climate change on the environment
With booming industrial growth in contemporary society, environmental sustainability remains one of the hotly debated topics around the world due to the ever-increasing economic activities on the environment. Noteworthy, the successful adoption of green approaches continues to offer sustainable solutions to environmental pollution through the eco-industrial network. The current industrial pollution affects the balance of the ecosystem, calling for the implementation of sustainable solutions to curb the effect of climate change on the environment.
Positive Externalities
The natural environment plays an essential role in economic growth. In particular, it provides the vital resources needed to produce goods and services to match the ever-increasing demand around the world due to rapid population growth. Similarly, the current economic activities help to process and absorbing unwanted by-products that could pollute the environment. The current economic climate regulates climate, thus maintain air quality and recommended temperatures. It also supports the water, minerals, and other resources aimed to boost industrialization. In other words, the economic environment encourages sustainable growth to enhance social welfare or wellbeing in the longer term.
The industrialization has resulted in the invention and deployment of new technology aimed to manage natural assets at the same time, enhancing the productive capacity of the environmental assets. As a result, many governments around the world continue to maintain biodiversity and water resources to tackle dangerous climate change. The economic downturn and recovery enable policymakers to adopt a sustainable growth path aimed to shape the future economy. The invention of new infrastructure and technologies helps encourage the shift to efficient sources of energy while reducing the emission of greenhouse gas into the environment. Economic growth continues to inspire both developed and developing economies to improve the air quality of their citizens.
Today, economic policies focus on improving the efficiency of businesses. As a result, many firms consider not only the environmental benefits of efficient use of resources but also financial savings associated with such technologies. The adoption of low-cost measures ensures resource-efficiency to help regulate energy and water use as well as reducing the amount of waste generated from production activities. The new technologies replace the combustion of fossil fuels to produce electricity and other forms of energy. Renewable sources of heat help mitigate environmental pollution, global warming, and damage to public health. In this regard, renewable technologies have significant social benefits in power production. For instance, the construction of wind turbines continues to reduce reliance on fossil fuels.
Negative Externalities
Today’s economic environment continues to exploit natural capital around the world. It is vital to note that changes to environmental assets are irreversible, something that affects many generations. The rapid consumption of the rate of both renewable and non-renewable resources such as forests, fisheries, oil, and minerals, may result in the depletion of such assets from the atmosphere. For instance, deforestation adversely affects biodiversity and carbon sequestration, exposing the world to climate change and global warming. The depletion of minerals, metals, and other natural assets does not reflect the real costs of environmental resources. However, the contemporary economic environment takes into consideration the scarcity and substitutability of such capital.
The degradation of the environment and depletion of natural resources are the leading shortcomings of the current economic climate. Increased human activities around the world have resulted in the emission of greenhouse gas, such as carbon dioxide into the environment. As a result, the world continues to witness unprecedented rates of climate change and global temperatures due to rapid industrialization. The fast production of economic output results in pollution and environmental deterioration. The current economic environment encourages the consumption of substitutes for the diminishing resource, something that generates a further degradation of natural resources, consequently leading to a self-feeding growth process.