1
What are ecosystem services, and why are they important to ecosystems and human populations?
INFOGRAPHIC 6.1
The water cycle is an example of:
natural interest.
an external cost.
an internal cost.
an ecosystem service.
D
Which ecosystem service is estimated to have the highest annual monetary value?
Nutrient recycling
Food production
Pollination
Waste treatment
A
How can it be useful to place a monetary value on ecosystem services, even if we know it will not be accurate?
We are more likely to protect these vital services if we acknowledge that they do have value to us.
2
What is an ecological footprint, and how does it relate to our use of natural interest and natural capital?
INFOGRAPHICS 6.2 AND 6.3
The land needed to provide the resources for and assimilate the waste of a person or population is referred to as:
sustainable development.
natural interest.
an ecological footprint.
true cost accounting.
C
Readily produced resources that can be used and still leave enough natural capital behind to replace what we took are known as:
renewable resources.
natural interest.
investment capital.
scarce resources.
B
The sap of maple trees (sap is “food” for the tree) can be tapped to make maple syrup, but taking too much will kill the tree. In this example, what would constitute the natural capital, and what would be the natural interest?
The natural capital would be the maple trees that produce the sap (was well as the resources they need to grow such as water, soil, nutrients, etc.). The natural interest would be the amount of sap that could be taken without compromising the tree’s ability to grow and produce sap the next year.
3
What factors influence how much human actions impact the environment, and how can we reduce that impact?
INFOGRAPHIC 6.4
True or False: Researchers use the IPAT model to estimate the size of an individual’s ecological footprint.
FALSE
What is the IPAT model? How is the equation I = P × A × T similar to and/or different from the equation I = (P × A)/T?
The IPAT model states that human impact on the environment (I) is a function of population size (P), affluence (A) and technology (T). As each of these increases, so too does human impact on the environment. But better technologies that improve efficiency and reduce resource use or pollution can actually reduce impact. In this case the equation becomes I = (P × A)/T.
4
What are externalities and internalities in the business world, and how do they relate to true costs?
INFOGRAPHIC 6.5
Which of the following is an internal cost of coal mining?
Pollution to nearby communities
Long-term health effects suffered by miners
Wages paid to workers
The loss of wildlife close to the coal mine
C
If we included external costs in the cost of a good or service, we would expect the price to:
go up as the users become responsible for paying all the costs.
go down because the environmental impact decreases.
go down because it is shared by more people.
stay the same because external costs don’t affect pricing.
A
What is true cost accounting, and why would it be good for the environment if businesses internalized all external costs?
True costs accounting internalizes external costs when determining a fair price for a product or service in order to identify not only the financial investment made by a business but also the environmental and societal costs of doing business. When a good or service is priced at its true cost, the environmental impact of a consumer choice should go down since the price will have to reflect steps that address (or prevent) environmental problems.
5
What concerns do ecological economists have with mainstream economics, and what suggestions do they offer to help businesses and consumers make better choices?
INFOGRAPHICS 6.6, 6.7, AND 6.8
What does the term cradle-to-cradle mean when talking about product management?
Product materials must be tracked from production to disposal.
The product is potentially more dangerous to children.
Current legislation is too restrictive on new product development and causes the early demise of new businesses.
Production is cyclical: “Waste” becomes the raw material once again and can be reused.
D
Which of the following statements about sustainability is false?
The ecological footprint of industrial processes could be reduced by transforming linear production processes into circular ones.
The U.S. rate of consumption is not sustainable; if the world population consumed as much as the average U.S. citizen, we would need over six Earths.
In its current form, mainstream economics is the optimal model for building sustainability because external costs are built in.
Technology can be used to promote sustainability and decrease human environmental impact.
C
In addition to failure to consider true costs, identify and explain four erroneous assumptions that mainstream economics makes with regard to the environment.
1. it assumes all resources are either unlimited or substitutional (this is not true for all resources, i.e. fossil fuels are finite and we have not yet been able to come up with replacements at current levels of use) 2. ongoing economic growth is possible (despite limits for finite natural resources). 3. production can follow a linear sequence: inputs → production /product → waste (this ignores the usefulness of waste as a resource) 4. future productivity (long term value) is not as valuable as short term gain of immediate use or liquidation of a resource (this “discounting the future” allows resources to be exploited without considering the impact of their loss to future users)
What actions did Interface Carpet use to become more sustainable?
Interface mimicked nature to develop their TacTiles technology (a safer glue based how a gecko lizard clings to walls and ceilings); they used a life-cycle analysis to identify impacts at every stage, allowing them to reduce waste and make better material and process choices. Interface also revolutionized its operations focusing on leasing rather than selling the product itself; this encourages Interface to produce carpet that is durable, recyclable, and also easily replaceable.
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