marginal cost
additional cost of producing one more unit of a good or service
marginal benefit
increase in the benefit provided to a buyer when a seller produces one more unit of a product or service
discount rate
estimate of a resource's future economic value compared to its present value
aesthetic value
value based on putting a monetary value on a pat of nature because of its beauty
option value
value based on the willingness of people to pay to protect some forms of natural capital for sue by future generations
existence value
value based on know that it exists even though we may never see them or use them
cost-benefit analysis
widely used tool for making economic decisions about how to control pollution and manage resources. this is done by comparing estimated costs and benefits for actions such as implementing a pollution control regulation, building a dam on a river, or prese
green taxes
help include many of the harmful environmental costs of production and consumption in the market prices
supply
the amount of a good producers are willing to make at a given price
demand
the amount of a good buyers are willing to buy at a given price
market equilibrium
the point where supply and demand are equal
surplus
when the supply exceeds the demand, resulting in a price decrease; more out there than people want to buy
shortage
when the demand exceeds the supply, result in a price increase; people want more than are available
neoclassical economist
view natural resources as important but not indispensable because of our ability to find substitutes; continuing economic growth is necessary to provide profits and jobs and is essentially unlimited
ecological economist
there are no substitutes for many vital natural resources; conventional economic growth eventually will become unsustainable because it can deplete or degrade many of the natural resources they depend on; redesign our economic and political system to enco
environmental economist
generally agree with ecological economist; encourage more environmentally sustainable economic development by reforming current economic systems rather than redesign
price
where supply and demand meet
opportunity cost
cost in terms of foregoing alternatives
internal cost
direct cost paid by the producer and the buyer of an economic good
external cost
harmful social effect of producing and using an economic good that is not included in the market price of the good
user pays
costumer pay to use services; honest environmental accounting
full cost pricing
cost of a good when its internal costs and its estimated short and long term external costs are included in its market price
cap and trade
sets limit on total emissions of a pollutant and allow countries to buy and sell pollution permits
tradable environmental permits
sets a limit on total emissions of a pollutant or use of a resources the nit issues or auctions permits that distribute the total among manufacturers or users
service-flow economy
a manufacturers makes more money if its product uses the minimum amount of materials