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Economic growth and environment
Tourism Sustainability and Climate Change
Dominika Tóthová, dominika.tothova@econ.muni.cz
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Specifics of the environment
•Public goods - Common resources
•Externality
•The environment knows no boundaries
•Complexity and uncertainty
•Irreversibility of changes
•Temporal and spatial variability
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Think about it...
Companies that make paper produce
the chemical dioxin as a by-product of
this activity. Scientists say that once
these substances enter the
environment, the risk of cancer, birth
defects and other health problems
increases among humans.
Why is the production and release of dioxin a serious
problem for society?
Paper mill Slovany. (2021, May 28). In Wikipedia.
https://cs.wikipedia.org/wiki/Pap%C3%ADrna_Slovany
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Externality
= cost or benefit that is caused by one
party but financially incurred or received
by another
- Negative externality
- Positive externality
- Production externality
- Consumption externality
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Negative externalities
Environmental externalities
Positive externalities
• Damage to the environment
• Costs borne by other entities
• Benefits of a Environmental
quality
• Benefits that may not be paid
by other entities
Which externalities appear more frequently in the context of
the environment?
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Think about it...
The different types of goods we consume:
̶ car, ice cream, book, chair
̶ playgrounds, parks, public lighting
̶ rivers, mountains, beaches, lakes
What problems can happen when we don’t pay for
using shared resources?"
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Common resources
rivalrous
non-excludable
overuse and depletation
Main characteristics
Key problem
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Common resources
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Common Resources - Tragedy of the commons
Situations why common resources are used more than is desirable
for society as a whole
Private ownership Collective ownership
Environmental Kuznets curve
̶ ↑ economic growth → ↑ environmental burden
̶ ↑ economic growth → ↓ environmental burden
The consequences of climate change and
other environmental problems
̶ Economic impacts
̶ Social and health problems
̶ Environmental impacts
Climate Change
Environmental Impacts
• Habitat destruction
• Ocean acidification
• Changes in species distribution
Health and Societal Impacts:
• Heatwaves
• Food insecurity
• Climate refugees
Economic Impacts:
• Agricultural losses
• Infrastructure damage
• Insurance costs
Biodiversity loss
Environmental Impacts:
• Ecosystem collapse
• Invasive species
• Reduced carbon sequestration
Health and Societal Impacts:
• Spread of diseases
• Loss of traditional livelihoods
• Mental health impacts
Economic Impacts:
• Reduced fisheries
• Tourism decline
• Increased costs for agriculture
Water Pollution
Environmental Impacts:
• Aquatic ecosystem degradation
• Loss of biodiversity
• Degraded freshwater systems
Health and Societal Impacts:
• Waterborne diseases
• Toxic exposure
• Loss of access to clean water
Economic Impacts:
• Decline in fisheries
• Water treatment costs
• Health care costs
Picture sources:
̶ https://en.wikipedia.org/wiki/File:Sustainability-Components.jpg
̶ Pexels.com
̶ Chat GPT