Environmental Regulations Not Limiting Economic Freedom - Essay Example

Environmental Regulations Not Limiting Economic Freedom Name Institution Introduction The most difficult questions that people in the world ask themselves are the tradeoffs between environment protection and economic development (Thamir, 2003). Economists argue that with stringent environmental regulations, most economies of the world will not develop as the pioneer economists indicated. However, it is the environment that living things depend on and they also deserve equal opportunities of existing in the natural environments. The big question in this context is whether environmental restrictions are violating economic freedoms. This paper argues that with the consequences of environmental mismanagement, people who are objecting to environmental conservation or protection are rather basing their arguments on misplaced science. People should choose between profitability, good returns to share holders, good tax base for the country and the protection of natural-fragile ecosystems for the benefit of the future generation. Therefore, successive governments of the USA since 1960s have been adopting environmental regulations that would limit economic freedoms (NRDC, 2013). This paper denies that environmental regulations are infringing on the freedom of economists but rather act to safeguard the environments for the benefit of the present and future generation. Economic freedom would mean that contemporary and conventional economic practices would deplete the natural resources. Issues of concern The citizens want healthy and clean environment (Glenn & Mats, 2010). Before the government intervened, manufacturing industries led to unhealthy and deteriorating environments. The bigger challenge that Americans have is having both a good environment and stable economy since their want quality life. About three decades ago, majority of the Americans supported policies and regulations aimed at reducing pollution in the industries. Therefore, conservationists today will not wish that the country goes back to the previous years where smoke was characteristic of most industrial cities. After the implementation of these policies, the environment improved to a great deal (Selim & Hakan, 2006). The industrial revolution for instance faced the biggest problem of environmental pollution due to conventional use of resources for economic production. Human beings on the other hand put their priorities first without considering the implications of their behaviors. Economic development is good for the country but the greedy human nature will not allow this process to take place in a sound manner hence the need for environmental regulations. Though everyone wishes for a cleaner environment, they will always capitalize on the maximization of earth’s resources meet their needs and the result in depleted natural resources. Ethically, people show respect to other inhabitants of the earth like other living organisms. If their economic activities infringes on the rights of other living organisms, then the government has the authority to impose rules and regulations on economic activities (Thamir, 2003). This is because there is a mutual relationship between man and other living organisms; if one species is affected by a certain economic activity, then human beings will also feel the effect. Environmental regulations in America Some of the environmental policies in America history include the following (NRDC, 2013) National Environmental Policy Act of 1969 Endangered species act 1973 Water and air pollution acts Solid and hazardous wastes The above policies and regulations prohibit economic activities in certain areas of interest like areas of water catchment and endangered species areas. Besides, the regulations require economic activities that least pollutes the environment as well as proper solid and hazardous waste management. Common sense will tell that a regulation that results in cleaner water for the American people is not limiting the freedom of economists but rather focusing on the welfare of the citizens (NRDC, 2013). On the other hand, environmental regulations requires least economic activities in the ecosystems that have endangered species since the country needs to conserve its valued genetic and species resources. Environmental regulations prohibit development in wetlands and ensure that there is an impact assessment of the industrial activities. European Union and GCC The European Union and GCC have imposed some restrictions of the manufacturing of natural gas since improper use of natural resources has resulted to global climate change (Haris et al, 2013). Interestingly, economists still want the rules and policies imposed by governments with regard to resource use to be uplifted as they consider them vague. The backbone of the economic activities is the manufacturing and processing industries. These firms emit green house gasses that have effect on the global climate. For instance, global conventions such as the earth summit of 1992 emphasized the need for sustainable use of resources. Though many economists played deaf ears to this suggestion, the reality is that the world is currently facing a huge environmental crisis (Thamir, 2003). The constant environmental disasters like the typhoons, hurricanes and tsunamis are the result of unregulated use of natural resources. In Europe for instance, the European Union is now encouraging farmers to us green energy, a move aimed at reducing energy costs or conserving energy. If climate change is real and the effects are being felt, the governments have no choice but to enact laws that regulate resource use which are not aimed at restricting economic activities (Haris et al, 2013). On the other hand, when a country becomes a signatory of global conventions like UNEP, the rules and regulations of such conventions become part of laws of the member states. The global community for instance, has been supporting efforts of such conventions of protecting environments. Major theme of such conventions is sustainable economic developments thus environmental regulations strive to control economic activities for prosperity. Socio-cultural, ethical issues and moral issues that affect manufacturing companies Companies and organizations that engage in economic activities have moral obligation to protect the environment. The current socio-cultural issue that most companies are now adopting is the Corporate Social Responsibility (Wong & Jamilah, 2010). This concept requires al organizations to bear responsibility to their activities. For instance, the companies must ensure that they manage their wastes efficiently and dispose of hazardous that may affect the environment and its inhabitants. On the other hand, the earth and its resources is a gift from God and resource developers must make sure that their activities reflect the best or morally acceptable behaviors with regard to resource use. Other ethical issues includes health and safety of the public since most organizations release untreated industrial effluents like metallic elements and air pollutants that may cause diseases to the surrounding population (Hay & Gray, 2002). If such activities compromise lives of the citizens, the government has no choice but to impose laws that will make the country or the region fit for human habitation. Economic activities also result in the displacement of certain cultural groups. If the government allows these activities to take place in natural and pristine areas, then they will affect lives of such natives. For instance, conventional tourism has been associated with immense environmental degradation. Economically, tourism benefits the country to a large extent but the main question that lingers in everyone’s mind is whether the environment will support these activities in the future. The other ethical issue is contemporary use of chemicals to enhance agricultural productivity. For instance, the use of pesticides and inorganic fertilizers have affects both soil and its organisms (Glenn & Mats, 2010). Every living thing plays an important role and destroying them will mean that the ecosystem functions and processes are disturbed. The government therefore has put up regulations that and will regulate the use of these chemicals. It is also not morally acceptable to use these chemicals in areas prone to flooding since rains wash away these chemicals and they end up in the domestic water How to address potential dilemmas To address the need for healthier and clean environment, education and awareness creation is important. Many economists think that it is their right to develop and get the maximum gains from the environment. These activities take place in the environments that have certain carrying capacities beyond which they will not support such economic activities. Environmental regulations are necessary but the only problem is that people see them restrictions to economic development. The other best way to address environmental ethical dilemmas is by encouraging organizations to embrace the concept of cleaner production (Glenn & Mats, 2010). The cleaner production approach entails a close monitoring of the production processes from inputs to outputs to ensure that the plants regulate their emissions into the environment. In fact, most companies are now adopting this approach. The best way to go about environmental dilemmas is through cost-effective approaches. Though the US government has been imposing sound environmental regulations on the economic activities, it should not result in economic meltdown but rather a stronger economy. To do so, the private sector must work together with the government is ensuring sound and sustainable development. For instance, in addressing emission dilemmas, the government has closed up to 66 refineries for the past 20 years. However, the economic effect of environmental pollution is much greater than just losing an economic activity because the future generation also wants to use the same resources (Selim & Hakan, 2006). Conclusion In summary, the environmental regulations do not infringe on the freedom of the economics but rather a move aimed at conserving natural resources. The effect of misuse and mismanagement of natural resources is being felt globally as it manifests itself in global climate change. Governments have the obligations to provide healthier environments for their citizens. Economic freedom will mean that people use resources the way they want to achieve their personal gains or interests. To address such environmental dilemmas, companies have to adopt new concepts like cleaner production and corporate social responsibility. In a nut shell, these government regulations function to reduce impact of the economic activities on the earth but not reducing the economic gains of the companies since even the government depends on the economic activities for revenues. The economic restrictions are only aimed at controlling economic activities so as to manage the environment and not to impose restrictions on the country’s economy. A sustainable economic development is necessary for economic prosperity. References Glenn, J. & Mats, W. (2010). Introducing environmental concern in manufacturing strategies: Implications for the decision criteria, Management Research Review, 33(9), 877-89. Haris, D., Alexandros, F., Vangelis, M., Mohsen, A. (2013). EU-GCC cooperation for natural gas: prospects and challenges, International Journal of Energy Sector Management, 7(2),194-222. Hay, R.D. & Gray, E.R. (2002). Introduction to Social Responsibility in Keller, D. [ed.] Ethics and Values: Basic Readings in Theory and Practice. Pearson. NRDC, (2013). U.S Law and Policy. Retrieved from Selim C. & Hakan, M. (2006). Degree of environmental stringency and the impact on trade patterns, Journal of Economic Studies, 33(1), 30-51. Thamir, M. S. (2003). Sustainable economic development and the environment", International Journal of Social Economics, 30(1/2), 153-162. Wong, L. C. & Jamilah, A. (2010). Incorporating stakeholder approach in corporate social responsibility (CSR): a case study at multinational corporations (MNCs) in Penang", Social Responsibility Journal, 6(4), 593-610. Read More