Question

What issues impact the environmental economics in the developing world and in industrialized countries?

Answer 1

Following issues impact the environmental economics in the developing world and in industrialized countries-

1. Unsafe water
2. Inadequate sanitation
3. Soil depletion
4. Indoor smoke from cooking fires and outdoor smoke from vehicles

Lack of access to clean water and sanitation are major contributors to various diseases. These cause death to more than 3 million children in the developing countries each year. Emissions from industries and vehicles and from the indoor smoke impose serious costs for heath and productivity. Vehicles emissions contain Lead. Lead causes high levels of IQ loss in children, heart diseases in adults. Indoor smoke caused by fumes also causes harmful impact on the health. Other than that, Soil degradation is the cause of declining productivity or yields. Soil erosion that is caused by this can also damage economic infrastructure. Water logging is a serious problem in some irrigated areas. Scarcity of water has been increasing and it is required to use it efficiently. Even the loss of forests has severe ecological and economic costs like lost watershed protection, local climate change, etc. many people are killed by flooding cause by deforestation.

Thus, right policies and institutions are required in such developing countries to help the economy free from these issues. For example, the distortions can be removed. Or people’s behavior towards resources can be changed by providing them incentives.