Republic of the Philippines

CAMARINES SUR POLYTECHNIC COLLEGES

Nabua,Camarines Sur

LECTURE NOTES 3
Environmental History, Politics, and Economics

Conservation and Preservation of Resources

Resources - any part of the natural environment used to promote the welfare of people or other species;
Natural resources are usually either renewable or non-renewable, the former refer to those resources that can
renew themselves in time. These include living resources like forests or non-living ones like wind, water, solar
energy, non-renewable resources, as the name implies, are those that can no longer be tapped once the
available stock at a site is exhausted.

Conservation – defined as the care and protection of these resources so that they can persist for future
generations. It includes maintaining diversity of species, genes, and ecosystems, as well as functions of the
environment, such as nutrient cycling.

Preservation - means to protect or save natural resources in the present for the purpose of using them in the
future.

Exploitation of natural resources is the use of natural resources for economic growth, sometimes with a
negative connotation of accompanying environmental degradation. About 80% of the world's energy
consumption is sustained by the extraction of fossil fuels, which consists of oil, coal and natural gas. Another
non renewable resource that is exploited by humans is subsoil minerals such as precious metals that are mainly
used in the production of industrial commodities. Intensive agriculture is an example of a mode of production
that hinders many aspects of the natural environment, for example the degradation of forests in a terrestrial
ecosystem and water pollution in an aquatic ecosystem. As the world population rises and economic growth
occurs, the depletion of natural resources influenced by the unsustainable extraction of raw materials becomes
an increasing concern. The following are reasons why natural resources are under pressure:
∙ increase in the sophistication of technology enabling natural resources to be extracted quickly and
efficiently
∙ rising human population rates
∙ cultures of consumerism
∙ excessive demand often leads to conflicts due to intense competition
∙ lack of awareness among the population is striking

Consequences of Continued Resource Exploitation

Natural resources are not limitless, and the following consequences can arise from the careless and
excessive consumption of these resources:
∙ Deforestation
∙ Desertification
∙ Extinction of species
∙ Forced migration
∙ Soil erosion
∙ Oil depletion
∙ Ozone depletion
∙ Greenhouse gas increase
∙ Extreme energy
∙ Water gasefication
∙ Natural hazard/Natural disaster
∙ Metals and minerals depletion 1

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GE ELECT 2: People and the Earth’s Ecosystem
Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

The Philippine National REDD-plus Strategy (PNRPS)

The Philippine National REDD-plus Strategy (PNRPS) presents a broad range of strategies and
corresponding activities over a 10-year time horizon (2010-2020), and seeks to prepare forestlands managers
throughout the country to assume responsibility in implementing REDD+ programs, research, projects and
activities with the support of international, national and local agencies, NGOs and other support groups.
Goals of the Environment and Natural Resources Sector for Agenda 21 (Philippine Development Plan 2011-
2016)
1. Improved Conservation, Protection, and Rehabilitation of Natural Resources
∙ Sustainably manage forests and watersheds
∙ Improve protection and conservation of biodiversity
∙ Enhanced coastal and marine resource management
∙ Improve land administration and management
∙ Manage a more equitable utilization of mineral resources
∙ Develop and implement environment-friendly enterprise and livelihood opportunities

2. Improved Environmental Quality or a Cleaner and Healthier Environment

∙ Reduce air pollution in Metro Manila and other major urban cities
∙ Reduce water pollution to improve water quality in priority rivers and other economically and
ecologically important water bodies
∙ Reduce wastes generated and improved waste disposal
∙ Establish a healthier and livable urban environment

3. Enhanced Resilience of Natural Systems and Improved Adaptive Capacities of Human Communities
to Cope with Environmental Hazards Including Climate Related Risks
∙ Strengthen institutional capacities of national and local governments for Climate Change
Adaptation and Disaster Risk Reduction and Management
∙ Enhance the resilience of natural systems
∙ Improve adaptive capabilities of communities

Environmental Legislation

Environmental Law – defined as a complex interlocking body of statutes, common law, treaties, conventions,
regulations, and policies for the purpose of reducing or minimizing the impacts of human activity, both on the
natural environment for its own sake, and on humanity itself
The areas of concern for environmental laws cover the following:
∙ Air and water quality
∙ Global climate change
∙ Agriculture
∙ Biodiversity and species protection
∙ Pesticides and hazardous chemicals
∙ Waste management and remediation of contaminated land
∙ Management of public lands and natural resources

Treaties and Conventions Which Impacted Philippine Environmental Legislation

1. Basel Convention on the Control of Transboundary Movement of Hazardous Wastes and Their
Disposal (1992)
∙ the most comprehensive global environmental agreement on hazardous wastes
∙ aims to protect human health and the environment against the adverse effect of hazardous
wastes
 2. Convention of Biological Diversity
∙ resulted from the recognition that damage to 2

biodiversity can only be effectively dealt with in a g

comprehensive manner (not dealing with specific a

species or habitats)

GE ELECT 2: People and the Earth’s Ecosystem

Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

∙ has three main objectives:

o conservation of biodiversity;
o sustainable use of its components; and
o fair and equitable sharing of benefits arising from genetic resources.

3. Convention on International Trade in Endangered Species

∙ an international agreement between governments
∙ aims to ensure that international trade in specimens of wild animals and plants does not
threaten their survival
∙ widespread information dissemination about the endangered status of many prominent
species

4. Convention on Migratory Species of Wild Animals (Bonn Convention)

∙ aims to conserve terrestrial, marine, and avian migratory species throughout their range
(global)
∙ aims to conserve the populations of:
o European bats
o cetaceans of the Mediterranean Sea, Black Sea, and Contiguous Atlantic Area
o small cetaceans of the Baltic, North-East Atlantic, Irish, and North Seas
o seals in the Wadden Sea, African-Eurasian migratory waterbirds
o albatrosses and petrels
o gorillas and their habitats

5. Kyoto Protocol
∙ broke new ground by defining three innovative “flexibility mechanisms” to lower overall costs
of achieving its emissions targets
∙ mechanisms enable parties to access cost-effective opportunities to reduce emissions or to
remove carbon from the atmosphere in other countries
o emissions trading
o clean development mechanism
o joint implementation

6. United Nations Framework Convention on Climate Change

∙ consider what can be done to reduce global warming and to cope with whatever temperature
increases are inevitable
∙ key objectives are:
o to keep maximum temperature, rise below 2 degrees Celsius
o the commitment to list developed country emission reduction targets and mitigation
action by developing countries for 2020
o mechanisms to support technology transfer and forestry

Philippine Environmental Laws

1. Presidential Decree 1586 Environmental Impact Statement of 1978
∙ formally established in 1978 with the enactment of Presidential Decree no. 1586 to facilitate
the attainment and maintenance of rational and orderly balance between socio-economic
development and environmental protection. EIA is a planning and management tool that
will help government, decision makers, the proponents and the affected community
address the negative consequences or risks on the environment. The process assures
implementation of environment-friendly projects.
 2. Republic Act 6969 Toxic Substances, Hazardous and Nuclear Waste Control Act of 1990
∙ aims to regulate restrict or prohibit the importation, manufacture, processing, sale,
distribution, use and disposal of chemical substances and mixtures the present
unreasonable risk to human health. It likewise prohibits the entry, even in transit, of
hazardous and nuclear wastes and their disposal into the Philippine territorial limits for
whatever purpose; and to provide advancement and facilitate research and studies on toxic
chemicals.
3

3. Republic Act No. 7942 Philippine Mining Act of 1995 e

GE ELECT 2: People and the Earth’s Ecosystem

Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

∙ all mineral resources in public and private lands within the territory and exclusive economic
zone of the Republic of the Philippines are owned by the state
∙ it shall be the responsibility of the state to promote their rational exploration, development,
utilization and conservation through the combined effort of government and the private
sector in order to enhance national growth in a way that effectively safeguards the
environment and protects the rights of the affected community

4. Republic Act 8485 Animal Welfare Act of 1998

∙ An act to protect and promote the welfare of all animals in the Philippines by supervising
and regulating the establishment and operations of all facilities utilized for breeding,
maintaining, keeping, treating or training o all animals either as objects of trade or as
household pets

5. Republic Act 8749 Philippine Clean Air Act of 1999

∙ aims to achieve and maintain clean air that meets the National Air Quality guideline values
for criteria pollutants, throughout the Philippines, while minimizing the possible associated
impacts to the economy

6. Republic Act 9003 Ecological Solid Waste Management Act of 2000

∙ aims to adopt a systematic, comprehensive and ecological solid waste management program
that shall ensure the protection of public health and environment. The law ensures proper
segregation, collection, storage, treatment and disposal of solid waste through the
formulation and adaptation of best eco-waste products.

7. Republic Act 9147 Wildlife Resources Conservation and Protection Act of 2001
∙ an act providing for the conservation and protection of wildlife resources and their habitats,
appropriating funds therefor and for other purposes.

8. Republic Act 9175 Chain Saw Act of 2002

∙ An act regulating the ownership, possession, sale, importation and use of chainsaws,
penalizing violations thereof and for other purposes

9. Republic Act 9275 Philippine Clean Water Act of 2004

∙ aims to protect the country's water bodies from pollution from land-based sources
(industries and commercial establishments, agriculture and community/household
activities). It provides for comprehensive and integrated strategy to prevent and minimize
pollution through a multi-sectoral and participatory approach involving all the stakeholders.

Environmental Economics

Environmental economics - an area of economics that studies the financial impact of environmental policies.
Environmental economists perform studies to determine the theoretical or empirical effects of environmental
 policies on the economy. This field of economics helps users design appropriate environmental policies and
analyze the effects and merits of existing or proposed policies.
Economies depend on the natural environment as sources for raw materials and sinks for waste products. Both
sources and sinks contribute to natural capital, Earth’s resources and processes that sustain living organisms,
including humans; includes minerals, forests, soils, water, clean air, wildlife, and fisheries.

GE ELECT 2: People and the Earth’s Ecosystem

Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

Concepts Encompassing Environmental Economics

1. Sustainable Development
∙ defined by UNEP as “development that meets the needs of the present without compromising
the ability of future generations to meet their own needs.” The concept
analyzes the role of economic development in supporting sustainable development.
∙ The four basic components of sustainable development are economic growth, environmental
protection, social equity, and institutional capacity.

2. Market Failure
∙ Market failure occurs if the functioning of a perfect market is compromised; hence, it is
unable to efficiently allocate scarce resources at a given price as conditions for laws of
demand and supply are not met.
∙ An example can be an environmental good such as clean oceans. It is difficult to price the
value of clean seas and oceans, and there exist no markets for clean water bodies where it
is traded depending on the degree of cleanliness. It is a standard case of market failure.

3. Externalities
∙ Externalities are inadvertent consequences of economic activity that affect people over and
above those directly involved in it. Externalities are also another form of market failure.
They
can either be negative or positive.
∙ A negative externality creates unplanned outcomes that are harmful to the environment or
 directly to the general public. An example can be pollution through industrial production,
which results in unclean air and water and other health risks. The polluting entities may not
incur any costs to address the pollution, even though their activities harm the environment
and negatively affect the surrounding community.
∙ A positive externality is a benefit to other people not directly involved in its generation. A
community nature park can benefit people outside the community who visit family and
friends in the area and would not have contributed to its development. People who benefit
from an economic resource without contributing to its establishment are called “free riders.”

4. Valuation
∙ Valuation is an important aspect of environmental economics, as it helps to evaluate a variety
of options in managing challenges with the use of environmental and natural
resources. The valuation of ecological resources is a complex process, as it is difficult to
assign value to intangible benefits, such as clean air and an unpolluted environment.
∙ Resources can be assigned values depending on use and non-use methods. It’s easier to
assign value to a product in use by observing what consumers are willing to pay.
∙ Opportunity cost pricing, replacement cost, and hedonic pricing techniques can be employed
in the “use” method. The contingent valuation technique is used for the “non-use” method 5

by measuring what consumers are willing to pay for a product they do not use or enjoy.
e

GE ELECT 2: People and the Earth’s Ecosystem

Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

5. Cost-Benefit Analysis
∙ Cost-benefit analysis (CBA) involves weighing the benefits arising from a policy against the
perceived benefits. Hence, the best policy is one in which there is the greatest surplus of
benefits over costs.
∙ Costs and benefits to be realized in the future are discounted using a discount factor to cater
to the time value of money. Benefits include extra income, improved quality of life, clean
water, and beaches, and costs include opportunity costs, internal and external costs, and
externalities.

Economist’s View on Pollution

Marginal cost of pollution - the additional environmental cost that results due to the production of one
additional unit

At low pollution levels, the

environment may absorb the
damage so that the marginal
cost of one added unit of
pollution is near zero. As the
level of pollution rises, the cost
in terms of human health and a
damaged environment
increases sharply. At very high
levels of pollution, the cost
soars

Marginal cost of pollution abatement – the added cost of reducing one unit of a given type of pollution

At high
pollution
levels, the
 marginal cost of eliminating
one unit of pollution is low.
As more and more pollution
is eliminated from the
environment, the cost of
removing each additional
(marginal) unit of pollution
increases.

Cost-benefit diagram - diagram that helps policy makers make decisions about costs of a particular action and
benefits that would occur if that action was implemented.

GE ELECT 2: People and the Earth’s Ecosystem

Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua,Camarines Sur

Economists
identify the
optimum
amount of
pollution
as the amount
at which the
marginal cost
of pollution
equals the
marginal cost
of
pollution
abatement
(the
point at which the two curves
intersect). If more pollution
than the optimum is allowed,
the social cost is unacceptably
high. If less than the optimum
amount of pollution is
allowed, the pollution
abatement cost
isunacceptably high.
 References
∙ Berg, Linda R. et. al. (2017) Visualizing Environmental Science
∙ https://en.wikipedia.org/wiki/Exploitation_of_natural_resources
∙ http://ecac.emb.gov.ph/?page_id=43
∙ https://mg.pnp.gov.ph/index.php/12-operational/4-republic-act-no-9147
∙ https://www.neda.gov.ph/wp-content/uploads/2013/09/CHAPTER-10.pdf
∙ https://corporatefinanceinstitute.com/resources/knowledge/economics/environmental-economics/ ∙
https://study.com/academy/lesson/the-economics-of-pollution-marginal-cost-of-pollution-optimum-amount
of-pollution.html

GE ELECT 2: People and the Earth’s Ecosystem