Impact of Economic Growth on Environmental Protection

That is, high economic growth due to more use of resources produces green house gases and other pollutants and increase the level of environmental negative environmental effects compared to positive environmental effects. In other words, high economic growth as explained above is not compatible with the principles of sustainable development to protect the environment with regard to inter-generational equity. Sustainable development is a way to reduce waste and to reduce the depletion of resources so that the next generation does not suffer more than the present.

The provision of public goods such as health and other services by government also increase the use of resources because the consumers are not priced. As a result,  they may use the resources excessively and there fore they also can lead to resource depletion and waste and  contribute to negative environmental effects.

In addition, environmental externalises show their effects on a longer term and policies to protect the environment also takes a longer term compared to the political cycle in Australia,  governments take a short-term view and there fore ignore the longer term issues of environmental protection.

However, due to global nature of environmental issues such as green hose effect international community is taking action by international means to have agreeable targets via Kyoto conference and internal carbon trading schemes. For example, the current Rudd government is proposing to introduce by legislation a carbon emission scheme as well as the US government also taking steps in this direction.

However, the industry and some consumer groups are not supporting these proposals because of the current state of the economy and its impact on employment and living standards and viability of firms at least in the short term.

As opposed to industry and consumer groups, environmental conservation groups argue the targets are very inadequate and there fore it will be disastrous to the environment and they point to the fact the economic growth cannot be sustainable in the longer term due to environmental cost affecting economic activity. This is due to energy costs, decrease in food production, health cost and other social costs. That is, in their view the cost of action is less than the cost of inaction and there fore environmental protection must be taken in to account with economic growth.

As explained above, at least in the short-term in Australia high economic growth is not compatible with environmental protection. That is, if economic growth is considered important by the government, consumers firms, and environmental protection takes a secondary role, then high economic growth certainly will negatively affect environmental protection as explained above.