Module 4: Environment and Society

Module aims

In this module, we will discuss:

• the differences between conventional and ecological economics
• ways that we can monitor economic and environmental progress
• how we can use economics to help improve environmental quality
  the pros and cons of a global economy
• how we can shift to more environmentally sustainable economies
• the role of environmental groups.

Introduction

In Module 1, we learnt about the concept of ecosystem services and why we need to value them. We also learnt that one of the main ways proposed to successfully incorporate ecosystem services into decision making is to develop markets to value and trade these services. In this module we will discuss the current economics model (called conventional or classical economics) which does not incorporate the value of ecosystem services, and the economic system proposed that would incorporate the value of ecosystem services (called ecological economics). We will also consider the role of international trade and the influence of international environmental policy on moving towards solutions for global environmental issues.

Prior to starting this module, you might need to refresh your memory about the definition of ecosystem services. Refer back to Activity 1.3 and answer the following:

• Define ecosystem services. Use a diagram to briefly describe how ecosystem services are produced from natural capital.
• What are the main reasons given for the need to value ecosystem services?
• What are some of the ways ecosystem services have been valued and at what scales?