Environmental

science assignment

Market and economy

strategy vs environment

Submitted by:
Name: sidharth Gupta
Roll no.: 2k19/bba/108
Environmental economics is addressing some of the most important questions facing the
global environment. For example, environmental economics has been instrumental in the
fashioning of legislation and policies like carbon taxes, product eco-labelling, pollution
offsets, command-and-control legislation etc. It is answering the question of how to create
a balance between protecting the rainforests and addressing the issue of the poverty of
those whose livelihood revolve around the forests especially in the tropics.

Economics is the study of the allocation of scarce resources, including how markets
function and how incentives affect people’s, businesses’ and institutions’ behavior. Within
this discipline, environmental and natural resource economics is the application of the
principles of economics to the study of how environmental and natural resources are
developed and managed.

EPA (Environment Protection Agency) uses economic analyses to improve the effectiveness
of its environmental policies. A variety of economic tools allow the costs and benefits of
different policy options to be compared. EPA also pursues new research to develop
improved methods for measuring the economic consequences of environmental outcomes.

Economic growth means an increase in real output (real GDP). Therefore, with increased
output and consumption we are likely to see costs imposed on the environment. The
environmental impact of economic growth includes the increased consumption of non-
renewable resources, higher levels of pollution, global warming and the potential loss of
environmental habitats.

However, not all forms of economic growth cause damage to the environment. With rising
real incomes, individuals have a greater ability to devote resources to protecting the
environment and mitigate the harmful effects of pollution. Also, economic growth caused
by improved technology can enable higher output with less pollution.

External costs of economic growth are:

1. Pollution
2. Less visible more diffuse pollution
3. Damage to nature
4. Global warming and volatile weather
5. Soil erosion
6. Loss of biodiversity
7. Long-term toxins
The links between the economy and the environment are manifold: the environment
provides resources to the economy, and acts as a sink for emissions and waste. ... Poor
environmental quality in turn affects economic growth and wellbeing by lowering the
quantity and quality of resources or due to health impacts, etc.
Human economic activities affect the environment due to the following reasons:
1. Decreased Water Quality
2. Increased Pollution
3. Greenhouse Gas Emissions
4. Depletion of Natural Resources
5. Contribution to Global Climate Change
Some of these are the direct result of human activities, whereas others are secondary
effects that are part of a series of actions and reactions.
Environmental protection itself contributes to economic growth. Somebody makes and sells
the air pollution control technologies we put on power plants and motor vehicles.
Somebody builds the sewage and water treatment facilities. Just as someone makes money
off of solar cells and windmills and whoever invents the 1,000-mile high capacity battery
that will power electric cars someday will become very, very rich. And environmental
amenities are worth money.
The climate problem is not caused by economic growth, but by the absence of effective
public policy designed to reduce greenhouse gas emissions. There is nothing incompatible
with capitalism and environmental protection as long as rules are in place that control the
environmental impacts of the products and services we make and use. With those rules in
place, a concern for environmental sustainability can and will permeate everyday decision-
making in the private, nonprofit and governmental organizations we all benefit from.

On the production side, organizational managers work to increase environmental

sustainability, but on the consumption side, consumers are not only buying green but
changing patterns of consumption that also help reduce environmental damage. Going to a
gym, riding a bike or eating a salad are all activities that add to the GDP. But so, does taking
your private jet to your ski lodge, driving in your SUV to the ski slopes, and eating a steak.
All consumption behaviors are not created equal and do not have the same impact on
environmental sustainability. More sustainable lifestyles are emerging and they can be
detected in consumption patterns. For example, young Americans seem less interested in
owning cars than their older siblings and parents did. Ride-sharing, bike sharing and other
transit options have become feasible due to the development of the smartphone. But
sitting in an Uber or driving your own car are both economic activities that are counted in
the GDP.
These consumption trends are more influenced by changing cultural norms than by public
policy, and typically should not be subjects of policymaking. Exceptions might include
consumption that has a direct negative impact on others such as driving while intoxicated
or smoking in a public space. The environmental impact of consumption can also be
reduced by new technologies. For example, streaming music and video has far less
environmental impact than videos and discs that used to be manufactured, packaged and
shipped before they were used.

The environmental sciences have documented large and worrisome changes in earth
systems, from climate change and loss of biodiversity, to changes in hydrological and
nutrient cycles and depletion of natural resources. These global environmental changes
have potentially large negative consequences for future human well-being, and raise
questions about whether global civilization is on a sustainable path or is “consuming too
much” by depleting vital natural capital. The increased scale of economic activity and the
consequent increasing impacts on a finite Earth arises from both major demographic
changes—including population growth, shifts in age structure, urbanization, and spatial
redistributions through migration and rising per capita income and shifts in consumption
patterns, such as increases in meat consumption with rising income.

Developing nations such as China and India are increasingly becoming important players in
global environmental protection due to their rapid economic growth, large population base
and fragility of domestic ecosystems. For transboundary and global pollutants such as
greenhouse gases, pollution abatement in these nations is critical to ensure the success of
international mitigation efforts. Solving global environmental externalities requires better
understanding of the environmental protection incentives and mechanisms within
developing nations.

It’s natural for a business to use all of its genetic makeup to promote itself and stand out in
its market. For example, SMEs frequently use grassroots beginnings or a local focus to give
them a unique tone of voice, while larger companies pride themselves on winning industry
awards.
A mixed economy is variously defined as an economic system blending elements of
a market economy with elements of a planned economy, free markets with state
interventionism, or private enterprise with public enterprise. While there is no single
definition of a mixed economy, one definition is about a mixture of markets with state
interventionism, referring specifically to a capitalist market economy with
strong regulatory oversight and extensive interventions into markets. Another is that of an
active collaboration of capitalist and socialist visions. Yet another definition is apolitical in
nature, strictly referring to an economy containing a mixture of private enterprise with
public enterprise. Alternatively, a mixed economy can refer to a socialist economy that
allows a substantial role for private enterprise and contracting within a dominant economic
framework of public ownership. This can extend to a Soviet-type planned economy that has
been reformed to incorporate a greater role for markets in the allocation of factors of
production.

The effective management of the economy is incompatible with the capitalist system. This
is manifested most clearly by the vast amount of environmental degradation in most
capitalist countries. It is clear that within the framework of a capitalist economy there is no
point in even raising the question of management of the environment on a nationwide
scale. But such a formulation is logical and necessary in conditions of a planned socialist
economy.

Another tactic that companies can adopt is sustainable marketing, which works as both a
product and a brand marketing strategy. Responsibility is becoming a common brand value
and several companies have announced environmental and social initiatives that put the
onus back onto the customer, challenging them to choose between the cheaper option and
the (morally) better option. However, it is essential to plan and execute sustainable
marketing carefully or your brand can leave itself open to heavy scrutiny.

Sustainable marketing is the promotion of environmental and socially responsible products,

practices, and brand values. If you’ve ever spent a little bit more on something because you
know it was locally sourced or 100% recyclable, you’ve experienced sustainable marketing.

Businesses can use sustainable marketing for a specific product, time-sensitive cause, or
even as their businesses’ USP. LEGO is one company that has nailed sustainable marketing.
Dedicating a section of their site to its sustainability programs, it is a brand that has a
clearly-defined goal for its environmental efforts.

Generations of customers are still familiar with LEGO, as parents who grew up with the toy
sets pass them down to their children and grandchildren. This means LEGO has the
potential to ingrain a positive message about the importance of sustainability to a wide
group of people around the world. There are many examples of companies promoting
programs, objectives, strategies, plans, and all manner of terminology about how they are
becoming more sustainable.
The key aspects of sustainable marketing are:

1. Long-term plan: Social and environmental issues are extremely large and need to be
tackled on a larger time frame than seasonal promotions. The public knows that
sudden change is almost impossible, so you need an objective that targets high-scale
change over a large timeframe. Take the LEGO example mentioned earlier, its
mission is to have production of its LEGO bricks be sustainable by 2030.

2. Consistent plan: Don’t just need a sustainable idea – you need to be specific. It is
easy to tell your customers that one aspect of your brand is eco-friendly, but what
about other elements? For example, imagine your brand sells a drink and you switch
to new ingredients that are sustainably sourced. You may be tempted to shout about
how responsible your brand is, but are the bottles you sell that drink in recyclable?
What about the labels used on the bottle?
Such a problem was brought to light when McDonald’s replaced its plastic straws
with paper ones. Due to the thickness of the new straws, the company said that they
were not yet easily processed and recycled by the company’s waste solution
providers, so they should be put in the general waste.

3. Deliver the plan responsibly: OVO Energy prides itself on winning Supplier of the
Year, but its primary selling points are its supply of green energy solutions and its
vision of a zero-carbon lifestyle.
Sustainable marketing is, therefore, a core part of the company's strategy and aims
to form a strong bond between the brand and the concept of renewable energy in
the mind of customers. But how does OVO Energy get this message out to the public?
Surely not through traditional marketing material wrapped in plastic and driven in
smoke-spewing lorries across the country.