economic growth and the environment
Introduction
Some economists believe that economic growth provides a basis on which sustained environmental improvements can and often do occur.
The Kuznets Curve suggests a bell-shaped relationship between the concentration of certain pollution emissions and per-capita real GDP. As lower-income countries industrialize, intensive burning of relatively dirty fossil fuels initially fuels production and consumption and causes some of the world's worst urban air pollution in low-income countries (ELDC's). As per capita incomes rise, a share of the new wealth can be used to buy cleaner fuels like natural gas and to develop more energy-efficient technologies
There are other ways in which a rise in per capita national income can protect the environment.
Higher real household incomes are associated with lower fertility rates which has an impact on the natural rate of population growth and the ever-increasing claims that population growth makes on the world’s scarce resources. Richer countries also have the resources to devote to public and private sector research and development.
The positive spill-over effects of R&D might include the development of cleaner and less resource-intensive production technologies, more fuel efficient and less-polluting fuels and improved energy efficiency in homes & businesses.
What is Sustainable Economic Development?
In 1987 the World Commission on Environment and Development defined sustainable development as:
"development that meets the needs of the present without compromising the ability of future generations to meet their own needs"
The current UK Government supports the concept of sustainable development and focuses on four main objectives set out below:
(1) Social progress which recognises the needs of everyone: Everyone should share in the benefits of increased prosperity and a clean and safe environment. Our needs must not be met by treating others, including future generations and people elsewhere in the world, unfairly.
(2) Effective protection of the environment: We must limit global environmental threats, such as climate change; to protect human health and safety from hazards such as poor air quality and toxic chemicals; and to protect things which people need or value, such as wildlife, landscapes and historic buildings.
(3) Prudent use of natural resources: We need to make sure that non-renewable resources are used efficiently and that alternatives are developed to replace them in due course. Renewable resources, such as water, should be used in ways that do not endanger the resource or cause serious damage or pollution.
(4) Maintenance of high and stable levels of economic growth and employment, so that everyone can share in high living standards and greater job opportunities. The UK is a trading nation in a rapidly changing world. For our country to prosper, our businesses must produce the high quality goods and services that consumers throughout the world want, at prices they are prepared to pay.
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