Environmental Economics Essay Example | Topics and Well Written Essays - 1000 words - 1

Environmental Economics - Essay manakinTo a great extent, this has impacted on the quality of life of the population. The commercialise economy has confused implications on the general social welfare of the environment. Relative do atomic number 18 both negative and positive. Although negative effects are apparent in the short run, positive effects are more pronounced. It is against this background that this paper reviews the impacts of the grocery economy on environmental security. To enhance a harmonic view, it begins by reviewing the negative effects and so proceeds to evaluating the positive effects. The market decisions place emphasis on maturationd production. According to Morgen, Pizer and Shih (1998), increased sparing production implies an increase in production of wastes. This contributes to environmental pollution and resource depletion. Although incomes are likely to rise, environmental protection remains at risk. Under-valuation of natural resources has made i t difficult for the environmental damages to be communicate effectively. The profits that firms and producers enjoy are not reflective of the environmental damages that production processes impose on the environment. In this consideration, market decisions compromise the wellbeing of the environment. In his research, Kolstad (2010) indicates that the market economy has had significant negative effects on the holistic wellbeing of the environment. ... Ideally, the environmental and naturally resources are considered public property (Harrington, Morgenstern & Nelson, 1999). For this reason, nobody takes state for the negative effects that they suffer. It is contented that waste of important natural resources and resultant environmental decease dis-economises the society. From an economic point of view, this undesirable status has the ability to reduce the marginal cost of economic firms and instead increase the consumers marginal utility. Thus market economy does not have the abil ity to address the various concerns that are related to resource sustainability. While the environment places emphasis on the need for resources to benefit futurity generations, market economy considers the benefits of the environment to present populations only. In this respect, market decisions greatly harm environmental wellbeing and undermine its protection. Besides the preceding negative effects, market decisions also promote environmental protection in different ways. Notably, the government has a stake in market decision making. Relative environmental departments push back for formulation and implementation of environmental regulation. Its provisions require that individuals and firms who engage in environmental pollution and destruction be punished accordingly. Stringent laws can culminate in investment in environment protection by economic firms. In addition, respective firms assume environmentally sound practices in order to hold on the economic losses that are associat ed with violation of environmental protection laws (Lomborg, 2001). Seemingly, decision making under the market economy is done by the government in collaboration with