Question

Explain three resons why the environmental regulation should not be sacrificed for growth of economics. (1 page)

Answer 1

Growth of economics can only be achieved if there is positive growth of real GDP but with sustainability . Environment regulation is an inevitable part of economic growth . Sometimes production creates negative impacts on environment such as pollutin . In terms of ecnomics we call it negative externality . Abatement costs make cost of production go higher . But still environment regulation should not be sacrificed for growth for the following reasons :

1) over exploitaion of resouces and environment may lead to exhaustion of resources for the future generations .

2) negative externalities of production such as pollution leads to lower life expectancy or diminishes human capital , this has negative effects on economic growth .

3) For enjoying the benefits of economic growth people should get a proper ecological balance to live in , without environmental regulation social welfare is lost .