Topic III. SCOPE OF ENVIRONMENTAL IN INTERNATIONAL ECONOMICS
III.0 Introduction
The environment
becomes one of the major concerns to the present economy because of the
activities of man. The relationships between man and environment have been
changing along the development process from generation to generation.
Economists are concerned with increasing demand of resources and its
implication on the natural environment, the environment provides food shelter,
clothing, medicine, raw materials and other resources.
International Economics
is concerned with making best allocation of resources among competing
alternatives; it is concerned with utilization of resources to ensure an
improvement in welfare. There is a strong link between the environment and
economics, humanity are faced with a lot of environmental problems which have
International economic dimensions.
Environmental in
International Economics is that aspect of economics that deals with the
interrelationships between the environment and International economic development, it studies the ways by which a balance is stroked
between the two, and it is also concerned with how the damage done can come to
a halt or reversed.
III.1 Scope of Environmental in International Economics
To strike a
balance between economic growth and the environment
Pollution
control from economic point of view
The nature of
consumption and utilization of resources as they are being depleted, therefore
optimal use with minimal level of wastage is needed
Limits to growth as growth must be controlled
through taxes and other fiscal
Measures to make it optimal
III I.1.1 Relationship between Environment and the
International Economy
Since the
environment provides resources for economic activities, all economies should
therefore be concerned with the following basic objectives, they are;
- Efficiency in the utilization of
resources
- Equity in terms of distribution of
income and resources as well as compensations
- Stability, such that taxes,
charges and other control measures should not be too high to
discourage/reduce output
- Growth, all economies aim at
sustainable economic growth
III.1.2 Man and Environment
The evolution
and process of human civilization is a story of man in his struggles against
nature man has to subject nature to satisfy his wants because he needs basic
necessities of life and in his attempt to satisfy them, he not only conquers
the immediate environment but jeopardizes the future of the next generation to
come. This interrelationship is presented below;
III.1.3 Environmental Factors:
Land, Climate,
Vegetation, Minerals, Water, Atmosphere and etc.
Human Factors:
Demography, Economy and Culture
Technology
Use of Natural
Environment
The Environment
Changes
Feedback and
Alteration
From
the analysis above, one can see how the environment provides land, climate,
forests, water bodies and other assets. Human factors inform of demography,
culture and economy used technology to decide on how to use the assets provided
by the environment and in so doing, the environment changes and the feedback is
that it is altered from its natural formation.
III.1.4 Environmental Economics and Traditional Economics
Similarities and differences between Traditional
Economics and Environmental Economics
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Traditional Economics
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Environmental Economics
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III.1.5 Environment and International Relations
Is a sub-field of economics that is concerned with environmental issues. Quoting from the National
Bureau of Economic Research
Environmental Economics program:
Environmental economics
is distinguished from ecological economics in that ecological economics emphasizes the
economy as a subsystem of the ecosystem with its focus upon preserving natural capital.
Environment: The 'biotic environment is the biotic and abiotic surrounding of an organism or population, and consequently
includes the factors that have an influence in their survival, development and
evolution.
Whereas the expression "the environment" is often used to refer to the global
environment, usually in relation to humanity, the number of biophysical
environments is countless, given that it is always possible to consider an
additional living organism that has its own environment.
Natural
environment including natural resources provides several goods, services and
amenities to human beings and performs many important functions in the process
of economic growth. Two of the important functions are: provision of inputs to
production processes and assimilating the wastes generated in the process of
production and consumption
Biosphere/
Environment
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Provides inputs for
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Economic
growth, production of goods and services
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Absorbs
wastes generated in the process of economic growth
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II.1.6 Environmental degradation and International Relations
is the deterioration of the
environment
through depletion of resources such as air, water and soil; the destruction of ecosystems and the extinction of wildlife. It is defined as any change or disturbance to the
environment perceived to be deleterious or undesirable. As indicated by the
I=PAT equation, environmental impact (I) or degradation is
caused by the combination of an already very large and increasing human
population (P), continually increasing economic growth or per capita affluence
(A), and the application of resource depleting and polluting technology (T).
Land
degradation:
undermines land productivity and poses a risk to food security, impacts on the quality of ecosystem services, deforestation
and soil degradation contribute to climate change, Green
Growth requires integrative approaches to land-use, focused on increasing
productivity and food-security, while minimizing degradation of Africa’s
natural assets.
III.1.6.1 Land degradation affects large parts of Africa.
III.1.6.2 Economic resilience in a globalized world
Globalization provides new opportunities, but also creates new risks
through increasing inter-dependence.
Increasing resilience to exogenous
economic shocks is critical, as African economies move forward
III.1.6.3 Changes in world price are for key African agriculture exports
during 2012.
African livelihoods and
economies are heavily dependent on agriculture. Increasing integration into
world markets provides opportunities for growth but also increasing exposure to
market price fluctuations.
Source: AfDB
III.1.6.4 Some cases economic loses
around the World
Between
July 2011 and mid-2012, a severe drought affected the entire East Africa
region. Said to be "the worst in 60 years", the drought caused a
severe food crisis across Somalia, Djibouti, Ethiopia and Kenya that
threatened the livelihood of 9.5 million people
III.1.6.1
Water deterioration in International Economics
One
major component of environmental degradation is the depletion of the resource
of fresh water on Earth. Approximately only 2.5% of all of the water on Earth
is fresh water, with the rest being salt water. 69% of the fresh water is
frozen in ice caps located on Antarctica and Greenland, so only 30% of the 2.5% of
fresh water is available for consumption. Fresh water is an exceptionally
important resource, since life on Earth is ultimately dependent on it.
The
current top three uses of fresh water account for 95% of its consumption;
approximately 85% is used for irrigation of farmland, golf courses, and parks, 6% is used for domestic
purposes such as indoor bathing uses and outdoor garden and lawn use, and 4% is
used for industrial purposes such as processing, washing, and cooling in
manufacturing centers. Water scarcity is an increasing problem due to many
foreseen issues in the future, including population growth, increased
urbanization, higher standards of living, and climate change.
Inyange industry investment in Masaka Sector,
threatened by uncontrollable floods
Kigali: currently (2013-2014)
III.1.6.2
Climate change and temperature in International Economics
Climate change affects the Earth’s water supply in a large number of ways. It is
predicted that the mean global temperature will rise in the coming years due to
a number of forces affecting the climate, the amount of
Author Prof. Dr. Rugema D. Muyombano
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