Chapter 3 Notes

ReviewChapter 1: • Citizens are searching for a solution to the problems of

sustainability and satisfying the “Triple Bottom Line” (Social, Ecological, Economic)

Chapter 2:• Decisions are based on a Cost/Benefit Analysis • The values that impact decisions are as varied as the

worldviews.• The Economic Market Value (Buyer and Seller

Transaction) has the most impact in decision making in our society.

A case for regulation• Sustainable solutions can only be achieved if we

move from a neoclassical economic model to an Environmental or Ecologic economic model. Move from using a growth-based GDP to an inclusive GPI economic measurement system

• To create Sustainable solutions we must find a way to include long term external costs and benefit in the market relationship between buyers and sellers.

• Regulations are required if we are to achieve sustainability.

History of Environmental PolicyFirst Wave

• Encourages Growth, Expansion, Extraction of mineral and resource wealth, population growth, destruction of habitat. Nature is an obstacle to be overcome. Nature is to be used without regard for sustainability.

• General Land Ordinances of 1785 and 1787• Homestead Act of 1862• Mineral Lands Act of 1866• General Mining Law of 1872• Timber Culture Act

Second WaveA response to the first wave

• Promotes conservation of resources and preserves habitats. Protects forests, watersheds, etc.

• National Parks established• National Forests• Wildlife Preserves• Soil Conservation and Land Management Laws• Wilderness Act of 1964

Third Wave• A response to the development and production of chemical

pollutants in the air, water, and soil in the 30’s, 40’s, and 50’s and the toxic effects of chemicals on the environment, wildlife and Humans.

• Rachel Carson “Silent Spring”• Burning of the Cuyahoga River• Oil Spills in Santa Barbara, California• Smog and Poor Air Quality in Cities• Acid Rain• Ozone Layer Depletion• NEPA• Clean Water Act• Clean Air Act• Toxic Substances Control Act

Fourth Wave?

• A response to the awareness of the limited resources in the world

• Peak Oil – that we may run out of oil• Overpopulation• Inadequate Food Production• Sustainability Efforts• Climate Change

NEPA: The Greatest Regulatory Change (National Environmental Policy Act, 1970)

• Required an Environmental Impact Statement (EIS) before any federal project can proceed.– Requires public notification– Must respond to public concerns

• Established the Environmental Protection Agency (EPA) Consolidated all environmental agencies under one agency to give it more coordination and greater impact.

5 functions of the EPA

• Conducting and Evaluating Research on the environment

• Monitoring environmental quality• Setting and Enforcing standards for pollution

levels• Assisting States in meeting standards and

goals• Educating the public

CEQA

• California Environmental Quality Act– Requires an Environmental Impact REPORT for

State Projects

Legal Stuff• Tort law (lawsuits) were not effective because

as long as the costs of the pollution was less than the costs of cleaning up the pollution the cases were lost.

• Legislative Acts were effective because the government has the right to issue permits

• Regulatory Takings – the government cannot, through regulation, deprive a person or company of the value of its resources without compensation. This protects businesses.

Solutions to Environmental Problems of Sustainability

• Bring external costs and long term costs into the Market (the relationship between the buyer and seller)

• Requires Regulation and Enforcement

Non-market Regulation“Command and Control”

Sets strict limits with strict penalties (Fines, Jail, Shut down business)• Quick• Sometimes Difficult or costly to enforce• Creates a political backlash or resentment

of environmental protection•May not meet the economic standards of

the Triple Bottom Line

Market-Based Regulations

Involves the Market (the buyers and sellers) in enforcing regulations Taxes/Tax Breaks/Green Taxes Subsidies/Incentives Cap and Trade (Permit Trading or Emission

Trading) Offsets (creates a market for activities that

improve the environment) Ecolabeling

Free Rider• someone who enjoys the benefits of an activity

without paying for it.• The term free rider comes from the example of

someone using public transportation without paying the fare. If too many people do this, the system will not have enough money to operate.

• Another example of a free rider is a factory who does not reduce his or her share of pollutants because of costs. If too many factories do this the regulations are ineffective.

• How do you reduce free riders?

Political Influences on Policy

• Lobbying• Campaign Contributions• Revolving Door• Politicizing Science-Political Appointed Agency

Executives change or hide scientific reports they don’t like.

Science’s influence on Policy

• Research, Measurement, • Peer Review, Objectivity, Accuracy• Not influenced by economic or cultural values

or worldviews

Role of the Judiciary

• Laws cannot be enforced by the courts unless a citizen or organization brings a lawsuit.

• For environmental laws to be effective, citizens or organizations must use the courts as a “TOOL” to force polluters to comply with the laws.

International Environmental Regulations

• International Treaties• Environmental Tariffs• International Laws• World Bank• World Monetary Fund• United Nations (UN)• European Union (EU)

Influence of Business, Consumer or Industry Organizations

–Sustainable Forestry Initiative SFI–Forest Stewardship Council FSC–Marine Stewardship Council MSC–Chambers of Commerce–Other industrial organizations• American Plastics Council

NGO’s (Non- governmental Organizations)

– World Wildlife Fund– Nature Conservancy– Green Peace– Sierra Club– Audubon Society

Government Policy

Regulation

Primary Influence

Science

VotingLobbying

CampaigningProtesting

Courts/Lawsuits

Public(NGO’s)

Private Organizations(Industry Groups)