Protection of the environment Flashcards
How are taxes used to protect the environment?
Shifts supply curve to the left (decrease) illustrate w graph shows - higher price and decrease in quantity supplied
Taxes are imposed on those that damage the environment forcing them to meet the social cost e.g. landfill tax imposed on disposal of waste in landfill sites
Taxes increases costs which limits how much firms can produce - increases tax revenue, reduces emissions.
What is a direct tax?
Direct tax = levied directly on an individual/organization. E.g. income tax/corporation tax (paid from company’s profits to the Govt.)
What is indirect tax?
Indirect tax = levied on the purchase of goods and services - a tax on expenditure.
Specific tax – a fixed charge per good. Excise duties is a specific tax.
Ad Valorem tax – charged as a percentage of the price of the good. E.g. VAT
How does visual pollution damage the environment?
Business activity results in something physical that is unattractive.
Examples: smoke from factories, wind farms, giant office blocks and advertising billboards as well as litter which is significant
Effect: negative impact on well-being and reduces living standards
How does noise pollution damage the environment?
Noise pollution is the excessive noise that results from business activity
Examples: jet engines, heavy industrial machinery, vehicles, power tools, generators, music/loud conversations, commercial traffic
Effect: disturbance to everyday life - reduces their quality of life, negative impact on people (damage eardrums - loss of hearing) and wildlife, disrupt sleep patterns and raise stress levels.
How does air pollution damage the environment?
Factories, machines and vehicles that discharge emissions into the atmosphere are responsible for most of the world’s air pollution.
Burning of fossil fuels: Sulphur dioxide-acid rain and carbon dioxide contributes to global warming, which comes from burning fossil fuels such as coal/petroleum
Vehicle emissions: cause huge amounts of pollution
Emissions from factories and other business activities: Manufacturing and processing businesses, burning of waste, heavy manufacturing, power generation release high levels of carbon monoxide and chemicals which pollutes the air terribly
Agricultural activities:
Ammonia is a by-product of a range of agricultural activities and is one of the most dangerous gases in the atmosphere. Pesticides and fertilisers in farming are the main causes of air pollution in agriculture.
How does water pollution damage the environment?
Water pollution is the contamination of oceans, rivers, lakes, groundwater and other bodies of water by harmful substances. These substances find their way into the waterways as a result of business activity.
Industrial waste:
wastewater released still contain harmful substances and pollutes waterways
Marine/ocean dumping:
waste dumped from shipping, waste dumped from land into the sea
Sewerage:
illness from contaminated seawater and disposal of sewerage is released into the sea.
Effect: all marine life is threatened, water pollution responsible for the loss of species/habitats. Less access to clean water - millions of deaths due to water pollution
How are subsidies used to protect the environment?
Govt. grants can be given to producers to help lower the cost of production, and therefore lower price and increase the quantity supplied and consumption of a product and is a financial incentive for firms to ‘go green’
Given to firms to reduce harmful activities and those that generate positive externalities. Companies can also be given ‘tax allowances’ if they conform to environmentally friendly standards generate pos externalities
A subsidy lowers the cost of production and so supply shifts to the right. E.g. recycling, rail companies reduce congestion/carbon emissions, renewable energy orgs
How are fines used to protect the environment?
Fines are given to those who break environmental laws e.g. fines for littering on individuals
Many firms are responsive to financial penalties when imposed as it will reduce their profits.
In some cases, those that cause environmental damage are forced by the law to pay compensation to the victims.
How does the provision of parks protect the environment?
Governments establish national parks - very large areas of land where business development/ventures are illegal.
Aim to preserve and protect areas of natural beauty which may contain wildlife, historic sites and beautiful scenery.
AO3
protect wildlife and ecosystems
can be used for recreational purposes - children play which increases positive externalities -
depending on size - bring in tourism revenue - restaurants/stores - welcomes visitors
Parks can host concerts/festivals boosts the local economy
AO4 depends on use of park maintenance costs government opportuntiy cost - increase output/creates jobs other ways to reduce pollution
How does regulation protect the environment?
A range of legislation, regulations, guidelines and codes of practice exist in many countries which is designed to protect the environment.
The threat of the government law dissuades companies and individuals from acting in a way that may harm the environment, in fear of suffering from financial or political consequences.
What are the different business activities that harm the environment?
Mining: tailings left behind, destroy wildlife habitats, pollute waterways
Power Generation: burning fossil fuels-global warming/acid rain, visual pollution, noise pollution, nuclear power - radioactive waste very difficult to dispose of - buried underground thousands of years to be safe
Agriculture: Pesticides/fertilisers kill aquatic life may cause illness to humans, factory farming generates methane 37%-global warming, deforestation - global warming
Construction: produces more waste than any other industry - uses up resources and causes disposal problems. Air pollution and water pollution.
Chemical processing: important in everyday life yet can be very harmful to humans e.g. cancer and releases volatile organic compounds into the atmosphere.
Most business activity negatively impacts the environment e.g. through the use of electricity and produces waste - emissions/landfill sites also problematic
