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selective logging on impact of market economy

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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.


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.


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.

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