Environmental Economics

Mr. Anderson introduces environmental economics, emphasizing the importance of considering externalities in economic models. He explains supply and demand using bobble head dolls and highlights the need for sustainable systems. The video discusses replacing GDP with GPI to account for environmental costs and suggests valuation and regulation strategies, such as cap and trade, to manage pollution. The concept of the Kuznet's Curve and the impact of globalization on environmental policies are also explored.

What is the Genuine Progress Index (GPI), and how does it differ from GDP?

Describe the Kuznet's Curve and its implications for environmental economics.

What are some potential solutions proposed to address the issues of pollution and externalities?