Topic 3:
* Environmental asset (3 functions + diagram)
An Environmental Asset is defined as naturally occurring living and non-living entities of
the Earth, together comprising the biophysical environment, that jointly delivers
ecosystem services to the benefit of current and future generations.
Environmental condition accounting provides a health assessment of ‘environmental
assets, such as agricultural soils, rivers, native vegetation, and wildlife. Assets used in
the account will be documented both in an Asset Table and the Account Summary Table.
These can be any biophysical feature in nature that provides benefits to society: It can be
an ecosystem, such as a forest, a river, or an estuary. It can be a natural resource that
contributes directly to economic activities, such as fish stock, agricultural soil, or
groundwater resource. It can also be an individual species of mammal or bird… Or it can
be any other natural feature.
* Trade off between economic and environment, choices in developed and
developing country
Depending on their income levels and political preferences, different countries are likely
to make different choices about how to balance economic output and environmental
protection. In Europe, 60% of those living in cities breathed air that did not meet
international standards; in North America, that number was 20%. The World Health
Organization’s report indicates that public policy and economic choices can lead to
higher or lower levels of pollution; that there is no trade-off between economic growth
and air pollution; and that the wealthiest countries tend to have the cleanest air.
All countries benefit from making a choice that is productively efficient—that is, a choice
somewhere on the production possibility frontier rather than inside it.
It’s not possible for a country to maximize both its environmental protection and its
economic output. Each country must make a decision about how the two goals should be
balanced—and how to achieve that balance.
Countries with low per capita gross domestic product, or GDP—such as China—tend to
place a greater emphasis on economic output, which in turn helps to produce nutrition,
shelter, health, education, and desirable consumer goods. Countries with higher income
levels, where a greater share of people have access to the basic necessities of life, may be
willing to place a relatively greater emphasis on environmental protection.
* Role of natural resource and economic development. Some important trend in
natural resource consumption and implications to the economy.
+ Natural resource utilization has become critical to the possibilities of long-run
economic growth and by extension sustainable development. The effect of natural
resources on society is as old as human activities as the environment inserts itself
between nature and society.
Natural resources have a double-edge effect on economic growth, in that the intensity of
its use raises output, but increases its depletion rate. Natural resource is a key input in the
production process that stimulates economic growth. However, the depleting character of
natural resources coupled with diminishing returns of factor input implies that
dependence on natural resource utilization is not an optimal strategy for sustainable
growth. By extension, intensive utilization of natural resources undermines sustainable
development. Natural resources have limited direct economic use in satisfying human
needs but transforming them into goods and services enhances their economic value to
the society.
+ Role of Economic Development: Economic development is a critical component that
drives economic growth in our economy, creating high wage jobs and facilitating an
improved quality of life.
A core part of economic development works to diversify the economy, reducing a
region’s vulnerability to a single industry. While tourism plays an important role in
creating jobs, economic development efforts help to grow industries outside of tourism,
including Innovative Technologies and Digital Media, Life Sciences & Healthcare, and
so on. Moreover, economic development helps to protect the local economy from
economic downturns by attracting and expanding the region’s major employers. The
increased presence of companies in the region translates to increased tax revenue for
community projects and local infrastructure. Better infrastructure and more jobs improve
the economy of the region and raise the standard of living for its residents.
+ Trends: 1. More proactive initiatives from business organisations to embrace resource
management. Business organizations are coming to realize that the finite nature of natural
resources can lead to a supply shortage, push up the price of inputs and squeeze the profit
margins; The benefits of embracing resource management are not necessarily confined to
long-term gains. For example, using recycled materials can be cheaper and help to lower
the production cost. The imperative to change patterns of production and consumption
will grow and companies that are ahead of the curve, educating and leading consumers,
will benefit. 2. The trend of green consumption is becoming more and more important.
Currently, consumers are increasingly interested in smart and sustainable consumption, as
well as environmentally friendly products and services right from production to
consumption and use of products. Consumption today not only requires intelligence about
product quality but also requires a deep understanding of the sociality and humanity of
each product. In the context of the Covid-19 epidemic, people and investors have
gradually shifted their shopping habits to “green” consumption channels and prioritized
health protection and renewable energy. 3. Develop a circular economy for efficient
management and use of resources. The complicated development of the Covid-19
pandemic has affected all aspects of global socio-economic life, changed people‘s
perceptions around the world, and deepened the demand for model change. growth
towards sustainable development. In this context, many countries in the world, such as
the countries of the European Union (led by the Netherlands, Germany, Finland, and
Denmark), Canada, the United States, China, Japan, South Korea, and Singapore,
Vietnam are making a dramatic transition to a circular economy.
* Climate change and impacts for Vietnam
Climate change is the long-term alteration of temperature and typical weather patterns in
a place. Climate change could refer to a particular location or the planet as a whole.
Climate change may cause weather patterns to be less predictable. Climate change has
also been connected with other damaging weather events such as more frequent and more
intense hurricanes, floods, downpours, and winter storms.
Globally, Viet Nam is the sixth most affected country by climate change. Each year,
increasingly intense and unpredictable weather events cause fatalities and extensive
damage to infrastructures, such as schools and health centers, and impact the livelihoods
of already disadvantaged communities in urban and rural areas.
Children are especially affected by these natural disasters. Access to food, water,
education, and healthcare is threatened and the pressure on communities – resulting from
loss of income and assets – increases children’s exposure to violence, exploitation, and
abuse.
These trends are forecast to intensify over time. By 2050, an expected rise in average
temperatures by 1-2 degrees Celsius will likely result in higher incidences of droughts
with greater intensity and increased rainfall leading to a one-meter rise in sea levels along
coastal regions. This will have life–changing impacts on lowland regions with no
adaptation measures, with nearly half of the Mekong Delta region – critical for food
security and the nation’s economy – particularly at risk. For communities, this will mean
reduced incomes and crop yields, degraded natural resources, loss of assets and
infrastructure, reduced mobility with no access to work or services, and increased human
diseases, resulting in decreased labor productivity.
• Green growth
Green growth is a term to describe a path of economic growth that is environmentally
sustainable. It is based on the understanding that as long as economic growth remains a
predominant goal, a decoupling of economic growth from resource use and adverse
environmental impacts is required. As such, green growth is closely related to the
concepts of green economy and low-carbon or sustainable development. The main driver
for green growth is the transition towards sustainable energy systems. Advocates of green
growth policies argue that well-implemented green policies can create opportunities for
employment in sectors such as renewable energy, green agriculture, or sustainable
forestry.
Topic 4:
+ Labor force, employment, unemployment (cách tính) (DONE)
* Labor mobility: Trends, pros and cons, implications
Labor mobility refers to the ease with which laborers are able to move around within an
economy and between different economies. It is an important factor in the study of
economics because it looks at how labor, one of the major factors of production, affects
growth and production.
There are two primary types of labor mobility: geographic and occupational. Geographic
mobility refers to a worker’s ability to work in a particular physical location, while
occupational mobility refers to a worker’s ability to change job types.
+ Pros: Geographic Mobility: Increase productivity. Not all laborers added to the labor
supply will be unskilled. An influx in laborers can increase productivity if they bring
