Effects of Economic acivity

Topics: Sustainability, Natural environment, Biodiversity Pages: 3 (556 words) Published: November 12, 2013
Environment - Economy Linkages
3. All economic activities either affect or are
affected by natural and environmental resources.
Activities such as extraction, processing,
manufacture, transpor t, consumption and
disposal change the stock of natural resources,
add stress to the environmental systems and
introduce wastes to environmental media.
Moreover, economic activities today affect the
stock of natural resources available for the future
and have inter-temporal welfare effects. From
this perspective, the productivity of an economic
system depends in part on the supply and quality
of natural and environmental resources.
4. Natural and environmental resources have
three economic roles : waste disposal services,
related to the environment’s assimilative capacity;
natural resource inputs into production; and
directly consumed life support services and
aesthetic amenities. The natural and
environmental resource input function is central
to understanding the relationship between
economic growth and environment. Water, soil,
air, biological, forest and fisheries resources are
productive assets, whose quality helps determine
the productivity of the economy. Focusing on
this role of environment as a producer good
highlights the direct effect environmental
problems have on economic growth. Thus,
economic management impacts on the
environment and the environmental quality
impacts on the efficient working of the economy.
Environmental degradation imposes costs on the
economy which results in output and human
capital losses.
5. Lost labour productivity resulting from ill
health, foregone crop output due to soil
degradation and erosion, lost fisheries output
and tourism receipts from coastal erosion or lost
soil productivity from deforestation can be some
of the manifestations of such reduced output.
Moreover, a growing body of epidemiological
studies suggest that air and water pollution are
taking a heavy toll, particularly of...
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