Professional Documents
Culture Documents
1 Environment & Sustainability
1 Environment & Sustainability
Chapter 1
The Environment and Sustainability
Basic Vocabulary
● Sustainability = capacity of the earth’s natural systems to survive or adapt to changing
environmental conditions
● Biomimicry = scientific effort to mimic the ways that nature has sustained life on earth for so
long
● Ecology = branch of biology, how living things interact with the living and nonliving parts of the
environment
● Species = group of organisms that have a unique set of characteristics that set it apart from other
groups
● Ecosystem = biological community of organisms within an area of land/water that interact with
each other
● Environmentalism = social movement dedicated to protecting earth’s life-support system
Prices of Goods and Services Rarely Include Their Harmful Environmental and Health Costs
● Companies don’t pay for the harmful environmental and health costs of producing their goods
○ Example: timber companies pay to clear forests but not for the environmental degradation
and loss of wildlife habitat
○ Goal of a company is to maximize profits, not add costs to prices
○ Prevents consumers and decision makers from evaluating harmful environmental effects
● Governments sometimes give subsidies to companies
○ Can encourage depletion and degradation of natural capital
● 2 ways to implement full-cost pricing:
○ 1. Shift from environmentally harmful government subsidies to environmentally
beneficial subsidies
■ Example: give subsidies that reward sustainable forest management, replanting of
degraded lands, sustainable agriculture, and use of wind and solar power
○ 2. Increase taxes on pollution and wastes + reduce taxes on income and wealth