Question

Discuss the role of economics in the debate regarding the way we should interact with the environment. Your answer should demonstrate a clear understanding of the issues presented in the text. Be as clear and detailed as you can.

Answer 1

ROLE OF ECONOMICS IN THE DEBATE REGARDING THE WAY SHOULD INTERACT WITH THE ENVIRONMENT:

Those factors which effect the commercial and consumer behaviour are known as economic environment. The economic environment is related to all the external factors. These factors can affect the business that is how it operates and how it will be successful. Economic environment considered different mode or things for different people. For illustrate, price of fertilizers and weather for farmer are important factors on the other hand growth of internet advertisements is important for TV channel, here weather does not matter.

The environment and the economy are linked intrinsically. At the time of production and consumption analysis, environmental issues rapidly considered. Modern world demanded green production and consumption .fiscal policies of economic tools are discussed under the context of environment. There are basically three factors of production: natural, human and physical factors. in this those factors which are directly related to the environment are called as natural factors .

The resources of environment, their allocation and the utilization are related in the economic cost benefit context. The profit and loss, equilibrium of environment resources, demand and supply all are analysed under the economic context. There are various theory of environment which have integrate with economic theories. These include sustainable environment development environment, planning of resources, input -0output model, environmental policies, environmental budgeting and fiscal analyse etc.

The nature of environmental problems man made basically and economics has solution for them. Utilization of natural resources should not be over so we should develop some of basic standards for utilization of natural resources.

There are economic causes for environmental issues and environmental cause for economic issues. There are environmental solutions for economics problem and economic solutions for environmental problems. The development of economy basically depends upon natural resources of environment such as: land m, air, oil, minerals, forest, water, coal, and so many others.

So we can say that the economy interact by the environment.