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ECO 3620. Environmental Economics

Environmental Ethics

1. Normative vs. Positive Economics
2. Utilitarianism
 
  • Anthropocentric
  • Utility: U(X,P)
3. Social Welfare
 
  • SW = f(U1,U2, ..., Un)
  • Efficiency: maximize SW = U1 + U2 + ... + Un
  • Equity: maximize SW = U1 + U2 + ... + Un subject to Ui < U
  • Safety: maximize SW = U1 + U2 + ... + Un subject to P < P
  • Sustainability: maximize SWt=o = U1 + U2 + ... + Un subject to SWt=1 < SW