Question

In: Economics

A nations population size and the affluence of its citizens each influence its resource consumption and...

A nations population size and the affluence of its citizens each influence its resource consumption and environmental impact. As of 2019, the world’s population passed 7.76 billion, average per capita income was $15,415 per year, and the latest estimate for the worlds average ecological footprint is 2.8 hectares per person. The sampling of data in the table will allow you to explore patterns in how population, affluence, and environmental impact are related.

Nation

Population

(millions of people)

Affluence

(per capita income, in GNI PPP)

Personal impact

(per capita footprint, in ha/person)

Total impact

(national footprint, in millions of ha)

Belgium

11.3

$44,100

7.4

83.6

Brazil

206.1

$15,020

3.1

638.9

China

1378

$14,160

3.4

4685.2

Ethiopia

101.7

$1,620

1.0

101.7

India

1328.9

$6,020

1.2

1594.7

Japan

125.3

$38,870

5.0

626.5

Mexico

128.6

$17,150

2.9

372.9

Russia

144.3

$23,790

5.7

822.5

United States

323.9

$56,430

8.2

2656

  1. Calculate the total environmental impact (national ecological footprint) for each country. Multiply column 1 (population) by Personal Impact (column 3).`

  2. Which Country has the greatest IPAT? Why? Incorporate Population Size, Affluence and Footprint into your answer.

  3. Which Country has the lowest IPAT? Why? Incorporate Population Size, Affluence and Footprint into your answer.

  4. Compare Belgium and the US -both have the two highest Affluence, which are quite similar ($ 56K vs. $ 44K). The Personal Impact for both countries also is similar (8.2 vs. 7.4, respectively) yet the US has a population roughly 30x larger. In this example, what factor do you think (Affluence, Population size, or Personal Impact) carries the most weight in terms of influencing the Total National Impact/Ecological Footprint.

Solutions

Expert Solution

IPAT Equation (I) = Population * Affluence * Technology

Nation Population Affluence Personal impact Total impact
Belgium (millions of people) (per capita income, in GNI PPP) (per capita footprint, in ha/person) (national footprint, in millions of ha) IPAT
Brazil 206.1 $15,020 3.1 638.9 $9,596,428
China 1378 $14,160 3.4 4685.2 $66,342,432
Ethiopia 101.7 $1,620 1 101.7 $164,754
India 1328.9 $6,020 1.2 1594.7 $9,599,974
Japan 125.3 $38,870 5 626.5 $24,352,055
Mexico 128.6 $17,150 2.9 372.9 $6,395,921
Russia 144.3 $23,790 5.7 822.5 $19,567,513
United States 323.9 $56,430 8.2 2656 $149,876,951

United States has got the highest IPAT. The main contributing factor is 'Affluence' (per capita income) because economic activity is highest in United States. The increased per capita income leads to increased consumption, and new set of consumers originate.

Ethiopia has got the lowest IPAT. The reason being same again that per capita income; 'Affluence' is lowest in Ethiopia. The per capita income being low consumption will remain low and hence, level of economic activity will also be low.

Belgium and United States have got highest Affluence ($ 56K vs. $ 44K) and Personal Impact for both countries also is similar (8.2 vs. 7.4, respectively). Population size is larger in US because of Affluence that is, larger purchasing power creates demand for comforts and luxuries. After fulfilling the necessities, population makes demand for comforts and above that, demand for luxury goods for example, golf clubs. The increased demand leads to following of demonstration effect in the economy. People having low income starts moving into the countries having larger purchasing power and their standard of living rises and as a result, the population increases.Thus, population factor carries the most weight in influencing Total National Impact.


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