.
Title:
Economics Or
Environment
CONTENTS
• Introduction.
• Economics and the Environment
Interconnected Concepts.
• Economic in Environmental
Analysis.
• Environmental Problems and their
Solutions in Economies.
• Mutual Dependence.
• Environment Provides Resource’s
to the Economy.
• Environment assimilates the waste
and provides utility
• Need for us.
• Question & Answers
• Conclusion
• Bibliography
INTRODUCTION
• Environmental cost benefit analysis and input-
output analysis becomes integral part of
mainstream economics. It is key consideration
in all the decisions of production, factor
allocation, pricing etc. There are two types of
market systems, market oriented and state
oriented. Market Oriented system creates more
pollution problems than the state oriented
system.
• Environmental considerations are very
important in Micro and Macro economics,
agriculture, industrial economics, public
finance, regional economic planning etc.
Environmental policy becomes an important
part of economic policy. Environment Ministry
implements this environment policy. This
Ministry is considered as a ‘super ministry’,
because all other ministries have to depend on
this ministry.
ECONOMICS IN
ENVIRONMENTAL
ANALYSIS.
• Environment resources, their allocation and
utilization are considered in the context of their
economic cost benefit. The demand and supply,
benefit and losses, equilibrium of environment
resources all are analyzed in the context of
economics. There are many environment
theories which have developed with the
integration of economic theories. These include
environment resource planning, sustainable
environment, development environment, input-
output model, environment cost analysis,
environment policy, environment pricing,
environment budgeting, environment fiscal
analysis etc.
• scarcity of natural resources is crucial problem
of developing countries. Economists can guide
to environment analysis in obtaining maximum
satisfaction of wants within the context of
limited natural resources. Economics can guide
environmentalists to decide that manner in
which either maximum benefits or minimum loss
would be obtained. We can explain pollution
problems in economic terminology.
ENVIRONMENTAL
PROBLEMS AND THEIR
SOLUTIONS IN
ECONOMIES.
With the help of input-output analysis,
cost benefit analysis, pollution tax and
environmental subsidies, economics
shows various ways and means to solve
the environmental problems.
Environmental problems are basically
man-made and economics has solution
for them. There should be no over
utilization of natural resources. We
should develop some basic standards for
use of natural resources.
MUTUAL
DEPENDENCE
• There are environmental causes for economic
problems and economic causes for environment
problems. There are economic solution for
environment problems and environment solution
for economic problems. In the same way,
environment theories are needed for economic
theories and economic theories are essential for
environment theories.
• Industrial and domestic wastes are the prime
cause of water pollution and air pollution.
Polluted water gets absorbed in land and
creates land pollution. Economics has a solution
for this. According to economics, air, land,
water, river, ocean etc. are public goods which
spread out pollution. We should control these
polluted public goods.
ENVIRONMENT
PROVIDES
RESOURCE’S TO
THE ECONOMY
• Environment provides land, water, air,
energy resources, coal, oil, forests,
minerals and metals and so many other
natural resources which are essential
for the economic development of the
economy. It provides services which are
directly used by the consumers i.e. air
we breathe and water we drink as a
liquid of life. It provides forests, water
reservoirs, rivers etc. and wildlife
sanctuaries which also play economic
roles for the mankind.
ENVIRONMENT
ASSIMILATES THE
WASTE AND PROVIDES
UTILITY
• Natural resources are input to the
economic system and natural wastes are
recycled. For example, trees dispose of
their leaves, decompose and are
converted into an organic fertilizer for
plants. Whatever we use up for way of
resources, must end up somewhere in
that environment system and cannot be
disappeared or destroyed.
• Environment takes the non cyclical
wastes and converts them back into
harmless or ecologically useful
products. It acts as a sink for all the
waste products that are the result of the
process of production and consumption.
The environment is not a passive sink, it
acts upon the waste products to clean
up the environment.
• Need for us
NEED OF NEED OF
ENVIRONMEN ECONOMY
T
The environment The economy of a
fullfills the basic nation empowers its
necessity to stay citizen to learn and
alive i.e. Food, air, grow.
and water.
The environment The strong economy
absorbs all the of a nation leads to
pollutants released infrastructural
by Industries and development.
vehicles.
The environment Economy processes
provides major raw raw material to make
materials for finished goods.
industries.
The environment The economy invests
provides industries in developing
with all the natural technology to
resources. optimize the use of
natural resources.
Question
Answers
i. What is meant by macroeconomics?
Ans : Macroeconomics is a branch of economics that
studies how an overall economy, the
market or other systems that operate on a large
scale behaves. Macroeconomics studies
economy-wide phenomena such as inflation, price
levels, rate of economic growth,
national income, gross domestic product (GDP), and
changes in unemployment. The two
main areas of macroeconomic research are long-
term economic growth and shorter-term
business cycle
ii. What is the political Environment?
Ans : Political Environment is the state, government
and its institutions and legislations
and the public and private stakeholders who operate
and interact with or influence the
system. The political atmosphere should be good and
very stable for a firm to operate
successfully. Political Environment forms the basis
of the business environment in a
country. Political Environment can be of utmost
importance for a business. How a
government makes policies and what kind of
economic measures it takes can determine the
success or failure of a business
iii. What is meant by the business
Environment?
Ans : Business Environment is sum or
collection of all internal and external factors
such
as employees, customers needs and
expectations, supply and demand,
management,
clients, suppliers, owners, activities by
government, innovation in technology, social
trends, market trends, economic changes,
etc. These factors affect the function of the
company and how a company works
directly or indirectly. Sum of these factors
influences the companies or business
organisations environment and situation.
iv How economic factors affect the
business environment?
Ans : Economic factors affect the economy,
including interest rates, tax rates, laws,
policies, wages, and governmental
activities. These factors are not directly
related to the
business but influence the investment
CONCLUSION
• Saving the Environment with Economic Ideas is
a set of lessons for high school that provide
students with the opportunity to participate in
simulations. These simulations demonstrate the
potential results of economic-related actions
and policies taken and made by the government,
businesses, or individuals to conserve and
protect many of the natural resources used in
the production and consumption of goods and
services. Students see in action concepts such
as resource allocation, scarcity, value, property
rights, negative externalities, and emissions
taxes and are encouraged to have lively
discussions about what they observe and apply
it in various situations. Engaging students in
hands-on simulations and application of real
environmental concerns helps students learn
and analyze how economics plays a significant
role in developing ideas and solutions that are
put into action to save the environment.
BIBLIOGRAPHY
• [Link]
• Google search engine
• [Link]
/environment-and-economy
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