Market Failures and Thermodynamics

Market Failures and
Case Study: Conversion of Mangrove
Ecosystems to Shrimp Aquaculture
Values of Natural Capital:
Mangrove Ecosystems
•Structure, raw materials, stock-flow
•Building materials, charcoal, food
•Function, ecosystem services, fundservices
•Storm protection
•Habitat, nursery
•Waste absorption
•Climate stabilization
•Genetic information
Values of Conversion
Shrimp Aquaculture
•High short term profits, heavily promoted by economists
•Shrimp and fish for 3-5 years
•Carnivorous, net reduction in food production
•Less protein than intact ecosystem
•Massive waste output
•Irreversible(?) destruction of ecosystem
•Why convert?
Impact of Conversion
•On natural capital:
•Loss of Ecosystem services
•Loss of fish production
•On social capital?
•On human capital
Today’s Headlines
• China to Reward Cities and Regions
Making Progress on Air Pollution
• Study Finds Methane Leaks Negate
Benefits of Natural Gas as a Fuel for
– …there is already about 50 percent more
methane in the atmosphere than previously
estimated …methane is leaking from the
natural gas production chain
– New York and other Northeastern states…
push the federal government to regulate
methane emissions.
Today’s Headlines
• Industry Shifts May Aid Comcast in
Takeover Bid
• Bridgestone Admits Guilt in U.S. PriceFixing Case
• California: Warning Labels Are Proposed
for Sweetened Drinks