ENVIRONMENTAL ECONOMICS

1. ENVIRONMENTAL ECONOMICS Dr. M.B.Mule Professor & Head Department of Environmental Science, Dr. Babasaheb Ambedkar Marathwada University, Aurangabad.

2. Terms and Terminology • Environment • Economics • Economic system • Market • Money • Economic planning • Programmes • Policies • Priorities

3. Importance of economics • Environment • Definition • Types – Micro & Macro Ex. Hall, campus, city, country , world, globe • Components • Non living • Living • Physical and chemical phenomenon's and properties • Interaction among • Interdependence • Balance in biotic and biotic components • Complex network - invisibles

4. Man & Environment • Man a part of environment • Environment developed by the process of metamorphic change • Every component have importance • Importance of environment - for man • From living • Important animals (domesticated) • Important plants (cultivated) • Weeds • Predators / parasites • Harmful – tried to remove from environment • Beneficiary organism • Harmful organism • Competitors

5. Non-living components • Useful components • Top soil • Minerals • Rocks • Metals • Fossil fuels

6. Man – as dominating organism • Man developed systems • Economic, Social, Political, Educational systems • Economic system • Economics – skeletal system : backbone in human society • History : from prehistoric period • Kautilya’s – ‘Aarthshatra’- every dimension of human society. • Political system • Kingdoms- rules, regulations and responsibilities • Peoples responsibilities • Policy components • Strategies • Economic policies – various sections of human society • Concept of ‘Abhayarnaya’ • Rules for hunting • Human is at the centre

7. Present economic strategies and polices • Common citizen – at the centre • Development of human society • Assessment of human development - Per capita income - Per capita availability and utility of natural resource • Development depends on natural resource

8. Natural resource • What is natural resource • Definition : any material when obtained from surrounding environment and used for betterment of human society or which assess to man or which enhances the living standard of human life , then that material is categorized as natural resources. • Basic needs – i) air, ii) water iii) food iv) shelter v) cloths vi) social security (recently added). • Activities for basic needs – eg. Agriculture for food • Agriculture production – fetch in market – money used for assistance – agriculture become a natural resource. • Involved in development

9. Man’s Development • Depends on availability and utility • Unavailability – made available from market • Money - as a force • High convertibility • Importance of market in economy for human development • Human development policies – key role • Availability, exploitation , purification and utilization • Rate of human development - directly proportional • exploitation , purification and utilization results degradation of environment • Ex. Fossil fuels – various environmental problems

10. Natural resources • Air • Water • Soil (top soil) • Rocks (stones) • Minerals • Metals • Fossil fuels (coal, shell oil, petrol, diesel, kerosene, LPG, gasoline etc) • Flora (forest, crop plants, grasslands, orchards) • Fauna (domestic and wild animals, fisheries)

11. Resource value of components • Forest • Fuel wood • Timber • Materials for house construction • Agricultural equipments • Railway sleepers • Raw materials to industry • Forest products • Paper • Fiber • Medicines

12. b) Grassland • Grazing • Agricultural land • Raw material for industries • Food and fodder c) Aquaculture • Fishes (fishery) • Prawns (prawn culture) • Mollusc (pearl culture) • Aquatic plants • Duck farming • Whale dairy

13. d) Wild life • Food • Medicine • Fancy articles • Fragrance (cents) • Cosmetics • Skin (leather) • Fur • Other valuable products

14. e) Minerals • Chemicals • Useful compounds f) Metals • Fe, Cu, Au, Zn, Hg, La, Ge, Ag, Pb etc. g) Fossil fuels (coal, shell oil, petrol, diesel, kerosene, LPG, gasoline etc) h) Top soil • Agricultural • Grassland • Forest • Cover • Environment provides resources and plays key role in human development.

15. Degradation of Environment • Environmental problems • Air pollution • Water pollution • Soil pollution • Thermal pollution • Noise pollution • Radiation pollution • Marine pollution • Pesticide pollution • Vehicular pollution • Agricultural pollution • Eutrophication

16. Pollution due to sewage • Oil pollution • Deforestation • Desertification • Decreasing soil quality – fertility • Soil salination • Underground water pollution • Decreasing biodiversity • Decreasing genetic diversity • Decreasing ecosystem diversity • Decreasing oceanic diversity • Problem of acid rain • Photochemical smog

17. Ozone layer depletion • Hazardous waste and their problems • human health problems • Problems to aquaculture • New disease in cultivated plants • Emerging new kinds of disease in human society • Green house effect • Global warming • Climate change • Decreasing wild life • Extinction of wild life • Habitat loss of wild life • Decreasing crop plants diversity

18. Increasing disease susceptibility • Resistance development to germ and pathogens • Genetic abnormalities in plants, animals/ man • Problems of arctic and Antarctic regions • Depletory resource material • Decreasing fossil fuels • Degrading quality of resources • Pesticide residue and health problems • Flooding • Draught conditions • Increasing rate of extinction • Bioaccumulation of toxicants • Change in monsoon • Change in hydrological cycle • Cloud busting • Every problem – have adverse and beneficiary impacts • Adverse impact are dominated eg. Climate change

19. Economic causes for degradation • Loss assessment in terms of currency • eg. Flooding • to crop plants • due to soil erosion • Due to damage to road, railroad • Blocking transport • Loss of working days • Loss of production in industries • Due to health problems • Money required to treat disease • Loss to house and artifacts • Loss to national monuments • Loss to public property • Benefits – deposition of silt improves soil quality at certain places • Need to consider the economic aspects of environment

20. Benefits of environmental economics • For protection of environment • Ex. Water loss during flooding • Thrown stored water • For identifying potential rate of development • For the sustainable use of resource

21. Economist give least value to environment- probable reason for rapid degradation • Fear of market failure • Pricing of goods • Less weightage the environmental services and maximum to man made activity • eg. Pricing of fish • Pricing of water • Not given cost to the environment • For conservation envirnmetnaleconimics can be used, • Eg. Plant Oxygen production

22. Concept of conservation • Guarding – not good conservation • Partial use with protection – good conservation Ex. Fish from pond • Conservation of environment means conservation of natural resources • Concept of sustenance • Properties of sustain ace

23. Economics of natural environmental components • Plants • Top soil and its value - for food grain production • No export • Values of gene • Value of wild life • Economics of non-renewable resource • Eg. Iron – ore – product cost

24. Concept of sustenance and 3 R • Reduce use • Reuse • Recycle • Conservation of nature means conservation of natural resources through economic policies

25. Thanks for your kind attention ….