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007 Bioeconomics
007 Bioeconomics
007 Bioeconomics
Contents
Background &
Definition
Bioeconomics
vs. Conventional
Economics
Scope
Processes in
Bioeconomy
Trend in
Biobased
Economy
Green Economy
Background
Biobased economy emerged as result of four main phenomena
Internationalization &
globalization
Debut of biotechnology in
global market
Advances in biology
(especially molecular
biology) signal the prospect
of a new generation of
products and services
Environmental catastrophe
(global warming, climate
change, etc.)
Definition
Economy
Bioeconomy
OBJECTS OF BIOECONOMY
LANDCSAPE/ECOSYSTEM
WILDLIFE BIORESOURCES
DOMESTICATED BIORESOURCES
BIOPRODUCTS
ECOSYSTEM
Recycle/Recovery
ECONOMY
Bioresources
& EnergyInput
Firms
PRODUCTION
Supply
DISTRIBUTION
Demand
Solar Energy
CONSUMPTION Output
Waste
Consumer
(Energy &
Materials)
Distribution
Transporting bioresources or
bioproducts from manufactures to
consumers.
Consumption
Stock &
Flow
Supply
Equilibrium price
Equilibrium
$2.00
Demand
Equilibrium quantity
10
11
Ecological Economics
Valuation on Bioresources
Green Production & Consumption
Ecological Footprint
SERVICES
GOODS
SERVICES
Common Resources
1. Air! No one owns the air-avail to all
2. Water in oceans & rivers is avail to all.
3. Fish of the sea avail to all.
Note: First codified by Romans in 535 AD.
+
+
Externalities
When one persons
actions imposes a cost
or benefit on the wellbeing of a bystander.
Externalities cause
markets to allocate
resources inefficiently
and usually result in
market failure.
Positive externality of research
Environmental Externalities
Environmental
externalities mostly
happened caused by the
negative externalities in
production.
Because of the
externality, the cost to
society is larger than the
cost to producers.
The market overproduces
and charges a price that
is too low.
MSC
PR
IC
E
S = MPC to Firm
D = MB to Society
QUANTITY
Valuation on Bioresources
Market failures by externalities & tragedy of the commons
are examples on how important is to value the
bioresources & environment as whole.
Mindset in Valuation
Information &
Incentives
Decision-Making
Human actions
Value of ecosystem
services
Economic valuation
methods
Ecosystems
Ecosystem services
Ecological production
function
Valuation Methods
Preferences
Revealed Preferences
Market-Based
Factor of
Production
Producer/
Consumer
Surplus
Stated Preferences
Surrogate Markets
Defensive
Expenditures
Hedonic
Pricing
Non-Market Based
Travel
Cost
Contingent
Valuation
Choices
Experiment
Ecological Footprint
Area of land required to provide all needs and to
absorb all the waste generated from activities of a
population (Wackernagel and Rees, 1995).
Components
1. Growing Crops
2. Grazing Animals
3. Harvesting
Timber
4. Catching Fish
5. Accommodating
Infrastructure
6. Absorbing Carbon
Dioxide Emissions
National Footprints
Mid-test!!!
The mid-test will be held at Friday, March 20th, 2015
Test Rooms:
Engineering Class in 9020 (odd student number) and 9021
(even student number)
Science Class in 9232
Materials
Introduction till Biomanagement
Documentary Film: 11th Hour