Environment change, ozone holes, and melting ice are all global environmental threats that we all face in some way. No one denies this. The current economic system, according to many analysts, is to blame for everything.
Hence, the connection between the economy and the environment, especially in a capitalist system that always prioritizes material gain over human suffering or future consequences.
Green and blue economies that are compatible with the environment and the concept of sustainable development are of interest to some civilized nations. The production of electrical energy from water, various marine resources like gas and oil, rivers, and seas is the focus of the “Blue Economy.”
The capitalist system lives in many industries that are destructive to the environment, environment, and people. Therefore, it is the primary cause of most environmental disasters because it feeds them. The green economy emphasizes clean use in various industries, such as solar and wind renewable energy.
1. Economy and environment’s relationship:
It’s hard to strike a balance between economic growth and protecting the environment. The two concerns may appear to be at odds in some ways. On the one hand, there are some economic activities that harm the environment. They use natural resources in the production process and contribute to the loss of natural capital (directly through the overexploitation of renewable resources and indirectly using resources that are exhaustible). On the other hand, goals for environmental protection can have a negative impact on economic growth by restricting business and consumer behavior through tax and regulatory measures.
2. Economy and the environment. Regular assets consumed by monetary movement:
The natural environment has an impact on all economies, whether they are national, regional, or local. soil quality, topography, or environment. Everything else is produced or consumed differently in tropical regions than in temperate regions. However, these effects are too extensive for economic analysis to include in production or consumption functions.
The Groningen gas field is the source of a phenomenon that economists have dubbed the Dutch disease. Like the situation in the Netherlands, the large increases in income that are brought about by the exploitation of natural resources are having a negative effect on various sectors of the economy.
It is distinct from the use of easily observable physical currents to extract resources from the biosphere. Some have to do with what are called renewable resources. Wood comes from forests, fish comes from rivers and lakes, and fresh water comes from rivers and lakes. Others relate to non-sustainable assets, as they are separated from the world’s stores, ferrous, non-ferrous, and interesting earths. coal, conventional and unconventional crude oil, and natural gas are examples of fossil energy sources.
3. Economy and the environment. Economic activities’ emissions into the natural environment:
Through recovery, an economy is connected to the natural environment as well as the waste it rejects in the form of liquid, solid, or gaseous waste. Some can be absorbed and regenerated on their own, while others cannot because of quality or quantity. Therefore, they are likely to harm biological resources, health, the economy, the lithosphere, the hydrosphere, and atmospheric composition, as well as the quality of the natural environment. This last metropolitan contamination from plant smoke is notable, however the costs as far as building debasement and general wellbeing are not generally simple to gauge.
Due to their production structures, some national economies might feel relatively safe from this local pollution issue by the end of the 20th century. Now that the world impact release has been made public, this is no longer the case. The ozone layer is in danger from Pacific Ocean debris vortices, CFC gases, and methylene chloride. Greenhouse gas (GHG) emissions, the causes of global warming, and radioactive waste with long lives at the poles.
These emissions influence the environment and the economy, both to varying degrees. To either eliminate them or pay taxes to organizations that do so, some businesses are raising production costs. The possibility that some ecosystems will become unbalanced, resulting in a complete halt to economic activity, is even more concerning.
4. Economy and the environment. Costs associated with environmental pollution:
The effects of pollution on the environment can be detrimental to economic growth.
- Economically exploited natural systems like agriculture and fishing have low productivity.
- Extending one’s use of the natural environment incurs high costs, such as the high cost of treating drinking water.
- Significant expenditures for environmental protection-related damage mitigation and remediation.
- Costs incurred both directly and indirectly because of the depletion of energy and raw materials.