The Ecological Environment

Question 1

Ecological problem

Answer 1

energy supplies currently depend on
- The nature of production processes now results in pollution and ecological damage
- Resource depletion – impacts food supply, water availability, energy
- Social costs/ negative externalities – occur as a result of production or consumption of goods/services – but for which no individual/organisation pays for
- Simplest solution – devise a way where the agents are responsible for their pollution – internalizing the externality
o However critics say this may encourage the belief that the problem is solved even though the environmental damage still exists
o Key concern is that businesses will operate as usual.
o Others argue that given the right incentives businesses will choose to go green

Question 2

Perspectives on role of business

Answer 2

• Views from the right
  o Free market – it is the ability of private businesses to operate in markets free from government regulation that will drive economic progress
  o Indirect cost of growth is environmental damage – trade off to be made between this and growth in living standards
• Views from the left
  o Businesses have a vested interest in encouraging consumers to buy more so are indirectly responsible for impacts
  o They argue that businesses are just responded to consumer demands
• Green view
  o Need to move away from anthropocentric view of world which sees humans as driving force of nature and sole beneficiary of resources – to an ecocentric view that recognizes our interdependence with nature

Question 3

Environmental regulation

Answer 3

• In 20th century, it became accepted that business activity needed to be regulated in order to protect natural environment and that government would have to take direct control over a range of environmental areas
• Need to have environmental standards linked to trading agrees
• Benefits: Reduce cost of waste, energy consumption savings, improved corporate image

Question 4

Global issues

Answer 4

• Desertification, deforestation, loss of biodiversity, whaling, protection of ozone layer, climate change
• For effective action to be undertaken – it is important to devise a system of international cooperation to develop a regime
• Multilateral treaties are required and these may be regulated either through a commitment of organisations or a conventional process – agree on framework and identify ways to deal with problems
• Risk and uncertainty – Environmental policy requires people and organisational to change their behaviour in relation to resource use so we recognise social costs of damage
• Major barrier is our lack of knowledge of what our ecological impact is /how to minimize
• Effects of climate change
  o Unique and threatened ecosystems – increasing temperatures
  o Extreme weather events – prolonged droughts, heat waves, floods
  o Distribution of impacts – most vulnerable in weakest economic position