04-04-2020

ASSIGNMENT
INTRODUCTION TO ENVIRONMENTAL
SCIENCE 3 (3-0)
TOPIC: ENVIRONMENTAL ECONOMICS
SUBMITTED TO: DR ZAHID MAQBOOL
SUBMITTED BY: AAMISH AKBAR
ROLL NO: 19240
SMESTER:4TH BBA(even)A
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Economics, study of how human beings allocate scarce resources to

produce various commodities and how those commodities are
distributed for consumption among the people in society . The essence
of economics lies in the fact that resources are scarce, or at least
limited, and that not all human needs and desires can be met. How to
distribute these resources in the most efficient and equitable way is a
principal concern of economists. The field of economics has undergone
a remarkable expansion in the 20th cent. as the world economy has
grown increasingly large and complex. Today, economists are
employed in large numbers in private industry, government, and
higher education. Many subjects, such as political science and
sociology, which were once regarded as part of the study of economics,
have today become separate disciplines, although the study of any one
generally implies a working knowledge of the others.
Economic Planning;
economic planning, control and direction of economic activity by a central public authority. In its mo
dern usage, economic planning tends to be pitted against the laissez-
faire philosophy which developed in the 18th cent. Proponents of laissez faire believed that an econo
my works best when there is little government interference. The contemporary economic model of ra
tional expectations offers perhaps the strongest critique of economic planning in its assertion that eco
nomic forecasting, both by individuals and competing businesses, is generally rational. In this model,
government control of economic policy can only lead to complication, since any change instituted b
y central authorities has already been anticipated by the market. The level and type of central plannin
g in any economy is generally connected to the sort of political regime that dominates. In recent year
s, heavily structured economic programs have been associated in particular with socialism, commu
nism, and fascism. Economic planning also became an important part of public policy in nations tha
t did not adopt those doctrines, even in Western capitalist societies where the notion of a free market
is a fundamental tenet. Central planning under the Western capitalist governments came into particul
ar importance to combat the economic hardships that existed in many nations between World War I a
nd World War II. In most societies, the occurrence of war tends to subordinate all private activity to
a unified national effort and thus increases national economic planning. Central planning increases in
importance during a recession, or any serious economic decline. Planning can involve the use of dire
ct controls—such as rationing and price, rent, and wage limits—
or indirect controls, such as monetary and fiscal policy. Since the 1930s the U.S. government has use
d a variety of direct and indirect controls. The limited economic success and ultimate collapse of Co
mmunism in Eastern Europe has opened up intense debate about the perils of total central planning.

Distribution

distribution, in economics, the allocation of a society's total wealth

among various economic groups. Distribution, in that sense, does not
refer to the physical marketing or circulation of goods, which is part of
the process of exchange, but to the relative well-being and economic
wealth of persons and groups. By classifying people according to their
share of the distribution—usually by means of relative income—a picture
of society's stratification, and thus its structure, may emerge. Italian
economist Vilfredo Pareto developed (1897) one of the best–known
theories on the subject, arguing that a pattern of income distribution is
evident throughout history, in all societies. Inequalities in distribution are
related to inequalities in political power; in most societies, the
economically dominant strata tend also to be politically dominant. The
division of labor, which necessitates exchange, causes various problems
of distribution. Inequalities in distribution among industrial groups
making a common product are explained by the relative number
employed in each group when compared to the value of what they
produce or to the relative amount they get for a specific amount of work.
Unequal distribution arises also from inequality in reward to those in the
same industrial classification (capitalist, manager, or laborer). The
distribution of wealth between the capitalist and manager on the one
hand and the laborer on the other has been a major source of social strife
in the Western world since the French Revolution, and has been a
particularly important theme in the writings of Karl Marx and his
followers. Labor unions (see union, labor), through the use of political
and economic pressure, have striven for increased wages. The
distribution of the world's wealth has, since World War II, become a major
issue in international politics, especially as those nations that had
previously been the colonized suppliers of raw materials to the
industrialized countries have gained political independence and
embarked on development programs. In the United States, the National
Bureau of Economic Research has done important studies on the
distribution of wealth among economic groups.

Environmental issues in Pakistan

includeair pollution, water pollution, noise pollution, climate change,

pesticide misuse, soil erosion, natural disasters and desertification.These
are serious environmental problems that Pakistan is facing, and they are
getting worse as the country's economy expands and the population
grows. Little is being done to tackle these issues, because the goals of
economic growth and tackling terrorism within the country supersede the
goals of environmental preservation. Although NGOs and government
departments have taken initiatives to stop environmental degradation,
Pakistan's environmental issues still remain.

Economic consequences of environmental degradation

The majority of Pakistan's industrial sectors, for example fishing and

agriculture, which count for more than one fourth of the output and two
fifths of employment in Pakistan, are highly dependent on the country's
natural resources. Hence in order to sustain economic growth there is a
high demand on already scarce natural resources. However it is ironic
that what the country depends on for its growth is also what threatens
the future welfare and success of the country. According to the World
Bank,70% of Pakistan's population live in rural areas and are already
stricken by high poverty levels. These people depend on natural
resources to provide income and tend to overuse these resources. This
leads to further degradation of the environment and subsequently
increases poverty. This has led to what the World Bank refers to as a
"vicious downward spiral of impoverishment and environmental
degradation.

Environmental economics, policies and development in

Pakistan

The environment is the complex set of physical, geographic, biological, social,

cultural and political conditions that surround an individual or organism and that
determine its form and the nature of its survival. The environment influences how
people live and how societies. For that reason, people, progress, economic
development and environment are closely linked.Environmental economics is a
sub-field of economics concerned with environmental issues. Environmental
economics undertakes theoretical studies of the economics effects on natural or
local environmental policies around the world, particular issues include the costs
and benefits of alternative environmental policies to deal with air pollution, water
quality, toxic substance, solid waste, and global warming (National Bureau of
Economic Research).Environmental issues in Pakistan threaten the population’s
health and have been disturbing the balance between economic development and
environmental protection. The environmental conditions in Pakistan are a matter of
great concern.A number of serious environmental problems present in our country,
which are of great ecological concern in terms of sustainable economic future.
These are water pollution from raw sewage, industrial, limited natural fresh water
resources, solid erosion, pesticide misuse, deforestation, desertification and urban
pollution.

Environment has never been matter of concern for Pakistan and the tendency goes
further chronic as all mainstream political parties, bracing for participation in the
forthcoming polls, have placed environment issues at the bottom of their draft
manifestos.United Nations Framework Convention on Climate Change (UNFCCC),
adopted in 1992 and entered into force in 1994 and as a result the adoption of
Kyoto Protocol initially in 1997 (which later entered into force on February 16,
2005) has dubbed it necessary for all to have more vibrant climate change policies
at political and national level across the world.However in Pakistan, politics has all
glamour but blind to environment issues. Indifference on the subject gets more
appalling because common people especially civil society have not bothered to
bash political leadership for downplaying environment matters in their manifestos.
Adding insult to injury, various NGOs engaged in revamping environmental
degradation, government departments and independent associations, national and
international have also opted out to remain silent over the situation.In terms of
words, Pakistan claims to be part of global world but at the time of action, it lacks
interest to follow environment protocol, which are accepted and practiced on
international front.Even neighbouring country India has better awakening for
environmental problems and its political parties are so sensitive on the issue that
they have placed climate matters on the top of their manifestos.The Pakistan
People’s Party (PPP) was founded in 1967 by late Zulfikar Ali Bhutto but PPP
spotted environmental problems during 2002 general elections when late Benazir
Bhutto positioned them in party manifesto.The same manifesto was incorporated
in 2008 general elections. The manifesto just mentioned them instead putting
greater emphasis on environment to ensure water security, green energy,
environment-friendly policies and environment curriculum in educational
institutions. With similar fashion and mind, PPP’s 13-member manifesto committee
is again on the roll to fine tune its 2013 election manifesto highlighting five Es:
‘Employment, education, energy, equality, environment.The Pakistan Muslim
League-N headed by two-time Prime Minister Nawaz Sharif has even given a cold
shoulder to environment issues in all manifestos. It is not surprising the manifesto
does not cater to environment issue specially climate change, pollution of air and
marine habitat, water quality, biodiversity, invasive plants and animals, eco-
system, unsustainable agriculture, overpopulation and so on and so forth.

Pakistan Environment Lawyers’ Association (PELA) President Rafy Aalam

criticised political parties for belittling environment issues in their manifestos but
courageously confessed “Our like environment associations and NGOs also under-
performed as if political parties did nothing and we also stayed out of the
focus.”He said, “Had we been in touch with political leadership in making of
manifestos giving feedback on environment issues, they might have enlisted
environment problems in true letter and spirit and this would have turned as
tipping point but we remained dormant.”A lot of environmental policies are
introducing in Pakistan some of these are, national conservation policy (1992) aims
to facilitate integration of environmental considerations in millions of daily
economic, social and physical decisions of individuals, households communities,
corporations and government objectives conservation of natural resources,
sustainable development, improved use and efficiency of management of
resources, operating principles achieve greater public participation in development
of environment.Integration of environmental economics in decision making focus of
durable improvement of quality of life. National environmental policy 2005 goal to
protect, conserve and restore Pakistan’s environment in order to improve quality of
life of citizens through sustainable development objectives conservation and
efficient management of environment resources integration of environmental
consideration in policy making and planning process capacity blinding government
agencies and stakeholders for better environment managing organisations more
dynamic and responsive.National sanitation policy 2006 goal aims at providing
adequate sanitation coverage for improvement of quality of life of the people of
Pakistan and to provide physical environment necessary for health life
objectives.To ensure an open defection free environment, safe disposal of liquid,
solid, municipal, industrial and agricultural waste and promotion of health and
hygienic practice.To link and integrate sanitation programmes with the city and
regional planning policies of health, environment, housing and education.To
promote Lead Total Sanitation Develop guidelines to effective institutional
framework. Enhance capacity of government agencies and other stakeholders for
better sanitation and particularly water-borne diseases to develop and implement
strategies for integrated management of municipal, industrial, hazardous, hospital
and clinical waste meet international obligation in-line with national aspirations.

Change attitude towards sanitation services and increase mass awareness.

National water policy objectives, efficient management and conservation of
existing water resources. Optimal development of potential water resources. Steps
to minimise time and cost overruns in completion of water sector projects.
Equitable water distribution in various areas and canal commands. Measures to
reverse rapidly declining groundwater levels in low-recharge areas. Increased
groundwater exploitation in high-recharge areas.Effective drainage interventions to
maximise crop production. Improved flood control and protective measures. Steps
to ensure acceptable and safe quality of water. Guiding principles of national water
policy. Holistic and sustainable resource protect the environment planning,
development and management of specific water resources should be decentralised
to an appropriate level. Delivery of specific water services should be delegated to
autonomous and accountable public, private or cooperative agencies.Services in a
defined geographical area to their customers and/or members for an appropriate
fee. Water use in society should be sustainable with incentives, regulatory controls
and public education promoting economic efficiency, conservation of water
resources.Protection of the environment with a transparent policy framework
shared water resources within and between nations should be allocated efficiently
for the mutual benefit of all riparian users.Promote cost effective and appropriate
technological options for water supply systems- increase public awareness about
water safety, safe hygiene practices and water conservation, enhance capacity of
line ministries, departments, agencies and organisations at all levels in planning,
implementation and monitoring of water supply programmes.

Promote public-private-partnership for enhancing access of safe drinking water

and sustainable operation and maintenance of water supply systems. Promote
research and development for enhancing access, effectiveness and sustainability
of water supply interventions and promote inter-sectoral collaboration to maximize
the impacts of water supply interventions.

The national forest policy (DRAFT) goals the policy aims at restoration,
development, conservation and sustainable management of forests and allied
natural resources to ensure sustainability of ecosystem functions, services and
benefits for presented future generations of Pakistan.Objectives restoration and
maintenance of natural forests to preserve ecological cycles, functions and
services. Increasing productivity of forests to meet requirements of timber, fuel
wood, fodder and non-wood forest products and to promote sustainable natural
resource based livelihoods.Encouraging efficient utilisation of wood and non-wood
forest products, maximising wood substitution and development of alternative
renewable energy resources.Development of forest resource base to enhance
carbon sequestration capacity and mitigation of climate change effects,
mainstreaming sustainable forest management into sectoral policies, plans and
programmes.Conservation of biological diversity, protection and sustainable use
of indigenous flora and fauna. Fostering public-private partnerships to enhance
forest cover and promote commercial forestry in private sector and encouraging
role of civil society organisations.Strengthening forestry education and
research institutions to cope with the emerging challenges of deforestation and
climate change.Creating mass awareness and involving local communities in
sustainable natural resource management. Meeting national obligations under
Multilateral Environmental Agreements especially CBD, UNCCD, UNFCCC and UNFF.

Policy measure for the forest policy protection of forest lands from encroachments
transfer of forest land to non-forestry uses-control of encroachment- forest fire
management-regulating mining and quarrying bringing additional land under Tree
Cover Firewood Substitution Sustainable livelihoods through integrated NRM
Transparency and Good Governance Wood Substitution and Impact Liberalisation
Grazing Regulation Forest Development Fund.
National rangeland policy (DRAFT)

goal to rehabilitate the degraded rangelands and pastures close to their potential
for increased productivity enhance their environmental and regulatory functions
and services, increase and conserve rangeland biodiversity besides mitigating the
negative impacts of global climate change through collaborative and holistic
rangeland resources to contribute to the livelihood improvement of the rangelands
dependent communities as well as to the national economy objectives to enhance
the productivity and the related functions and services of the rangeland
ecosystem. To promote rangeland enterprises for the livelihood improvement of
the rangeland dependent communities. To conserve and maintain rangeland
biodiversity. To mitigate the negative impacts of global warming and climate
change especially related to the desertification. To enhance the skill and capacity
of the key stakeholders for the sustainable management of the rangeland
management. To undertake applied and action research on the key problems of the
rangelands Policy Thrusts of National Rangelands Policy. Rangeland resource
assessment and monitoring collaborative and integrated rangeland resources
planning range resource rehabilitation and management Increase forage
availability on other land use.Promotion of rangeland enterprises. Management of
rangelands for regulating sustainable water flow and reduced sediment production.
Ecosystem rehabilitation for biodiversity conservation. Mitigation of the impact of
global warming and climate change. Awareness raising about the significance and
management of rangelands. Skill enhancement of the farmers and capacity
building of the related stakeholders. Applied range research and technology
development and transfer financial resource generation coordination and linkages
development.Being a student I suggest this government should make such
policies, which are more effective, environmental friendly and useful of sustainable
economic development.
For example government could gradually decreased taxes on income, savings, and
investments and increasing them on energy and resource use and on products with
a high environmental impacts. A tax on the carbon content of fuels would give
consumers incentives to switch to fuels that produce less pollution.Humans are the
rational choice makers who make choices, based on experienced costs and
benefits, about all kinds of things. Typically, appeals are made in terms of sacrifice,
selflessness and moral shame do not work.A more effective strategy is to tap a
durable human propensity for thinking mainly of short term self interest.
Cooperation is more likely when people can learn from tit-for-tat incentive
structures. In economic production cycle more policy attention has been given to
the upstream (producers) to make production more environmentally or to reduce
waste in production process. Engineering of more energy efficient products.
Introducing regulatory policies that control the behaviour across a broad spectrum
of constituent groups, industries and economic processes.Community
management of common resources policies introducing in which common peoples
participate in making policies those are environmental friendly and beneficial for
the future generations.Introducing behavioural fixes by changing the people’s
minds and implement the legal fixes that mandate change through law regulation
rather than incentives, subsidies, or persuasion. These policies are environmental
friendly and increasing the economic productivity if they implemented.

At the end I would like to say in past a lot of environmental policies introduced, but
they were not implemented properly that’s way the environmental conditions in
Pakistan are still very bad even the least developed countries have a high
environmental status then Pakistan.If policies implemented in the real meaning the
development is guaranteed, environment became friendly and beneficial
economically, socially and culturally.

RECENT Activities PIDE Society Of Environmental Economics

PIDE Celebrated World Habitat Day With NCPC and UN-Habitat to promote Clean
Green Pakistan and Declaration of Argentina Park Islamabad.
Chief Guest Malik Amin Aslam

Venue: Argentina Park Islamabad

Date: Oct 28, 2019.

A debate on “ Impact of Cultural Practices on Environment ” was held on Oct 11,

2019 at Department of Environmental Economics of PIDE.

The debate was between two groups of 3rd semester’s students, 1st group was
headed by Khuzaima Safdar who talked about the positive impact of cultural
practices while the other group was led by Ayesha Ali. The 2nd group defended
their stance on the negative impact of cultural practices on the environment.

Dr. Abedullah (H.O.D) of the Department of Environmental Economics and Dr.

Rehana Siddiqui (Professor) gave their final remarks about the debate.