Economics
1370
Vocabulary
List: Definitions, Part 2
1. NATURAL EQUILIBRIUM (Chap 12): The population
size that would persist in the absence of any outside influences.
2. STABLE EQUILIBRIUM (Chap 12): An equilibrium
where movements away from this population level set forces in motion to restore
it.
3. MINIMUM VIABLE POPULATION (Chap 12): A level of population below which growth in population are
negative (i.e. population decreases to extinction).
4. SUSTAINABLE YIELD (Chap 12): A catch level is
sustainable when it equals the growth rate of the population.
5. MAXIMUM SUSTAINABLE YIELD POPULATION (Chap 12):
The population size that yields the maximum growth rate in population.
6. STATIC EFFICIENT SUSTAINABLE YIELD (Chap 12):
This is the catch level that maximizes the net benefits of the catch.
7. CONTEMPORANEOUS EXTERNALITY (Chap 12): The
over-commitment of resources to harvest an open-access resource such as fish, a
cost borne by the current generation of harvesters.
8. INTERGENERATIONAL EXTERNALITY (Chap 12): Occurs
when over-harvesting an open-access resource results in lower future stocks of
the resource and consequently lower profits for future harvesters.
9. INDIVIDUAL TRANSFERABLE QUOTAS (Chap 12): A
quota on the number of fish that can be taken from a fishery with the following
characteristics: (1) The quotas entitle the holder to catch a specified weight
of a specified type of fish (a kind of property right); (2) The total catch
authorized by these quotas should be equal to the efficient catch for the
fishery; (3) The quotas should be freely transferable among fishermen.
10. HIGH
GRADING (Chap 12): When quotas specify the catch in terms of weight of a
certain species but the value of the catch is determined by the size of the
individual fish, fishermen have an incentive to throw back less valuable
(smaller) fish, possibly resulting in a high mortality rate among smaller fish
and a reduced stock of fish.
11. NEGLIGENCE
(Chap 19): Given that defendants owe a duty to plaintiffs to exercise due care,
defendants will be found in breach of this duty if they have taken less than
the standard of due care and will be ordered to pay compensation for damages
caused. If the defendant has observed a standard of due care then the
victim/plaintiff bears the costs of the accident.
12. STRICT
LIABILITY (Chap 19): Given that an activity causes damage, defendants are
automatically liable for those damages even if they observed high degrees of
due care.
13. DATED
ASSURANCE BONDS (Chap 19): A bond posted as a necessary condition for disposing
of hazardous waste. The amount posted would be equal to the amount necessary to
repair or rehabilitate any environmental damage which might occur in a worst
case scenario between the time at which the bond is posted and the time at
which the bond is refunded.
14. SUSTAINABILITY
AS NON-DECLINING WELL-BEING (Chap 5): According to this view, resource use by
previous generations should not exceed a level that would prevent subsequent
generations from achieving a level of well-being at least as great as that
enjoyed by the current generation. This implies that the value of the capital
stock (natural plus physical) should not decline. (NOTE: This view is also
known as the WEAK SUSTAINABILITY CRITERION.)
15. SUSTAINABILITY
AS NON-DECLINING VALUE OF NATURAL CAPITAL (Chap 5): According to this view, the
value of the remaining stock of natural capital should not decrease. The
emphasis here on preserving natural capital assumes that there are limited substitution
possibilities between natural and physical capital. (NOTE: This view is also
known as the STRONG SUSTAINABILITY CRITERION.)
16. SUSTAINABILITY
AS NON-DECLINING PHYSICAL SERVICE FLOWS FROM SELECTED RESOURCES (Chap 5):
According to this view, the physical flows should be maintained rather than the
simply maintaining the value of the aggregate resources. (NOTE: This view is
also known as the ENVIRONMENTAL SUSTAINABILITY CRITERION.)
17. THE
FULL COST PRINCIPLE (Chap 21): According to this principle, all users of
environmental resources should pay their full cost. (NOTE: This requirement
indicates that environmental protection should occur with INCENTIVE COMPATIBLE
INSTITUTIONS.)
18. THE
PROPERTY RIGHTS PRINCIPLE (Chap 21): According to this principle, local
communities should have a property right over flora and fauna within their
border.
19. THE
STEADY STATE ECONOMY (Chap 21): This state us characterized by constant stocks
of people and physical wealth maintained at some chosen, desirable level by a
low rate of throughput.
20. THROUGHPUT
(Chap 21): Flows of resources and energy which provide direct consumption
benefits and replacement of depreciated capital.
21.
DALY’S
CONCEPT OF A FORCED TRANSITION (Chap 21): Assumes that current standards of living are
unsustainable, thereby
requiring an
immediate transition to a new, lower standard
of living in
order to protect future generations. Also
assumes a
“guided” forced transition will be less painful
than a laissez
faire forced transition. (NOTE: Questions
about these assumptions?)