ED 60.

02: Environmental Economics:

Class Notes: 17/1/06

 SOME BASIC ISSUES

 Ganesh P. Shivakoti
Global Environmental Challenges
1. Global warming
2. Ozone shield depletion
3. Acid rain
4. Nuclear waste disposal
5. Revolution dispersion
6. International terrorism
7. Disease eradication
8. Population growth
9. Tropical deforestation
10. Peace making
Consideration of these Challenges in
Terms of

1. Scientific consideration
2. Economic consideration
3. Political consideration
New Horizons in
Environmental Policy
1. World’s future is less pessimistic.
2. Global challenges that concern only the
present generation is easier to solve than
those concern the future generations.
3. There is no single blueprint for addressing
global challenges because of variation in
dimensions of conflict in terms of:
 number of nations;
 proportion of localized benefits;
 distribution of benefits; and
 extent of uncertainty.
4. Many global and regional environmental
challenges share common pollutants and other
features. Hence, remedy should be sought
jointly.
5. Mere existence of a problem does not
justify the institution of a supranational
linkage.
 The first course of action is to look into
interdependent behavior to confront
transnational behavior/issues.
 If incentive does not exist for such
action NGOs can be used and non-
payers excluded form the benefits of
collective action.
6. Nations act according to international treaties
concerning the environment only when it is on
their interest. These treaties do not reflect a
global consciousness.

7. There is larger response to rectifying a

problem that involved greater benefits to present
than future generations.

8. Some intergenerational trades can be

achieved if these generations are sufficiently
near in time and in risk sharing.
9. Whenever there is positive benefit a
supranational linkage is required. It is
effective when it is loose initially and
tightened as warranted over time.

10. The formation and operation of

supranational linkages are facilitated if
there are cooperative efforts among
nations.