What you’ll learn17 learning objectivesChoose one objective for a focused lesson, or study the complete topic.—HL.b.1—Economics definition• Studies production, distribution, consumption of goods/services• Supply and demand of resourcesSyllabus objective—HL.b.2—Environmental economics• Economics applied to environment and environmental issues• Technocentric vs. ecocentric perspectivesSyllabus objective—HL.b.3—Market failure• Free market imposes negative environmental impacts• Example: factory pollution with no cost to polluterSyllabus objective—HL.b.4—Polluter-pays principle• Costs of pollution covered by polluter• Solutions: quotas, fines, taxes, tradeable permits, certificationSyllabus objective—HL.b.5—Greenwashing• Marketing as sustainable without changing practices• Example: oil companies claiming clean energy transitionSyllabus objective—HL.b.6—Tragedy of the commons• Unclear property rights → overexploitation• Limitation of free market economics• Alternative approaches: Ostrom's shared pasturesSyllabus objective—HL.b.7—Environmental accounting• Attach economic value to natural resources and depletion• Problematic to achieve consensus valueSyllabus objective—HL.b.8—Use vs. non-use values• Use value: can be established• Non-use value: intrinsic, future use, intergenerational• Estimated by willingness to pay or accept compensationSyllabus objective—HL.b.9—Ecological economics• Economy as subsystem of biosphere• Social system as subcomponent of ecology• Emphasizes sustainable use of natural capitalSyllabus objective—HL.b.10—Ecosystem services valuation• Greater emphasis in ecological economics• "Resource depleted" countries pay "resource rich" to preserve• Creates tensions between countriesSyllabus objective—HL.b.11—Economic growth measurement• Change in GDP (annual percentage)• Per capita GDP better for living standards assessmentSyllabus objective—HL.b.12—Economic growth perspective• Influenced by supply and demand• Linear economy, doesn't account for waste/pollutionSyllabus objective—HL.b.13—Economic growth environmental impacts• Positive and negative effects• Can provide resources for protection or cause degradation• Raises environmental justice questionsSyllabus objective—HL.b.14—Eco-economic decoupling• Separating economic growth from environmental degradation• Absolute decoupling likely impossible• Relative decoupling: reduced degradationSyllabus objective—HL.b.15—Ecological economics and degrowth• Supports degrowth, zero growth, or slow growth• Planned reduction in consumption/production• Particularly in high-income countriesSyllabus objective—HL.b.16—Slow/no/zero growth model• Difficulties: dismantling embedded systems• Measuring social/environmental well-being• Balance ecological footprint with biocapacitySyllabus objective—HL.b.17—Circular economy and doughnut economics• Applications of ecological economics• Product stewardship• Address inequality and injusticeSyllabus objective