by Hilor Gulati
A major problem faced by the world as a whole is the issue of environmental degradation. With the rapid growth of economies and technology, this has increased, beginning to cause serious health hazards. In the middle of making our economies stronger, we somewhere ignored the place we live in. Economic and environmental performance are inextricably linked.
The natural environment is critical to economic activity and growth because it provides the resources we need to produce goods and services while also absorbing and digesting undesirable by-products like pollution and trash. Environmental assets aid in managing hazards to economic and social activity like flood management and climate management systems. Maintaining natural assets is a key ingredient for achieving growth and sustainability. Likewise, economic growth is important to develop new technologies and invest adequately in the protection of the environment. We often fail to notice that the natural environment plays a significant role in economic development, by directly providing raw materials like land, water, wood etc. E.g. land is used for cultivation, dairy farming etc. which have a large share in the economy.
Even though the two terms seem to be way distant from each other, environmental sustainability and economic growth are interlinked in many ways. On one hand, globalization has given an economic boost, it has also led to the degradation of the environment threatening its sustainability. The traditional economic theory proposes a trade-off between economic growth and environmental sustainability. Nonetheless, researchers based on the Environmental Kuznets Curve (EKC) suggest that there can be a positive relationship between the two. The EKC gives us a relationship between pollution and income levels, where pollution is just a part of the whole environmental issue. The EKC represents the empirical pattern of rising pollution level (and intensity) with rising income at relatively low levels of income per capita, but then reaching a maximum and falling thereafter.
A lot of environmental issues can be resolved if an effective public policy is introduced and implemented. A lot of pollution is caused due to economic activities however, it can be regulated by taking appropriate measures to reduce greenhouse gas emissions. While traditional policies focus on pollution control, they must be coupled with policy options that emphasize Eco-efficiency and environmental sustainability as part of the economic development process. Otherwise, most countries' economies will continue to worsen environmental sustainability.
Lastly, “If you think the economy is more important than the environment, try holding your breath whilst you count your money”- Dr Guy McPherson.