• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

selective logging on impact of market economy

Extracts from this document...

Introduction

Show how selective logging can be seen as an impact of the market economy on the environment. Discuss the range of possible solutions that there might be to this problem. The Amazon rainforest is one of the world's most marvellous natural resources. The market economy is potentially damaging it. The first section of the essay will discuss what a market economy is. It will explore the impact of economic activity in market economies on selective logging. Furthermore, discussing how selective logging affects the wider ecosystem. The second section will discuss which solutions could be taken to limit the impact of economic activity; also exploring weather these solutions are realistic and/or practical. Economics attempts to alert society to the questions and point out the consequences. "An economic system, which resolves the basic economic problem mainly through the market mechanism". (Anderton 2006, p 286) This is how the market economy is defined. ...read more.

Middle

Externalities can cause market failure if the price mechanism does not take into account the full social costs and social benefits of production and consumption. Selective logging is a negative externality because it is a side effect of production. Selective logging is a consequence of the market economy on the environment and wider ecosystem because, "the forest becomes drier and more flammable"(adapted from Lister, 2005), and "logging tracks is also responsible for the destruction of much forest wildlife" (adapted from Lister, 2005). Selective logging is also responsible for "15 million metric tons of carbon from the ecosystem"(adapted from Lister, 2005). Industrial logging in forests is a major cause of ecological destruction and the loss of biodiversity, "5000 square miles" (adapted from Lister, 2005) every year is destroyed in this way. The study of externalities by economists has become extensive in recent years - mainly because of concerns about the link between the economy and the environment. ...read more.

Conclusion

Far more paper is used than is needed, and a far greater proportion could be recycled. Protection of certain areas would not happen without money to fund it. This is where market failure is occurring within a market economy. Companies and industries have a significant role to play in forest protection and management. By using only timber and paper that comes from environmentally responsible and socially just forest management, they can have a huge impact on the rate of deforestation. In conclusion, selective logging can be seen as an impact of the market economy on the environment because the existence of externalities can cause problems for the environment. There are limited realistic and practical solutions to selective logging. Although, the most practical would be reducing the consumption of wood products. Economic decision-making is proven to be the cause of the worsening environment because economic growth and environmental degradation are linked in market economies. This essay has shown how the interrelation of the social and natural has created environmental problems. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Macroeconomics essays

  1. Pakistan is in the grip of a serious energy crisis that is affecting all ...

    Effect on textile business: * Textile exports of the country decreased by 3.79 per cent during the first seven months of the current financial year as compared to the corresponding period of the last financial year. During January-July 2008-09 textile products export was recorded at $5.82 billion as compared to

  2. Budget 2004-05 and Economic Analysis of Pakistan

    (Rs.in Million) 2003-2004 2004-2005 Classification Budget Revised Budget Recreational, Culture and Religion 2002 2003 2197 Recreational & Sporting Services 4 4 8 Cultural Services 142 140 154 Broadcasting & Publishing 1550 1539 1702 Religious Affairs 238 253 263 Administration of Information Recreation 68 67 71 and Culture EDUCATION AFFAIRS AND

  1. Compare and contrast the various methods of dealing with the problem of monopoly.

    where the regulator is only dropping suggestions to the firms; they are not forcing any actions upon them. Despite preaches by Fuel Poverty organisations and EnergyWatch (the regulator), prices are still not falling at the rate that they should be.

  2. Macroeconomic Impact on Business Operations

    The actual amount of created money is reciprocal to the required reserve rate (M=1/r, where r = the reserve rate). Banks are able to continue to create money as long as they meet their reserve requirements. Banks can create money by purchasing bonds from the public or government.

  1. Indian Economics

    Male-Female differences: Table shows males and female unemployment rates. Female unemployment rates are significantly higher than male unemployment though the difference has narrowed down over time. 3. Age differences: Unemployment rates are significantly higher in the younger age groups. 4.

  2. Australia's place in the global economy - "Explain the reasons for our current exchange ...

    With Australia's interest rates low and U.S interest rates high, there was discouragement of foreign investment in Australia. "Australia is more integrated with the world than ever and its clear that unfolding events... of global capitalism will have a greater influence than domestic factors and the RBA"(Source: Sydney Morning Herald: It's the Americans, stupid - Ross Gittins 9/4/01).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work