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

What problems do environmental issues create for economists, and what solutions might an economist suggest for the problem of more and more cars using the roads.

Extracts from this document...

Introduction

Economics essay A) what problems do environmental issues create for economists B) what solutions might an economist suggest for the problem of more and more cars using the roads. Environmental problems are different problems the environment is facing due to new technologies. These problems are pollution of the nature around us through smoke with harmful chemicals or due to loud noises from speakers or radio etc or from refrigerators and air conditioners at home which give out CFC chloro-fluro carbon which damages the ozone layer. Cutting down of trees to is environmental damage as each tree cut down is destroying shelter of a bird, the shade we could get from it etc. Environmental issues are major problems for economists who study the depth of problems which can affect the economy and environmental problems do affect the economy to a great extent. The following are the problems caused by environmental issues to the economists. 1) negative externality - externality occurs when full cost of production or full cost of benefit is not taken under consideration. This is when a good is produced taking into consideration only its private cost ( cost of producing the good ) and not considering its external cost ( that is the extra cost of the damages the good has caused while production). ...read more.

Middle

The causes of these problems are difficult to locate therefore the economists cannot find possible solutions to the pollution caused. As per the example the Malaysian government might be unaware of the pollution being caused by the Indonesian chemical plants. So the government doesn't know how to treat the problem even after it has taxed its own resources. The economists may fail to study the depth of the problem of the pollution caused because of problems caused while locating the cause of pollution. 4) These environmental problems may also lead to issues for the economists because often the cost of the damage caused in a country has to be paid by that particular country even though it is not the polluter. Taking the above Malaysia example the price of the damage caused by Indonesian chemical plants have to be paid by Malaysia who is taxing its own plants for the damaged. Therefore if it is difficult to locate the polluter then the country which is polluted has to pay the price. All these are the various problems caused to an economist with regard to environmental problems it is a negative externality that is the social cost is greater than the private cost, the cost of the damage may cause problems in the future, it is difficult to locate the cause of the pollution, the cost of the damage is paid by the non polluter. ...read more.

Conclusion

People will prefer to travel in something besides cars in order to avoid the heavy taxation. 3) Taxing car parking areas. this would discourage firms from providing car parking lots or spaces and as a results would not let the motorists achieve their objective that is if there is no car park motorist may find it tedious to get parking space and therefore the motorists would prefer not traveling by car. 4) Improve the public services is also an option to reduce use of cars. If the public transport are made more efficient and convenient then people would prefer traveling by public transport rather than paying so many taxes on traveling by car. You could also minimize the cost of traveling by public transport and therefore allow more people to travel by it. Also the taxes collected by the cars can be used in the development of the public transport. 5) Increase taxes on cars, by increasing the prices of the cars by taking into consideration the social cost and not only the private cost. Make the consumers pay the external cost caused by the cars. Therefore discouraging them to buy cars in the first place All these are ways put forward by economists for reducing people from using cars by taxing complementary goods like petrol and also by taxing car parks and then by improving and subsidizing public transport and by having road pricing policies to have a license or electronic devices to put prices on cars ...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 Environmental Management 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 Environmental Management essays

  1. Environmental Problems.

    Pollution of air: * Major problem in most developing world cities. * The drive to industrialization brings with it inevitable problems, especially as legislation to protect the environment is often non-existent or rarely enforced. * The hidden economy can add to the levels of pollution as small, unlicensed industries are set up in peoples homes or on rooftops.

  2. Explain the causes, effects and possible solutions to the problem of global warming

    Methane is added to the atmosphere by deforestation, decomposition of waste and also rice and cattle production. CFC's, though small in number have a warming effect per molecule 10 000 times greater than carbon dioxide and stays in the atmosphere for up to 1000 years, compared with just 12 years for carbon dioxide.

  1. The Ozone a Hole in the TheoryThe protective ozone layer around our world undergoes ...

    and aerosol cans! By the way, who does the government expect to pay these outrageous bills. If it the consumer must, than the consumer will be in debt for years to come. If the companies that make the CFC products will have to pay for it then many layoffs and

  2. Management of woodland area.

    We visited the Epping Forest but unfortunately we did not manage to achieve all the tasks we set to. This was because there wasn't enough time for us to accomplish all the tasks. We only managed to accomplish some simple tasks like measuring the height and girth of the trees,

  1. How public services deal with environmental issues

    Substances like oil and paint also harm sea-life. Crude oil from tanker accidents account for around 12% of petroleum hydrocarbons released into the oceans every year. As seas have no barriers, pollutants like oil can spread very quickly to different waters around the world.

  2. Cars offer fast reliable transportation, offering drivers access to anywhere with roads, but there ...

    Carbon dioxide and carbon monoxide are two greenhouse gases that damage our Earth's atmosphere. Reducing the amount of these greenhouse gases will greatly help reduce these effects. Cars release 30 percent of the carbon dioxide in the earth's air. Carbon dioxide is released from the tailpipe of a car and can do much damage to the human respiratory system.

  1. Emerging Chemical Contaminants: The Case of Perfluorochemicals

    the Government of Canada's addition of PFCs to their List Of Toxic Substances (DEFRA 2004). Emmsions and Pathways To the Environment There are no known natural sources of PFCs. As yet the mechanisms and pathways leading to accumulation of PFCs in wildlife and the environment has not been well characterised.

  2. A report concerning new business development in the local area, which is the Paddington ...

    One of the major developers to help with the Paddington Basin Regeneration organisation was the Grand Union. The Grand Union building is the final phase of Paddington Basin. This flagship building was designed by world-class architects Richard Rodgers Partnership. The building is located on the waterside at the far eastern

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