Relationship between Economic Growth and Environment - Essay Example

Relationship between Economic Growth and Environment Introduction The interaction between economic growth and environment has remained to be a contentious issue. Increased population growth has created the need for countries to enhance their economic growth. On the other hand, environmental problems such as global warming and global degradation have been associated to increase economic or need to enhance production. The issue however depends on the observer; some people will consider economic growth to be the source of all ills affecting the environment. On the other hand, some will argue that economic growth is essential for sustainability of the environment. This argument is based on the fact that, economic development will enhance efficiency in production leading to sustainable environment. The argument is also supported by the need to develop and promote green sources of energy. This report examines the relationship between economic growth and environment. Environment and Production Environment is key in production and hence the basis of any economy. It has been established that the economic condition of a region depends on the environment. On the other hand, the economic activities in a region have a great influence on the environment. This indicates that there is a direct relationship between the economy and the environment. The living standards of citizens in a given region, is the main indicator of economic status of the region. Economic growth indicates a happy and a satisfied society. A satisfied society has the ability and desire to take care of the environment or is conscious about environmental conservation. This indicates that economic development has positive contribution to the economy. Economic developments indicate availability of exploitable resources. Resources are factors of production or things used to produce other goods and services that satisfy human wants. This implies that the economy of a country requires resources or factors of production. The availability of resources determines the rate of economic growth in a country. Countries with resources such as minerals have stronger economies than countries without recourses. Oil producing countries in the Middle East and Northern Africa have higher rate of economic growth than other similar country. Libya is an African country that has vast oil resource. Although Libya is a desert country, it has a stronger and an active economy than other countries of similar size and population. This applies to other countries with natural resources such as forest and water bodies. Countries such as China and India have the largest population in the world. Such countries have human resource as their main resource. People provide labor and entrepreneurship to the economy of a country. Labor and entrepreneurship are essentials factors in production and economic development (Bromley, Clarke, Hinchliffe, & Taylor, 2009). This factor indicates that economic development in a country is directly related to the status of the environment. Energy Consumption Economic growth leads to an increase in economic activities, which include trade and supportive services. Factors of trade are supportive services that promote trade within a given region. Processing, manufacturing and transport are some of the factors that support trade. Each of these factors is an indicator of economic growth in respective countries and economies. Countries with stronger economies are characterized by increased industrialization and processing activities. In addition, countries with developed economies have well established transport and communication networks. Transport and industrialization rely on energy. Currently fossil fuels the major source of global energy although other source of energy such as solar power, wind, and atomic energy contribute to global energy demand. Currently fossil fuels account for about 80% of the total global energy demand. According to Cherni, oil consumption as the main source of energy has reached its peak in the last few decades (2002). It is estimated that the US consume about 40% of the total oil produced globally. This consumption rate is however being overtaken by other emerging economies such as China and India. Consumption of energy is directly related to economic growth. The Chinese and Indian economy clearly demonstrates this analogy. Currently China has an economic growth of 7.5%; this is a massive rate of economic development that is incomparable other global economies (Cherni, 2002). The country expects greater economic development in a few years. Similarly, China is the second largest consumer of energy or fossil fuels after the United States. The rate of energy consumption is directly related to the rate of pollution. This indicates that great consumers of energy are also great polluters. Currently the US, China and India are the largest global polluters. Environmental pollution caused by the three countries is expected to increase relatively to increases in their economies and levels of production. Carbon dioxide is the main pollutant produced by these countries. It is believed that carbon dioxide is the main cause of global warming that has resulted to an increase in global temperature (Cherni 2002). The quantity of carbon dioxide produced by the three countries is directly proportional to their economic status and energy consumption. This indicates that a country’s economy is directly related to the amount of pollution produced by the country. Countries with stronger economies are therefore big polluters. Economic growth, therefore, leads to environmental degradation through pollution. Demand for resources Economic growth and sustainability require resources such as raw materials. Demand of raw materials in developing economies has lead to overexploitation of resources leading to environmental degradation. Overexploitation of resources affects both the producer and consumer of these resources. Countries, which produce these raw materials, are continuously experiencing environmental degradation resulting from overexploitation of resources. Resources such as forests and minerals are non-renewable. Exploitation of such resources leaves permanent environmental effects in producing countries. Countries in central Africa such ac Gabon and Cameroon have almost become desert countries due the lumbering process that is carried out in their natural rain forests. Countries with mineral resources experience similar problem. Most of these raw materials end up in industrialized countries in Europe and Asia; this has caused devastation in affected countries especially the poor African countries. Such countries have poor economies and unsatisfied society. Increased environmental degradation, therefore, has contributed to poor living standards in third world countries. On the other hand, countries with stronger economies have less environmental degradation resulting from over exploitation of natural resources. This indicates that economic development is inversely related to the level of environmental degradation of a country. Countries with stronger economies therefore have better or well-maintained environment. Technology in Environmental Conservation The current population growth and pressure on resources is inevitable. This indicates that people need to adopt modern means of conserving the environment. Modern environmental conservation measures include artificial mechanism to reduce environmental degradation. Such measures are capital intensive and, therefore they can only be applied in countries with well-developed economies. Developed countries such as the European countries have a better chance to minimize their carbon emission than countries with underdeveloped economies (Bromley, Clarke, Hinchliffe, & Taylor, 2009). Such countries also have efficient transport systems and this greatly reduces their carbon emission. People in underdeveloped economies import second hand machineries and automobiles from developed countries and, this leads to increased pollution. Current pollution problems can be solved through technology and this disadvantageous to countries with underdeveloped economies. The recent nuclear pollution in Japan is a good illustration of the importance of technology in environmental conservation. Japan was able to handle the problem due to its technological capabilities and strong economy. The Hungarian red sludge spill that occurred in 2010 is also an indicator of the importance of economic growth in environmental conservation. The two countries were able to contain their respective disasters due to their economic development. Indicators Of Economic Growth Impacts Of Economic Growth On Environment Increased production Increased transportation and industrialization Population growth Unbalanced investment and use of land Urbanization Overexploitation of resources Increases emission of greenhouse gases and waste Depletion of natural resources Destruction of ecosystems Conclusion Increased economic growth has resulted in increased production and consumption. Increased production has also increased demand for energy and natural resources. This has resulted in over exploitation of resource and increased production of green house gases. The inevitable population growth has resulted to an increase in demand for energy and resources. Countries with stronger economies are therefore in a better position to cope with the resultant environmental degradation than countries with underdeveloped economies. Economic growth is therefore essential in economic conservation. References Bromley, S. Clarke, J., Hinchliffe, S. & Taylor, S., 2009. “Exploring Social Lives (eds)”. Milton Keynes: The Open University Press. Cherni, J. 2002, “Economic growth versus the environment: the politics of wealth, health and air pollution” Palgrave Macmillan, New York. Read More