Question

Explain the economic, social and environmental impacts of pollution and damage to the vital field and depletion of natural resources, whether renewable or non-renewable?

Answer 1

Cognitively, pollution impairs functioning and decision-making. Economically, it hurts work productivity. And socially, it exacerbates criminal behavior.

The link between Economics and natural science economic analysis can be an effective tool for comparing the costs and benefits of alternative resource or environmental management policy actions. When correctly formulated, such economic analyses can be useful in estimating the monetary values of vegetation and other receptor losses from air pollution or the welfare consequences of air pollution reductions. Economic assessments of air pollution damages typically start with biological information on observed or inferred vegetation quality and/or yield losses for alternative air quality levels. The economic loss or benefit associated with that biological response is then calculated based on the behavior of economic agents as reflected in market information (prices).

Increasing economic growth and energy demand will lead to a significant increase in global emissions of air pollutants.Rising emissions, together with other factors, such as climate change, will lead to increasing concentrations of particulate matter (PM2.5) and ground level ozone

• Increasing concentrations of PM2.5 and ozone will lead to substantial effects on health and the environment. In particular, premature deaths from outdoor air pollution in 2010 amounted to around 3 million people, while they are projected to be 6-9 million in 2060.
• The market impacts of outdoor air pollution are projected to lead to global economic costs that gradually increase to 1% of global GDP by 2060. Costs related to additional health expenditures and labour productivity losses dominate in the long run.
• The annual global welfare (non-market) costs of these premature deaths from outdoor air pollution, calculated using estimates of the individual willingness-to-pay to reduce the risk of premature death, are projected to be USD 18-25 trillion in 2060. In addition, the costs of pain and suffering from illness are estimated at estimated at around USD 2.2 trillion by 2060.

Reducing air pollution would lead to significant benefits to the socio economic well-being. Reduction in illness and mortality may have direct social benefits and also improve the productivity of the industries and decrease health care costs.

Air pollution corrupts not only the health of individuals, but also the health of society. According to Lu’s research, air pollution has critical economic and social implications. Some research suggests that air pollution reduces work productivity in two critical ways. First, it increases absenteeism: Even moderate levels of pollution reduce the working hours of adults, likely because of their sickness or need to care for small children and the elderly. And second, it decreases individual employee productivity when workers are on the job.

Research also shows that air pollution is associated with increased criminal and unethical behavior. In a study that analyzed a nine-year panel of 9,360 U.S. cities, air pollution positively predicted both violent crimes (murder, rape, robbery, and assault) and property crimes (burglary and motor vehicle theft).

Air pollution impairs decision-making abilities. For example, professional baseball umpires are more likely to make incorrect calls when ambient air pollutants are at high levels. Another recent study found that air pollution intensifies the disposition bias, or investors’ tendency to sell winning assets while retaining failing assets.

A nation’s economic growth can contribute to several different kinds of pollution, affecting health and motivating policymaking decisions.

The point is not to dispute the quantity of pollution, nor is it to argue about the effects of pollution on people’s health or the climate. “Instead, it is suggested that the costs of pollution should be assessed relative to the benefit of said economic activity. If both economic activity and pollution are rising, one ought to ask whether the costs are rising faster than the benefit...or the opposite.”