Overconsumption (economics) in the context of "Marginal cost"

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⭐ Core Definition: Overconsumption (economics)

Overconsumption describes a situation where consumers overuse their available goods and services to where they cannot, or do not want to, replenish or reuse them. In microeconomics, this is the point where the marginal cost of a consumer is greater than their marginal utility. The term overconsumption is quite controversial and does not necessarily have a single unifying definition. When used to refer to natural resources to the point where the environment is negatively affected, it is synonymous with the term overexploitation. However, when used in the broader economic sense, overconsumption can refer to all types of goods and services, including artificial ones, e.g., "the overconsumption of alcohol can lead to alcohol poisoning." Overconsumption is driven by several factors of the current global economy, including forces like consumerism, planned obsolescence, economic materialism, and other unsustainable business models, and can be contrasted with sustainable consumption.

Defining the amount of a natural resource required to be consumed for it to count as "overconsumption" is challenging because defining a sustainable capacity of the system requires accounting for many variables. A system's total capacity occurs at regional and worldwide levels, which means that specific regions may have higher consumption levels of certain resources than others due to greater resources without overconsuming a resource. A long-term pattern of overconsumption in any region or ecological system can cause a reduction in natural resources, often resulting in environmental degradation. However, this is only when applying the word to environmental impacts. When used in an economic sense, this point is defined as when the marginal cost of a consumer is equal to their marginal utility. Gossen's law of diminishing utility states that at this point, the consumer realizes the cost of consuming/purchasing another item/good is not worth the amount of utility (also known as happiness or satisfaction from the good) they had received, and therefore is not conducive to the consumer's wellbeing.

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Overconsumption (economics) in the context of Biodiversity loss

Biodiversity loss happens when species disappear completely from Earth (extinction) or when there is a decrease or disappearance of species in a specific area. Biodiversity loss means that there is a reduction in biological diversity in a given area. The decrease can be temporary or permanent. It is temporary if the damage that led to the loss is reversible in time, for example through ecological restoration. If this is not possible, then the decrease is permanent. The cause of most of the biodiversity loss is, generally speaking, human activities that push the planetary boundaries too far. These activities include habitat destruction (for example deforestation) and land use intensification (for example monoculture farming). Further problem areas are air and water pollution (including nutrient pollution), over-exploitation, invasive species and climate change.

Many scientists, along with the Global Assessment Report on Biodiversity and Ecosystem Services, say that the main reason for biodiversity loss is a growing human population because this leads to human overpopulation and excessive consumption. Others disagree, saying that loss of habitat is caused mainly by "the growth of commodities for export" and that population has very little to do with overall consumption. More important are wealth disparities between and within countries. In any case, all contemporary biodiversity loss has been attributed to human activities.

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Overconsumption (economics) in the context of Individual and political action on climate change

Individual action on climate change describes the personal choices that people can make to reduce the greenhouse gas emissions of their lifestyles and catalyze climate action. These actions can focus directly on how choices create emissions, such as reducing consumption of meat or flying, or can focus more on inviting political action on climate or creating greater awareness of how society can become greener.

Excessive consumption is one of the most significant contributors to climate change and other environmental issues along with population increase, although some experts contend that population remains a significant factor. High consumption lifestyles have a greater environmental impact, with the richest 10% of people emitting about half the total lifestyle emissions. Creating changes in personal lifestyle, can change social and market conditions leading to less environmental impact. People who wish to reduce their carbon footprint (particularly those in high income countries with high consumption lifestyles), can for example reduce their air travel for holidays, use bicycles instead of cars on a daily basis, eat a plant-based diet, and use consumer products for longer. Avoiding meat and dairy products has been called the single biggest way individuals can reduce their environmental impacts.

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