Skip to content

Chapter 7 of 8

Economy, Policy, and Justice

The dominant industrial model is a linear economy organized around taking resources, making products, and disposing of them, which depletes resources and generates waste. A circular economy is designed to eliminate waste through reuse, repair, and recycling. Composting decomposes organic matter into a soil amendment, biodegradable materials break down naturally through microbial action, and compostable materials break down specifically under composting conditions into nutrient-rich soil. Even so, modern life produces e-waste, discarded electronics, that is difficult to recycle safely. Extended producer responsibility makes manufacturers responsible for their products through end-of-life management, reducing the burden on municipalities. Greenwashing, meanwhile, refers to misleading environmental claims by companies, which makes accurate evaluation tools like life cycle assessment, a method for evaluating environmental impacts across a product's entire life, more important.

Every activity carries a carbon footprint, the total greenhouse gases it emits. Personal carbon footprints vary widely, from roughly 4 tons per person per year in low-income countries to more than 16 tons in the United States, with the largest sources typically being transportation, food, home energy, and overall consumption. Food choices matter significantly because red meat, especially beef, carries much higher emissions than most other foods, plant-based diets generally have lower emissions, and roughly one-third of all food is wasted, generating substantial emissions. Ecosystem services, the benefits humans derive from nature such as pollination, clean water, and climate regulation, are grouped into four categories: provisioning, regulating, cultural, and supporting. These services reflect natural capital, the stocks of natural resources that produce them, and economic frameworks are increasingly trying to value them.

Environmental economics applies economic tools to environmental problems. A Pigouvian tax, such as a carbon tax, places a fee on activities that generate negative externalities, while cap-and-trade systems set an overall cap on emissions and let firms trade permits. Broader policy frameworks include the proposed Green New Deal, which addresses climate change and economic inequality together, and ESG criteria, which rate investments on environmental, social, and governance factors. The United Nations' Sustainable Development Goals (SDGs), a set of 17 goals adopted in 2015, express the principle of sustainable development: meeting present needs without compromising future generations. Two underlying principles guide many environmental laws: the precautionary principle, which holds that uncertain harm should restrain action, and the polluter pays principle, which assigns cleanup costs to those causing pollution. Intergenerational equity, fairness between current and future generations, is the moral foundation of these ideas.

Environmental and climate burdens are not distributed evenly. Environmental justice seeks the equitable distribution of environmental benefits and burdens, while climate justice specifically addresses the unequal impacts of climate change on vulnerable populations, who often contribute least to the problem. Climate vulnerability, the susceptibility of communities to climate impacts, is highest in poorer regions and among marginalized groups, and climate refugees, people displaced by climate-related events, are a growing concern. A just transition aims to shift to a green economy while protecting workers and communities that depend on fossil fuel industries. Supporting all of this requires environmental literacy, an informed public that understands environmental concepts and can act on them, and citizen science, which channels public participation into scientific research and monitoring. Together, these ideas frame sustainability as a social, economic, and ecological challenge at once.

All chapters
  1. 1Foundations of Ecology and Ecosystems
  2. 2Earth's Cycles and the Climate System
  3. 3Climate Impacts on Land and Sea
  4. 4Agriculture, Soil, and Pollution
  5. 5Energy and the Transition to Sustainability
  6. 6Biodiversity and Conservation
  7. 7Economy, Policy, and Justice
  8. 8Climate Action and Solutions

Drill it

Reading is not remembering. These come from the Climate And Ecology deck:

Q

What is environmental science?

An interdisciplinary field studying the interactions between humans and the natural environment.

Q

What is ecology?

The study of relationships among organisms and between organisms and their environment.

Q

What is an ecosystem?

A community of living organisms together with their physical environment.

Q

What is biodiversity?

The variety of life at all levels — genetic, species, and ecosystem.