Ch 25: Global Environmental Economics

About This Chapter

Watch environmental economics video lessons and learn about Gross Domestic Product, environmental full cost accounting, the World Bank and more. These easy-to-follow lessons are just a portion of our online study guide and video collection.

Global Environmental Economics - Chapter Summary and Learning Objectives

Lessons in this chapter examine the challenges inherent in meeting society's needs while attempting to protect an increasingly limited supply of natural resources. Watch the videos to discover the decision-making processes and economic concepts used to establish a balance between these two objectives, and explore some of the international approaches designed to promote sustainable development and preserve natural capital. By the end of this chapter, you should be familiar with the following:

  • Types of natural capital
  • Limitations of national income accounts
  • Relationships between marginal costs and marginal benefits
  • Components of environmental treaties

Video Objective
Environmental Full Cost Accounting: Definition & Example Explores the benefits and challenges of a decision-making tool that takes into account a project's economic, social and environmental costs as well as its externalities, or indirect costs to uninvolved parties
Economics, Natural Capital & the Environment Defines the term natural capital and explains the benefits of these air, land and water resources in terms of their economic value to society
National Income Accounts and The Environment: Definitions & Limitations Explains factors taken into consideration when calculating one of the most popular measurements of national income - Gross Domestic Product - and explores this metric's inability to account for the environmental and social impacts of actions taken to increase GDP
The Economics of Pollution: Marginal Cost of Pollution & Optimum Amount of Pollution Outlines factors for determining when the social benefits of making a product are equal to the resulting pollution
The World Bank Describes the role of the World Bank in ensuring the sustainable use and conservation of water and other resources in developing nations
Tragedy of the Commons Introduces the concept used to explain the ongoing use of resources despite individuals' awareness that their depletion negatively impacts the common good
Global Environmental Laws and Treaties Examines the environmental laws protecting such resources as fresh drinking water and clean air, as well as the treaties establishing various nations' commitment to address environmental problems

7 Lessons in Chapter 25: Global Environmental Economics
Test your knowledge with a 30-question chapter practice test
Environmental Full Cost Accounting: Definition & Example

1. Environmental Full Cost Accounting: Definition & Example

Environmental full cost accounting recognizes the economic, environmental, health and social costs of an activity. In this lesson, learn why the use of environmental full cost accounting is important during the decision-making process.

Economics, Natural Capital & the Environment

2. Economics, Natural Capital & the Environment

Natural capital is the resources and services derived from nature that are of value to people. Learn why protecting natural capital is important for sustainable growth and economic development.

National Income Accounts and The Environment: Definitions & Limitations

3. National Income Accounts and The Environment: Definitions & Limitations

National income accounts are a measurement of economic activity within a nation. However, they have limitations. Learn how national income accounts fail to take into consideration important factors such as environmental degradation.

The Economics of Pollution: Marginal Cost of Pollution & Optimum Amount of Pollution

4. The Economics of Pollution: Marginal Cost of Pollution & Optimum Amount of Pollution

There is an optimum amount of pollution where marginal benefit equals the marginal cost of pollution. Learn how marginal cost, marginal abatement cost and marginal benefit are considered when determining the optimum amount of pollution in this lesson.

The World Bank: History & Global Economic Development Goals

5. The World Bank: History & Global Economic Development Goals

Unlike any bank you've ever been to, the World Bank does more than just borrow and loan out money. This UN agency provides development assistance, with eight goals focused on improving health and reducing poverty and inequalities around the world.

Tragedy of the Commons Theory: Definition & Examples

6. Tragedy of the Commons Theory: Definition & Examples

People all over the world need to share its common resources. However, this is not an easy thing to do as individuals may benefit more from serving their own self-interests, even if it is harmful to the overall community.

Global Environmental Law & International Treaties

7. Global Environmental Law & International Treaties

We all share Earth's resources and must work together to protect them. There are many international laws and treaties dealing with environmental issues. In this lesson, we'll give you a brief introduction to some of the major ones you should know.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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