Green Economics

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Green economics
In the 20th century rapid economic development has resulted in environmental problems. Hence, environmental pollution has been a cause for concern for the past few decades. The greenhouse effect caused by the release of carbon dioxide for example has become a main focus in the world. Newspaper headlines, academic material and protests by various environmental activists have forced each one to be aware of their responsibility towards to environment. There has been an increasing divergence in the views between ecologists and economists whereby the ecologists have a very pessimistic view of the environment in the future, where they believe that the resources are depleting at very fast rate; on the other hand the economists have an optimistic view. Supported by statistical evidence the economic point of view for the future suggests that poverty levels are reducing, the natural resources will last for another 150 years. Government regulation is an alternative method of seeking to protect and preserve the quality of the environment. Regulation however does not always lead to ideal outcomes, and it can be enormously expensive. Regulation is not always based o market systems, so it is subject to all the problems associated with lack of information and lack of incentives that have plagued the socialist nations. For instance, in the case of global warming, emissions from carbon dioxide from efficient burning of all fuels case no harm where they are emitted. No one's rights are being violated by the invasion of harmful pollutant, yet these emissions are building up in the atmosphere. Thus this may require that in the future regulations must take this into account. Some scientists and environmental groups argue that the threat of global warming is serious and that despite high costs, the nations of the world must impose strong regulations quickly. Many countries have initiated air pollution control programmes in recent years. In England control was started by the institution of smokeless zones and by controls based on the colour of the emitted smoke and great movement has undoubtedly resulted. In Ontario, a more radical approach was adopted, by establishing an inventor of polluting sources and prohibiting the setting up of new industrial concerns without an agreed system of emission control, and also by measuring the 'air pollution index Various criticisms have been offered in terms of how pollution control measures are designed and implemented. It has been argued that often the Some theorists believe that reducing levels of environmental pollution is not only the responsibility for companies, but also a social responsibility of each and every resident; it can only be possible if the individuals also share the cost that is borne by producers, by paying higher prices for the services and goods. The rationale offered is that in return for higher prices, not only is the individual being offered better products but also a cleaner environment. It can be argued that even though it seems rational; to charge consumers higher prices for a safer environment, but it must be noted that companies gets subsidies, tax benefits and many other forms of the government support which helps them to cope with the increased investment in technology to produce environment friendly products, however, individual consumers are not paid higher wages and salaries to buy environmentally friendly environment. The idea is to hold those people responsible who pollute the environment and make impose some form of financial penalty. Some do believe that the solution by focusing on making the price signal work more effectively, by taxing the producer and providing him with some form of financial incentive to invest in would result in would be an extension of property rights and are all possible methods to combat the problem of pollution. Other possible methods that have been suggested are to issue tradable permits. The idea is that permits would allow...
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