1. Effects of environmental issues on the economy ……..by Siddhant Jain

2. 2 “The blunt truth about the politics of climate change is that no country will want to sacrifice its economy in order to meet this challenge, but all economies know that the only sensible long term way of developing is to do it on a sustainable basis. ” - Tony Blair

3. 3 INTRODUCTION Environmental issues are slowly taking a center stage and it is imperative for everybody to take them into consideration, including economists. Popularly, the effects of these environmental issues on the economy are studied under two views. The Optimistic View All is well The Pessimistic View Change! We need lots of changes! We will go through both these views

4. The Optimistic View Any economy is not dependent on just natural resources, Human Resource plays an equally important role Environmental issues eventually decrease the dependence of the economy on natural resources and shift it more towards the population This shift is ultimately more beneficial for the economy since there is an unlimited potential to develop human resources by means of education, training etc. and so there is no limit to how much the economy can grow 4

6. We need more innovation of course! 6

7. The Pessimistic View The environment has a “carrying capacity” which is after all limited. This in turn limits the scope of our economy. Laws of thermodynamics ultimately bind us: We can’t create energy (law of conservation) Energy becomes less and less useful as it is recycled(law of entropy) We need to keep a limit on our population and its demands, which effectively means, we are limiting our economy if we pay heed to the environmental issues 7

8. Conclusion… Any economy is after all man-made. As humans evolve with changing times, so will these economies. Environmental issues actually effect any economy in a positive manner by molding it according to the need of the hour and for the best. At the same time, it must be realized that all of this is nothing but a study. What looks to be more realistic are the bounds on an economy which these issues pose. 8

9. Together we can and we will! 6/17/2011 9 For Green Yatra. Vol Id:GYV11-270

10. 10 I summarize my points as follows Short run: Scarcity will show, having widespread effects Medium run: There will be degradation, soon followed by a growth in the economy Long run: Technology and Institution will change drastically leading to a complete make-over of the economic model

11. 11 About Green Yatra Green Yatra is a registered non-profit trust and a non-government organization (NGO) dedicated to the protection and conservation of our Mother Earth and it’s environment. We strive to maintain the integrity of the ecosystem for the benefit of all living creatures by introducing and adopting simple green lifestyle, eco-friendly ideas in our daily lives. Green Yatra was started and run by individuals who share a strong love and passion for protecting and respecting our only source of life—Mother Nature. We believe in ACTION by doing as much as we can to preserve our environment. Sitting idly, complaining, blaming the system, societies, or commenting on internet forums are THINGS WE DO NOT DO. We believe that by working logically, strategically, and practically with prevention and solution oriented approaches is the only way to reach our goal of nature conservation. The impact of Go Green Ganesha is a token of our dedication, effort, and hard work. We are working sincerely with devotion toward bringing out the VALUE of our nature, hoping for your complete support… visit us @: www. greenyatra.org Contact us @: info@greenyatra.org Be with us in twitter: https://twitter.com/Greenyatra Join us face to face us in facebook: http://www.facebook.com/greenyatra