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Global warming
1. NB Power vs. Emmra
BUSI 5703: Business Economics
MD Siyam Hossain
Bangladesh Institute of Business & Technology
Narayangonj,Dhaka
Dhaka,Bangladesh
2. Global Warming and Pollution
• Global Warming and pollution are
increasing globally
– Depletion of ozone layer.
– Pollution leading to global warming and
climate change
– Disposal of waste by dumping into sea
creates water pollution
– Air pollution by carbon emissions
MD Siyam Hossain
4. Global carbon emissions
Global carbon emissions from fossil fuel use, from 1850-1990 and
as projected to 2100 - in billions of tonnes of carbon (GtC).MD Siyam Hossain
5. Global Warming and Pollution-
Risk at Glance
• More than 10 million people are at risk for lung
infection, cancer and shortened life expectancy
• 10 cities in eight countries where pollution poses
health risks and fosters poverty.
• 5.5 million people are still threatened by
radioactive material that continues to seep into
groundwater.
MD Siyam Hossain
6. Consequences of Global Warming and
Pollution
• A small rise in temperatures can produce a 10-fold
increase in the mosquito population
• Because of thermal expansion of ocean water and
accelerated melting of glaciers, sea level is likely to rise
by about half a metre by 2100
• There will be more frequent and more intense floods or
droughts, especially in sub-trop-ical areas
• Impacts of global warming may be positive. For some
crops, increased carbon dioxide aids growth
MD Siyam Hossain
7. Global Warming and Pollution
-A Challenge
• A challenge for everybody
• for governments, to set the necessary
framework,
• for business and industry, to seize the
opportunities for innovation and use of ‘clean’
technologies
• for scientists, to provide better information about
likely climate change and its various local
impacts,
• for all communities and individuals in the world,
to support the action being taken and contribute
to it.
MD Siyam Hossain
8. Global Warming and Pollution-
The Role of U.S.
• The United States is the world's largest
emitter of greenhouse gases
• The Kyoto accord requires 35 industrial nations — not
including the U.S., which rejects the pact — to reduce
such emissions by an average 5 percent below 1990
levels by 2012.
• President Bush says such emissions cuts would harm
the U.S. economy and complains that poorer countries
also should be covered.
• Bush administration officials say they recognize the
problem and have plans in place to reduce greenhouse
gas emissions by 500 million metric tons by 2012.
MD Siyam Hossain
9. Spillover costs
• Spillover Costs
- Negative effects of producing or
consuming a product on outsiders,
not market participants.
- Producers of products with
negative external effects focus on
private costs when making supply
decisions.
- Use of free goods or goods whose
prices do not reflect its value.
- Prices are insufficient to cover
both private and spillover costs.
- example: environmental damage
Understanding economics - Mark Lowell
P
Q
Spill over Costs
Private costs
Private + Public costs
So
S1
D
MD Siyam Hossain
10. Spillover costs
• Spillover Costs
- Negative effects of producing or
consuming a product on outsiders,
not market participants.
- Producers of products with
negative external effects focus on
private costs when making supply
decisions.
- Use of free goods or goods whose
prices do not reflect its value.
- Prices are insufficient to cover
both private and spillover costs.
- example: environmental damage
Understanding economics - Mark Lowell
P
Q
Spill over Costs
Private costs
Private + Public costs
So
S1
D
MD Siyam Hossain