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Economics is concerned with how scarce resources are allocated to satisfy human wants. Environmental economics studies how human decisions impact the environment and how policy can be designed to improve environmental quality. There are three fundamental issues: 1) why does environmental degradation occur? 2) what level of environmental quality should be achieved? 3) how can institutions be designed to protect the environment? While some degradation results from lack of information, economics does not judge behavior - it seeks to understand decisions in order to design effective policy. Common explanations like profit motive and immorality are incomplete, as government and non-profit actors also pollute.

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63 views6 pages

As Sing Ment

Economics is concerned with how scarce resources are allocated to satisfy human wants. Environmental economics studies how human decisions impact the environment and how policy can be designed to improve environmental quality. There are three fundamental issues: 1) why does environmental degradation occur? 2) what level of environmental quality should be achieved? 3) how can institutions be designed to protect the environment? While some degradation results from lack of information, economics does not judge behavior - it seeks to understand decisions in order to design effective policy. Common explanations like profit motive and immorality are incomplete, as government and non-profit actors also pollute.

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arslanhanded
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Environmental Economics

Introduction

Economics is the science which studies the allocation of scarce resources in society

as a means to the satisfaction of human wants or desires. In order to deal with the

essential problem of economics, one has to take account of available resources and

methods of production of commodities, their exchange and the way in which

income is distributed. Economics, as it has evolved, is essentially a human-

centered subject. Now a days environment become a hot topic by gradually

increase of temperature and water level in seas. According to the economist

magazine greenhouse emission wormer the atmosphere about 3degree centigrade is

increased. The vital contribution of forests to a sustainable global environment has

long been recognized, especially their ability to give out oxygen and absorb and

store carbon. Of course, destroying forests for wood, increased plantation or cattle

rearing works in reverse – with around half the dry weight of a tree consisting of

stored carbon, much of which is released into the atmosphere when trees are

burned or left to rot. In fact around half the earth’s total forest area has been

cleared by man-made interventions in the past 10,000 years, and today continued

deforestation contributes some 15–17% of the world’s annual emissions of carbon


dioxide (CO2). Forest clearance does still more damage than this, resulting in the

loss of plant sources of many modern medicines and animal species, as well as

threatening the habitats and livelihoods of some 400 million of the world’s poorest

people, and causing increased flooding as bare hillsides fail to absorb rainfall as

effectively as in the past.

Six year ago, in Paris the countries of world committed that avoiding the worst to

eliminate the net greenhouse-gas emission quickly below the 2 degree centigrade

but their progress woefully inadequate. The countries trying to cut down the

emission level but forest from burning is not stopped due to the deforestation direct

impact on the environment become severe.

Economics is concerned with decision making by agents, which include

consumers, firms, government agencies, and non-profit organizations like

environmental advocacy groups. One goal of economics is to understand what

motivates particular decisions. This knowledge is used to anticipate (or predict)

what decisions agents will make in particular contexts. Want to be able to predict

behavior in order to use agents’ incentives and motivations to achieve social goals

-- to conduct public policy when we think it is appropriate.


Environmental economics is the study of agent’s decisions that have

environmental consequences and how to affect these decisions to achieve

environmental quality goals.

Three fundamental issues:

1. What is environmental degradation and why do we have it?

2. What level of environmental quality should we strive for?

3. How do we design institutions to improve and/or protect environmental quality?

Why do we have environmental pollution?

Some common but incomplete explanations:

 Environmental degradation is the result of immoral or unethical behavior. --

If this is true then we all act immorally. -- Environmental economics (and

economics in general) does not pass judgment on people. We only seek to

understand their behavior

 Environmental degradation is the result of the profit motive. Firms only care

about the bottom line, and hence, do not care at all about the impacts their

decisions have on environmental quality.


1) Consumers pollute too

2) Some of the worst polluters are government agencies and they aren’t motivated

by profit. Perhaps the worst polluter in the U.S. has been the Department of

Defense.

3) Globally, significant environmental destruction has occurred under the old

communist regimes, under which there wasn’t supposed to be any profits.

c) Environmental degradation is the result of the lack of information. “If we only

knew how our actions affect the environment we would change our behavior.”

This has occurred to a certain extent and better information is probably a good

thing, but it’s not enough of an explanation. Even if we had perfect information

about the consequences of our actions we would still pollute.


The Economy and the Environment

Explanation
In this diagram we have resources which include the timber fuels
minerals, water use to make the good and services that being consumed waste
outflow into the clean water increase pollution defect the ecosystem residential
waste recycle and flow of emissions decrease environmental health. Environmental
sink dual link to both with resources and welfare.
Measure to take to reduce the risk of
Environmental Degradation

i. Use energy more efficiently


We should use energy most efficiently to reduce the environmental
health because efficient use not only help to increase production but also
help to decrease the temperature of atmosphere.
ii. Conserve water
Water conservation is very essential for use because in our earth
nearly 7% water is drinkable so we should make reserve to save water.
iii. Reduce, reuse, recycle
Reduce the production make some measure to improve the use to plastic
to reduce harness of environment and more lessen the plastic and
increase the ecofriendly material to dispose of.
iv. Travel less
To less travelling of employees also decrease the carbon emission in the
atmosphere and help to improve the environment.

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