World Trade Organization overturned U.S. legislation to ban the import of shrimp from countries that refuse to use TEDs. For more information on how the WTO affects U.S. environmental laws, check out "Environmental Concerns in the Battle For Seattle," at World Trade Organization Talks.
      Additional information regarding the WTO, economics, and the environment is found in China Slated to Join the WTO.
 		      More news on the international scene includes Sweden who leads the way in changing their approach to economic policy by acknowledging the real costs of environmental degradation. Read Swedish Parliament Plans Budget for Environmental Indicators to see how this country is attempting to reduce external costs.
      Are the conveniences of using plastics and pesticides enough to outweigh the possibility of declining sperm counts and increased breast cancer? Is this just a scare tactic? Investigate these questions with Endocrine Disrupters on the Gulf Coast, a case study that discusses the costs and benefits of using pesticides and plastic.
      The high demand for plastics and pesticides can lead to potential problems, but there are also problems associated with the high demand for natural products. Is the quest for natural products a modern-day "gold rush" or a Tragedy of the Commons? Check out Matsutake Mushroom Mania for the drama that unfolds when there is high demand for a natural product.
Review Questions
  1. How is risk assessment used in environmental decision making?
  2. What is incorporated in a cost-benefit analysis? Develop a cost-benefit analysis for a local issue.
  3. What are some of the concerns about the use of cost-benefit analysis in environmental decision making?
  4. What concerns are associated with sustainable development?

  1. What are some examples of environmental external costs?
  2. Define what is meant by pollution-prevention costs.
  3. Define the problem in common property resource ownership. Provide some examples.
  4. Describe the concept of debt-for-nature.
Critical Thinking Questions
  1. If you were a regulatory official, what kind of information would you require in order to make a decision about whether a certain chemical was "safe" or not? What level of risk would you deem acceptable for society? For yourself and your family?
  2. Why do you suppose some carcinogenic agents, like those in cigarettes, are so difficult to regulate?
  3. Imagine you were assessing the risk of a new chemical plant being built along the Mississippi River in Louisiana. Identify some of the risks that you would want to assess. What kinds of data would you need to assess whether the risk was acceptable, or not? Do you think that some risks are harder to quantify than others? Why?
  4. Granting polluting industries or countries the right to buy and sell emissions permits is a controversial idea. Some argue that the market is the best way to limit pollution. Others argue that trade in permits allows polluting industries to continue to pollute and concentrates that pollution. What do you think?
  5. Imagine you are an independent economist who is conducting a cost-benefit analysis of a hydroelectric project. What might be the costs of this project? The benefits? How would you quantify the costs of the project? The benefits? What kinds of costs and benefits might be hard to quantify or might be too tangential to the project to figure into the official estimates?
  1. Do you think environmentalists should stretch traditional cost-benefit analysis to include how development impacts the environment or shouldn't they? What are the benefits to this? The risks?
  2. Looking at your own life, what kinds of risks do you take? What kinds would you be unwilling to take? What criteria do you use to make a decision about acceptable and unacceptable risk?
  3. Is current worldwide growth and development sustainable? If there were less growth, what would be the effect on developing countries? How could we achieve a just distribution of resources and still limit growth?
  4. Should our policies reflect an interest in preserving resources for future generations? If so, what level of resources should be preserved? What would you be willing to do without in order to save for the future?