Module IV
ENVIRONMENT AND ECONOMICS

As an extension of 'environmental crisis' this module group out the causes of such cases and methods to control it. First of all there is need to identify the natural endowments / resources of a nation and categorize them into renewable and non-renewable resources. The rate of use of these resources makes up the total social cost to any nation. If the rate of usage is greater then the 'social cost' or 'royalty' is very high. This then leads to depletion of a resources as well as pollution.

Therefore each nation needs to carry out a social cost benefit analysis to weigh the pros and cons of over- utilization of resources for faster rate of growing and development. An equilibrium level of resource utilization keeps pollution under control. Various methods of pollution control have been discussed in this module. All these measures would lead to sustainable development or ‘growth with stability’.


Environmental Crisis

Environmental crisis is global phenomenon. More recently there has been major over the environment protection and environmental development. The rapid economic development, Technological and scientific advancements have increased their impact on the natural environment. They have added to the environmental degradation and ecological imbalances. Increasing damage to the environment and ecological imbalance has created a fear in the mind of developing and developed countries. In this direction the Stockholm Conference in 1972 is a significant landmark which emphasized how to deal with the myriad aspects of the environment. After the conference all the countries made environmental protection enactments on various aspects from time to time.

  • Protection of Environment (Link to be created, Dogra, 1998)

State of environment in developed and developing countries

National and International Initiatives, Global Network, Issues at UNCED, Ways of Cutting Bio-diversity Losses, Wildlife Conservation and Eco-Development of Sanctuaries, Local Sharing of some of the issues in the Non-use Values of Biodiversity, Sustainable Use of Bio-diversity, Situ Conservation relates to Research and Training, Free Exchange of Germplasm, Initiatives on the follow-up of the Convention on Biological Divesity, Identification of Action Points, and Transfer of Genetic Resources, Ratification of the Convention.

The Genetic Revolution is related to, The Colonization of Human Regeneration, The Colonization of Plant Regeneration, Food Crises, Biotechnology and the Third World, United Nations Efforts, Fewer Varieties, Narrowing the Genetic Base, Intense Farming, Access to Seeds, Gene Bank, What are Genetically Engineered Foods ?, Breeding Uniformity, Jurassic Park is Science Fiction, BST : Biotech and Cows, Soybean Drought Resistant Crop, Corn Fever, The Seed, Corporate Control of the Seed Industry, Who Controls the Seeds ?, Women, Ecology and Biotechnology, Genesis, Fewer Crops, A Roulette-Wheel for Farmers, Third World Strategies to Reverse the Trends, Program Areas : Increasing the Availability of Food, Feed and Renewable Raw Materials, Basis for Action, Objective, Data and Information, International and Regional Co-operation and Co-ordination, Means of Implementation, Financing and Cost Evaluation, Improving Human Health, Basis for Action, Objectives, Activities, Management-Related Activities, Data and Information, International and Regional Cooperation and Co-ordination.


NATURAL RESOURCE ECONOMICS
Natural resources are generally divided into different parts depending on the time scale related to their use. They are -
  1. Expandable or constant flow resources.
  2. Renewable resources.
  3. Depletable or exhaustible resources.

Expandable (Continuous flow) Resources: - The main feature is that use at one particular point of time will not affect the amount that can be used in the future and exhibit continuous flows, through time. Agricultural products, solar radiation and the waves in the tides, the ability of the environment to absorb non-persistent pollution etc may be assumed as examples.

Renewable Resources: - The essential feature of renewable resources is that they can be increased as well as decreased. It will increase if the stock is allowed to regenerate. However, there is a maximum stock: no renewable resource can regenerate to the levels above the carrying capacity of the ecosystem in which it exists. An obvious example of this kind of resources is a forest or a single species of fish. Use of such resources today usually affects future utilization possibilities. This means that the rational utilization policy must take into account the time dimension during which the resources are regenerated. Biologically regenerating resources are often characterized by emphasizing that they are ‘renewable but exhaustible’. This refers to minimum variable population size. Harvesting a population smaller in size or harvesting over and above its potential only causes 'extinction' (i.e. if the rate of harvest exceeds the natural growth of the resources).

Non-renewable Resources
: - In this case the inter-temporal sum of the services provided by a given stock of exhaustible resources is finite. This definition highlights the importance of the long term perspective. The resource will be depleted so long as the use rate and the harvest rate is positive. The central economic problem of these resources is thus how to allocate their fixed amount inter temporally that is between different points over time or between different generations.

Table 1 shows example of all these three kinds of natural resources. Among these three kinds of natural resources we will now concentrate over optimal use of renewal resources.