Course:ECON371/UBCO2024WT1/Reflections/Matthew Lawrence

Reflection #1:

Although I have taken environmental economic courses prior to this one, there are still a few concepts and ideas that stood out. Being in the Sustainability major has shown me just how costly and time excessive environmental problems can be. Many of the concepts we are covering in class are not at all new to me. That being said, the course has changed my perspective on the impacts that certain decisions can create.

Back in first year when I studied Micro and Macro economics, where all variables were set and everything we did was in a controlled environment, this course is quite different. Here we look more closely on certain topics and real world events, analyzing how common economics terms relate and also predict the future of certain events. Through the Wiki assignments, we explore real world issues and relate them to core economic concepts. One of the concepts we looked into was cost-benefit analysis. This is a common economic tool used to evaluate policy decisions. It accesses the pros and cons that certain choice will bring. Throughout this course I have realized that this tool can be effective, but in terms of the environment I would argue it is not. The frame work for this concept is inherently flawed, it struggles to assign monetary values to non-market goods such as clean air, biodiversity and natural beauty. When talking about the environment it contains many aspects that are difficult to assign values to. How can we use this method to access expansion in rural areas when we can't even find values for the ecosystems and fauna that currently resided there?

Another concept that has shifted in my mind is the idea of efficiency and equity. Traditionally in economics it is thought that prioritizing efficiency which maximizes benefits and minimizes waste. The problem is that efficient outcomes may not always be equitable. An example of this could be a policy that maximizes economic efficiency, but also disproportionately harms low income individuals. This could happen when a development brings economic efficiency, but displace a vulnerable community. Due to this I have questioned whether efficiency should always be the primary objective when making economic policies. From a policy perspective, the trade-offs between efficiency and equity are more substantial that I originally thought. This has led me to value policy goals that maximize total wealth while also ensuring the benefits are shared equitably across society. This topic indirectly relates to externalities as some people do not have a say in what might happen to them. From my perspective, this course has shown me just how underemphasized externalities are in other economic courses. We talk all the time about production costs, price of goods, but fail to recognize the externalities that come along with them. In cases of production, it would be pollution. We talk about the efficient level, based on when supply and demand is equal, but is it really efficient if other external costs are not accounted for? Reflecting on externalities has opened my mind about how flawed and limited traditional market based approaches are when it comes to addressing social impacts. These markets will often fail when externalities are significant, which in the real work is quite common.

The part I enjoyed most in the course was the IClicker questions we do. I think it's very interesting seeing the different perspectives we have in the course. How there are so many people interested in the topics, but interested in various ways. The results of these question are often very dispersed, that meaning not all people think or value the same things. I think it's important that we have people with different values assessing issues, as it will bring the most unbiased and equitable results. Diversity of the class is very important and quite exciting to see.

Concluding, this course has strengthened my perspective on economic issues. That being said, I have learned a lot so far and began to question the frameworks of many economic concepts that I learned in my first year. I have enjoyed going into more depth on some of the real world issues that I have interest in. The truth is that the real world is far more complicated that what standard economic models can predict and I look forward to learning more relevant methods and ideas in the future.