Discuss briefly the environment economy interaction
The environment and the economy are inter related. There is three fold connection between the environment the environment, human society and its economy. Firstly the environment provides the economy with raw materials. These raw materials include energy which is itself a consumes product as well as intermediate.
Secondly the environmental provide service which are used directly by consumers. These may be critical life support services such as the oxygen in the air that we breathe or the water that we drink. They may be aesthetic.
Finally there is a less recognized but vital service that the environment provide to the economy. It acts as a respectable or sink for all the waste product that are the result of the process of production and consumption.
All problems relating to the degradation of the environment relate somehow to an interference that occurs in this relationship. The interference hinders the delivery of these goods and service that are provided directly or indirectly by the environment to the economy
The level of production and consumption activity is decided by the economic interaction and the decision of production and consumption overlooks the importance of the environment due to production and consumption activity human has created many pollution problems like water pollution, deforestration, land degradation. Due to these the quality of the environment has degraded. So it indicates that problems of environment pollution or degradation occur as a by product of our activities related to production and consumption.
The environment Kuznets curve (EKC) shows that interaction between economy and environment which stakes that at the initial stages of growth a country produces less pollution but later on when the economy further grows the pollution problem also gets higher, but in the later stages of development due to use of modern an sophisticated environment friendly technology a country is able to reduce the level of pollution. It can be shown with the help of following diagram.
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