EC238 Lecture Notes - Lecture 11: Societal Collapse, Market Failure, Kuznets Curve
Document Summary
All of the alternative measures offer potential contributions. However, some of the characteristics of the alternative measures rely on prices to weight their importance, but in many nonmarket circumstances those prices are difficult, but not impossible, to measure. The above measures all suggest that intrinsic values are important. The ability to measure these values with some confidence is vital, but difficult. Ekc hypothesis suggests that environmental degradation increases with higher incomes up to some income level (the turning point) and then, after that certain income level is reached, high incomes result in lower environmental degradations. The empirical support for this theory is mixed. =gni-d -d mn predictions of societal collapse seem to be exaggerated. Current generations can have both positive and negative effects on the sustainable welfare levels of future generations. Market failures and imperfect markets can promote unsustainable outcomes. Free access to resources or open access to resources promotes unsustainable harvesting.
