The Long-Term Shift in Weather Statistics - Essay Example

Economics of Environment Introduction Climatic change refers to the long term shift in weather statistics. The changes are caused by natural variability due to the interactions within the atmosphere like changes in solar radiation. Also, the human induced changes like greenhouse gases release carbon dioxide and water vapour which trap heat within the atmosphere yielding the greenhouse effect. There are various effects of climatic change, and research is still in progress to determine the extent of occurrence of climatic change and the potential impacts (Copeland and Scott 7-71). The pollution of ozone contributes to changes in climate. Pollutants causing the creation of ozone include volatile compounds and nitrogen oxides that come from industries. Once the pollutants are in the atmosphere, ozone, which is a potent greenhouse gas, is formed. The impact of ozone cannot be underestimated. Plants are animal life are destroyed since ozone reduces the rate of photosynthesis. As a result, the atmosphere will contain too much carbon dioxide. The effects of different pollutants to climatic change vary. For instance, the carbon dioxide emission lasts for a long time in the atmosphere, and ozone lasts for a very short time (Boyce 105-28). Millennium Development Goals and Poverty Eradication Statistics indicate that number of people living in extreme poverty has risen at an enhanced rate than the increase in income levels. Despite the impressive economic growth rates, some countries like Asia Pacific have not been able to reduce poverty. However, some countries like East Asia have grown and transformed economically. Ironically, the largest people living in poverty are found in these regions. South Asia, particularly, is the poorest in the world. Most people in these areas lack access to sanitation, education and the basic needs. The increased poverty goes hand in hand with the global inequality. In mid 20th century, international community responded to the issue of poverty by enhancing the structural adjustment, post-war reconstruction and campaigns for equality in economic growth (Fenwick et al.1029-030). Cost Benefit Analysis The cost benefit analysis involves compiling the costs and benefits of a project, and translating them to monetary terms then discounting them over time. This enhances the determination of the present value for future costs and benefits. Projects with more benefits than costs are the ones that are accepted. The environmental benefits are unavailable, yet the costs remain known. This is controversial when determining what to measure and the values being measured. The economic analysis requires a good understanding of the effects of the project (Pimentel 229-52). Taking the cost analysis of the Millennium Development Goals in poverty eradication, there are different strategies that have been put established to enhance poverty reduction. In the end of 20th century, the international community adopted a poverty reduction programme. The Millennium Declaration by General Assembly was later known as Millennium Development Goals after the targets and goals were refined. The, Dimensions, Nature and Manifestations of Poverty Actual experiences of farmers, workers, minority communities and NGOs indicate that poverty is entrenched in various ways, like inaccessibility to essential services e.g. water and healthcare. As a result, this contradicts with the stated goals of eliminating poverty. The policies and strategies by regional banks and creditors contradict the conventions by the UN on human rights and development (Fenwick et al.1029-030). The resources in various communities are under stress. The pressure of producing goods on a large scale, the liberalization and deregulation, and the poor implementation of the reforms programmes in the agricultural sector has led to the decrease in agricultural activities. The climatic change has direct impacts to the lives and livelihoods of people and is highlighted by the Millennium Development Goals. Most of these changes in climate result from direct human activities such as deforestation and increased emission of green house gases that result to unpredictable seasons, falling glaciers, die-back of rainforests and many other impacts that directly affect the human economic activities (Gilbert 67). Despite of the close relationship between poverty reduction and Millennium Development Goals, the two are not synonymous. Reducing poverty does not reduce the impacts on climatic change. Similarly, some adaptation policies on climate do not reduce poverty. Economic growth is an essential driver in attaining the Millennium Development Goals. This contrasts the Millennium Declaration of halving the world poverty. Growth models from the industrialized countries strain the environmental boundaries and are not scalable to the developing countries. In order to pursue a strategy that is growth-centred without accounting for the environmental boundaries, then one has to ignore the limits of future model and the current development modulus on linear production chain; ranging from uncontrolled raw material extraction to disposal in the environment. The environmental-unsustainable economy disproportionately affects the poor simply because of their dependence on scarce and overstrained capital (Homer et al. 57). Market approaches to environmental conservation Some policies on environmental conservation include the Endangered Species Act, ESA, of 1998, which forms an extremely critical conservation pillar in United State. Despite of the controversy associated with the Act, most of it arises from the nature of command and control. The act is based on central mechanism of listing the endangered species. Any species listed as endangered is protected to ensure no further threats. The Act calls for even the prevention of the land use if the effects to the endangered species are negative. This prevents land use and prohibits any development that can affect the animals. This places the conservation costs on the land owner. ESA is based on command and control legislation. Economically, the incentive to conserve the endangered species could have been central. Owners would have used this as a source of income (Boyce 105-28). The mitigation banking was introduced alongside the Clean Water act of 1977. According to the Act, developers use the threatened habitat on condition that they mitigate through conserving in perpetuity of compensating amount of the equivalent capital elsewhere. Compensation can be one to one basis. Creation of equivalent conserved land more than the immediate requirement for selling in the future to other people to mitigate is referred as mitigation banking (Boyce 105-28). Environmental Economics and Policies The environmental concern is as a result of coincidence of the high population density and income. If there were only few people in the world, the earth’s environment would have been able to absorb the wastes that are thrown into it. Demand for the environmental quality is considered as income elastic. As a result, there are high environmental damage levels, which is dominant in developing countries. The high income groups treat the environment as a luxury good. The poor and marginalized groups consider the environment as perennial source of shelter and food. The concern for the environment is central in their daily activities. However, since their main concern is food, then the environment issues are neglected. The poor people suffer the most the environmental damage. The third world countries consider the poor as creators of the environmental damage due to the high population in such economies. The leaders in third world countries consider that environmental pollution is as a result of the overuse of resources to meet the requirements for the rich West (Boyce 105-28). There is a positive correlation between the environmental quality demand and the income. The high demand for environmental quality results to high levels of damage to the environment. As the income increase, the environmental damages also increase. This is not the case in developed economies where high levels of income results in high promotion and protection of the environment. However, this is not always true. The substantial growth of the rich nations increases the dependency on the developing countries for the resources. In the dependent economies, the levels of environmental damages will be exceptionally high. The socio-economic reasons and both external and internal factors constrain nations to accommodate the economic principles while valuing the resources (Copeland and Scott 7-71). The environmental economics is critical in assigning the true costs to the popularisation of the environmental management and the scarce resources. Separate policies on the environment are required to address these issues. For instance, India has several laws on environment. Solving of the environmental issues and averting the regional and the local threats, suitable policy on the environment is crucial. The state and the central governments should declare the environmental policies to minimize the extent and level of environment destruction. The traditional government programs on environmental quality and pollution control contributes to the internal corporate barriers through focussing on the end results (Copeland and Scott 7-71). Role of Government and Markets in Delivering a Transition to Low Carbon Economy The transition to a low carbon economy entails management of the depletant resources in allocating capital when transitioning to renewable alternatives. This takes into consideration how fast the existing resource is used, and how much should be preserved for future generation (Cranston and Hammond 89). The government in UK has played a significant role in promoting a low carbon economy. The Act in 2008 on climatic change legally bound the carbon budget and enhanced reduction in harmful emissions, like carbon dioxide by 34%. The Act also outlined the investment in clean energy technologies and the high energy efficiencies. The investments entail expansion of renewable, carbon capture and nuclear energy, and reduction of the dependency in fossil fuels. Currently, there has been a 25% reduction in emissions. The 2012 carbon plan highlights on the government strategies in ensuring low carbon emissions. The strategies include; constraining the greenhouse gas emission to prevent impacts on the climate, and the energy security to ensure resilient prices for energy supplies and volatile fossil fuels. The strategies are accomplished by adopting a cost effective method, diverse portfolio in technology, and protection against barriers to investment and market failures. Costs should be divided fairly to avoid negative effects of the transition to the consumers (McEvoy et al. 27-38). Trade schemes have covered over 70% of the emission from the industrial sector, and this plays a crucial role in regulating the carbon price to incentivise on developments that promote low carbon emissions. The incentives increase the share in electricity generation. The renewable obligations are phased out and long-term contracts put in place. Government and markets have enhanced de-carbonisation by supporting infrastructure and the new technologies as well as helping consumers overcome barriers related to low carbon choice. Also, the energy suppliers are secured through ensuring that the climate is conducive for the new investments that are aimed at enhancing a low carbon infrastructure (McEvoy et al. 27-38). The recognition of low carbon economy by the government and markets has enabled them put into place policies that enhance innovation, and incentive oriented investment in low carbon energy generation and the efficiencies. The government is involved in positioning Britain as the global leader in design, manufacturing and use of the ultra low emission vehicles that have £400 provision throughout the lifetime of the parliament (Kolstad 3-20). The transition to low carbon economy entails careful measures so as not to undermine competitiveness of other industries in UK. A green economy is wholly compatible with efficient and competitive manufacturing industry. The industries that are energy intensive have high accountability of providing several components for the low carbon goods. Cement, high-tech textiles and steel companies are in the supply chain for the wind turbines. Since energy entails large proportion of the costs, such industries have been in the forefront towards maintenance of high energy efficiencies. Alongside this opportunity are the challenges. The policies put into place by the government for support of the low carbon raises the price for other energies such as electricity. The impact of these transitional costs has a real impact on short to medium term basis. It is estimated that policies on energy and climatic change represent 28% of the electricity costs by these companies (Kolstad 3-20). Most of the energy intensive industries operate within a highly competitive global market which has limited capabilities of passing on the increased costs, and this means that increased costs affect an industrys profitability and the capability to invest in UK. This in return causes the loss of job opportunities with closure of such companies. However, goods might be imported from low-energy efficiency standards countries, and this would increase the overall carbon emission. Fate of low carbon economy is dependent on the economic decision makers. The global demand in fossil fuels in increasing and the international recognition of carbon impact on climate are changing the market dynamics. Securing the future energy calls for the provision of the right environment at homes and the right investment in the energy technologies and infrastructure by the government. The continued investment in infrastructure maintains the access and distribution of the supplies for fuel during and after low carbon transition. The global investment in cleaner and low carbon energies enhances the future security in climate and energy (Pimentel 229-52). The renewable energy sources are critical in enhancing the low carbon. These include second and third generation biofuels, wind and marine energy. The nuclear power provides steady low carbon base-load without intermittency risks. The coalition between government and the markets in UK ensures competitive production of electricity. The collaboration with International Atomic Energy Authority enhances the energy security, as well as boosting low carbon economy that provides job opportunities both at local and international level. The government has deployed the Carbon Capture and Storage (CCS) that is critical in reducing the carbon dioxide gas emission from power stations. Works Cited Boyce, J. K. "Green and Brown? Globalization and the Environment." Oxford Review of Economic Policy 20.1 (2004): 105-28. Print. Copeland, Brian, and Scott Taylor. "Trade, Growth, and the Environment." Journal of Economic Literature 42.1 (2004): 7-71. Print. Kolstad, Charles. Environmental Economics. New York: Oxford UP, 2000. Print. Muthukrishnan, Subhashini. Economics of Environment. New Delhi: PHI Learning, 2010. Print. Pimentel, David. "‘Environmental and Economic Costs of the Application of Pesticides Primarily in the United States’." Environment, Development and Sustainability 7.2 (2005): 229-52. Print. Pimentel, David, Paul Hepperly, James Hanson, David Douds, and Rita Seidel. "Environmental, Energetic, and Economic Comparisons of Organic and Conventional Farming Systems." BioScience 55.7 (2005): 573. Print. Cranston, G.R., and G.P. Hammond. "North and South: Regional Footprints on the Transition Pathway towards a Low Carbon, Global Economy." Applied Energy (2009): n. pag. Print. Fenwick, A., D. Molyneux, and V. Nantulya. "Achieving the Millennium Development Goals." The Lancet 365.9464 (2005): 1029-030. Print. Gilbert, Natasha. "Millenium Development Goals under Scrutiny." Nature (2008): n. pag. Print. Homer, Caroline S.E., Elizabeth Hanna, and Anthony J. McMichael. "Climate Change Threatens the Achievement of the Millennium Development Goal for Maternal Health." Midwifery (2009): n. pag. Print. McEvoy, D., D.C. Gibbs, and J.W.S. Longhurst. "The Employment Implications of a Low-carbon Economy." Sustainable Development 8.1 (2000): 27-38. Print. Read More