Economics of an Environmental Issue - Case Study Example

Economics of an Environmental Issue

Abstract

Environmental and economic problems are the most controversial issues of the present scenario. In this respect, it can be inferred that both aspects are interconnected with each other in different manner. To gain a comprehensive knowledge regarding the stated perspective, the study has illustrated the case scenario of Tennessee Valley Authority in terms of Tellico Dam and reservoir construction (Tennessee Valley Authority v. Hiram Hill). During the construction of dam and reservoir, the authority faced environmental issue related with the violation of endangered species act. As per the case scenario, the study has depicted a detailed analysis regarding the perspective of the case and its consequences. The discussion has enriched with available scholarly literatures and analysis regarding the legal aspects associated with the environment and economic factors.

Economics of an environmental issue

The growing issues associated with the environment have some form of impact over the economy. Environment issues and economic development are the two alarming global concern for a country and thus require in-depth analysis. Both of the aspects are comprehensively associated with the human needs and essentialities concerning progress rate of a country. In this regard, law and regulations imposed by the government are able to support the economy and environment to value the existence of human and other species (Vig & Kraft, 2015). This particular research paper focuses on the case study of Tennessee Valley Authority v. Hiram Hill et al., or TVA v. Hill, 437 (1978) to understand the economics associated with environmental issues. . The case has related with the construction of a Tellico Dam and reservoir on the Tennessee valley river (Murchison, 2007). The study focuses that river is a natural biomass for several species living in water body and thus its protection is necessary concerning the environmental issues. As per the scenario of construction of dam, there might be numerous chances to harm the natural biosphere of the river. On the other hand, concerning economic viability it can be mentioned that several families are also depended over the river directly or indirectly. Furthermore, the construction of dam provides employment to several dependent people, which is effective in terms of economic development. In this context, based on these negative consequences of the construction of Tellico Dam and reservoir, former lawsuits were filed against the construction company. These lawsuits based on the Environmental Defense Fund and National Environmental Policy Act (NEPA) (Murchison, 2007). The issues raised regarding the lawsuits are associated with the violation of endangered species act, along with injunction required for the halt of the dam constructions. This study has highlighted the situational analysis of the lawsuits associated with the Tennessee Valley River, and the criticality related facts along with economical analysis over the environmental issue in terms of political themes.

Literature review

Economy and environment

With the advent of globalization, there has been significant growth in the economy. To maintain consistent growth within the economy it is vital for everyone to ensure proper contribution in growth with respect to business as well as associated activities. However, absence of economic consistency within countries discourages feasibility, which is essential for continuous growth tendency (Vig & Kraft, 2015). From the report of of OECD (2012), it can be highlighted that stagnancy in growth components might be destructive for overall feasibility of a country. To evade such type of situations, countries should improve its incorporation of environmental resources effectively as well as ensure optimum utilization efficiently. In this context, Panayotou (2003) emphasized that the major goal of an economy is associated with the maximization of Gross Domestic Product (GDP). Apparently, maximized GDP can evaluate the consistent beneficial circumstances and competitive advantageous position for the country. Environmental resources are an essential aspect of the country’s GDP, which effectively contributed within comprehensive growth of economy. Contextually, environmental contribution within economic aspect has discussed under the certain subject of ecological economics (North, 1990). According to Daly & Farley (2011), ecological economics is an essential subsystem of environment. Additionally, this subsystem comprehensively focuses over the preservation of natural capital of environment. In respect of this stated aspect, Healy (2013) asserted that ecological economics is one of the most important scenario as per today’s environmental conditions and fundamentally, it is focused over the interdependence of human economics and the natural ecosystem despite of time span. On the other hand, in this similar context, Costanza (2010) argued that it is a trans-disciplinary field of economics as well as ecology. However, the subsystem is integrated with psychology, archeology, as well as history. Moreover, Costanza (2010) also commented that the system is able to depict an image of interaction between human and environment in past and forecast the upcoming future. Form this instance, it can be inferred that the environmental balance is always important for the overall consistency and effectiveness. For economical development and improvement, constructive decisions induced effectively towards the stated goals. In this context, it is also mandatory to restrict over-utilization of environmental resources, which can be able to harm the nature and its balance accordingly (Vig & Kraft, 2015; Costanza, 2010).

The effectiveness of interaction and problem situation

From the above-discussed scenario, it clearly depicts that the economy and environment is closely interrelated with each other in terms of growth factors. However, there are several problematic situations associated with the environmental resources, which can pose difficulties for repetitive growth of the respective country. Klein (2014) emphasized that economical growth not only highlighted on the constructive movements of the country, it also showed from the prospective movements of the people as well. According to Green (2008), effective empowerment and absence of unemployment situation with the constructive decision can be able to reveal the comprehensive growth for the country. Nevertheless, there is need of proactive interdependence and utmost win-win situation for environment and economy of the country. Fundamentally, the situation is associated with the fullest utilization of environmental resources for ultimate growth, without contradicting the need of environment and its related people. Contextually, there are several laws under the regulative acts such as Resources Conservation and Recovery Act, Pollution Act, National Environmental Policy Act (NEPA), and Endangered Species Act along with others (Plater, 2004). According to Green (2008), these acts completely concentrate on environmental benefits rather than economical development. Apparently, Garrett (2009) argued that environmental preservation is essential to maintain the balance of nature, but economical growth and cooperative development is not a matter of negligence. In this context, Garrett (2009) also commented that constructions, development might be useful for economic growth of the nation but environment is most essential for human and species’ existence along with the maintenance of the cycle of biosphere. From this instance, the study has been depicted a case scenario associated with the environmental and economical development consequences in terms of legal aspects, which is illustrated in underneath subheading.

The case scenario and resembles

The case is associated with the fact of completing the Tellico Dam and reservoir, which is under the construction of Tennessee Valley River. The Tennessee valley river has the biomasses of several species, which are mostly living in water body and complete the biosphere of river. According to the case, in Tennessee River rare species creates the natural bios, such as Snail Darter. As per the scenario, the dam and reservoir construction had a negative impact on the natural bios of water body, which was not a good sign for the balance of biosphere. In addition, there are several families depended over this particular river for their daily water requirement. Apart from this, the families are also depended over the river in terms of their foods, economic consistencies. However, the scenario reflected that due to the case against the construction of dam resulted unemployment of a number of people, who were mostly depended over the river in order to adhere with their daily requirements for living. In this context, from the situational analysis, it highlights that the Tennessee River Authority has illustrated a developed plan for the population associated with the river. According to Murchison (2007), Tennessee River Authority has illustrated a complete plan for improved economic conditions of the entire region. In respect of this comment, Tennessee River Authority also supports the projects that enhance the consequences of employment as well as economic development of the respective region associated with Tennessee River. On the other hand, regional political parties also supported the particular project of construction to enhance the more job offers for population along with operative economical consistency.

In this context, Garrett (2009) argued that the scenario is not only associated with the positive consequences related with Tellico Dam, there has been numerous negative consequences of this constructions. In respect of this statement, Garrett (2009) asserted that the construction of dam has destroyed the large area of agriculture and farms, in which more than 300 families were depended for their economical consistency. Additionally, the riverside has depicted an enriched historical as well as archeological value of interest, which was harmed due to the construction of the dam. In this context, Plater (2000) supported the fact of history and archeological values and added that environmental balanced has been destroyed due to this construction. As previously mentioned, Tennessee River is the natural biomass of Snail Darter, which is a under the endangered species family. Plater (2002) commented that due to the construction of dam, there were chances that the family of the endangered species would have entirely finished from the biomass of the Tennessee River. From this instance, as per the Act of Endangered Species, the lawsuit was filed against the Tennessee valley authority and the restriction of dam construction was issued due to the chances of eradication of endangered species from the river’s biomass. The Tennessee valley authority tried to explicit the provision of the Act, and stated an argument that such type of large investment like dam and reservoir construction cannot be closed down permanently for the existence of small amount of fishes (Garrett, 2009)

In this context, the Tennessee River Authority derived a comprehensive economic analysis in from of court authority to make them understand the need of the dam for local region and its population in terms of their empowerment along with employment. In addition, Tennessee River Authority also highlighted the fact that the construction of dam is highly useful and most appropriate for operational development and it is an accurate site to invest large amount of public money for utmost economical as well as political improvement. As per the scenario, the court suggested the regulation according the priority of the condition. From this instance, the scenario has depicted that development is needed but not over the environmental imbalanced situation. The court in this regard had implemented restriction order for the construction of dam and reservoir in the Tennessee River and the Authority’s proposal was rejected (Plater, 2002)

Analysis

From the prior discussed case scenario and available scholarly literature reviews regarding the environment and economic development aspects, it clearly highlighted that environment and economy interconnected with each other. As per changing situations in the present scenario, it can be mentioned that for utmost growth and consistency, economic stability is needed for every country. In addition, for effective economic stability nation has to generate some constructional decisions to ensure consistent growth and sustainability with competitive advantageous position. However, the development essentially improves with the balanced situation with environmental aspects. In this context, the situation of effective opportunistic condition emphasized when the environmental and economical scenario overlapped with each other without any kind of contradictory aspects. Corporate consequences must be adhered along with the norms as well as regulations of the environmental issues to accomplish the projected goal of ultimate growth and development. In this context, from the literature review section, the study has depicted that the stagnancy of growth can be most harmful for the overall development of the country. In respect of this scenario, it highlighted that the utmost goal of the economy is maximization of GDP through consistent beneficial environment resources (OECD, 2012; Panayotou, 2003). From this similar context, interdependence of human economy along with natural ecosystem evaluated from the previous segment. Through which it can be inferred that for corporate the utilization environmental resources are most essential but over explosion of environmental resources might cause negative consequences as well. As an empirical example, the study has discussed the contradictory aspects of Tennessee River Case, wherein the Tennessee River Authority has constructed Tellico Dam and reservoir on the Tennessee River. From the economical perspective, the dam and reservoir construction project is one of the most beneficial aspects for the population of river belt and the political parties within the region. The Tennessee River Authority has depicted that the project has an opportunity for the population who are directly as well as indirectly associated with the Tennessee River belt (Plater, 2000).

From this instance, the situation pictured a positive scenario as per the economical consequences, but on the other hand, it is destructive for the water ecosystem of Tennessee River. From the previous discussed aspects, the study has illustrated that Tennessee River is the water body of several species, which are living in water and created a biomass. Snail Darter is one of these species, which is under the category of the endangered species. Now, the situation contradicted because the environmental act and the endangered species law restricted the construction of dam and reservoir on Tennessee River. This in turn created a barrier between the economical growths for the region. However, the environmental balance is also important factor for existence. In this context, from the several available literature resources and argumentative aspects, it can be highlighted that economic growth is important for the nation but existence of species and human is more important for environmental sustainability and accurate balance of nature (Murchison, 2007). Legal restrictions are also associated with the maintenance of the balanced condition of nature. According to the Endangered Species Act, law case was filed against the Tennessee River Authority. The major issues that highlighted in this case are associated with violence against the endangered species as well as the restriction for the halt of the dam and reservoir construction. From the perspective of nature and balanced condition of environment the scenario and outcome is appropriate for prioritizing the environmental issue than economic aspects of Tennessee River belt (Murchison, 2007). However, on the other hand, there might be numerous loss of capital investment occurred for the halt of the Tellico dam and reservoir’s construction. Thus, legal regulations and court also prioritize the environmental consequences rather than economical perspective. From this instance, it can be inferred that the injunction of the construction was the ideal remedy for protecting the environmental balance. Besides, the Tennessee River Authority was more careful regarding the construction aspects along with the environmental factors to evade such kind of unwanted scenarios, which halt the entire project as per legal terms and regulations.

Conclusions

From the above discussion, the study has revealed the interdependence between environment and economic aspects in order to maintain feasibility. In this context, the study has depicted that environment; legal regulations as well as economical factors are interconnected with each other in different manner. To gain an in-depth understanding regarding the stated matter, the study has been illustrated the case of Tellico Dam and Reservoir construction over the Tennessee Valley River. To evaluate the case scenario, it has depicted about the population of river belt, along with the biomass dependency of the Tennessee River. Apparently, at the time of biomass depiction, the study has emphasized the endangered species of river and harmful consequences of the dam and reservoir over them. In respect of this situation, the court suggested to halt the construction of dam and reservoir over the Tennessee River to protect the endangered species. This scenario analyzed through the several scholarly sources to enrich the argumentative perspectives of the study and gain an in-depth understanding regarding the contradictory aspect of Tennessee River Authority’s decision towards the construction of Tellico Dam and reservoir.