Round 2. Fight!

So a couple posts ago I posted about industrial ecology and the economics around it, I now plan to look at a broader view of economics surrounding the environment and energy.

The first evaluation method is known as the economic evaluation method. This assumes that energy and environmental factors can be evaluated the same way that factors of production, goods and services are. Basically, this technique tries to put a price on natural resources, environmental and energy inputs, even on things like clean water, or pollution created from energy production. By assigning values to each of these inputs, we are able to include them into the economic models such as supply and demand curves. By looking at these economic models, one can apply the appropriate technique to get the model to the desired level, such as taxing companies that aren't "going green" or giving a subsidy to power plants that are using renewable forms of energy.

Then there's the ecological economics approach which understands that just looking at clean air, pollution, green energy, etc, in terms of just a price and quantity isn't always applicable or desirable. This method argues that the economic evaluation method doesn't take into account certain ecological concerns and things such as energy flows, carrying capacity, as well as ecological balance must be supplemented into the evaluation methods. This method usually calls for more drastic methods such as changing habits of people, or working more towards conservation techniques instead of just applying economic techniques such as taxes, or subsidies.

So thats some of the basics when it comes to economics with regards to energy and the environment. It seems a little boring to me, so I'm not sure if I'll right another one like I had planned to do. Anyway, to entertain you somewhat, here's what I was listening to while I wrote this post... along with the rest of Girl Talk's new album.