VERONICA ANDREANA SEDAM ANAK RIBUT

2020819258

The relationship between economics growth and environmental pollution generally

discusses based on the framework of Environmental Kuznets Curve (EKC) hypotheses.
Explain what does the Environmental Kuznets curve attempt to predict?

Environmental Kuznets Curve (EKC) The inverted-U relationship between pollution and
growth derives its name from the work of Kuznets (1955) who postulated a similar
relationship between income inequality and economic development. Dinda,( 2004)..There is
a mutual effect between economic growth and the environment. While economic growth is
affected by the scarcity and availability of natural resources, rapid economic growth affects
the abundance and quality of available environmental resources and may therefore lead to
environmental degradation. Grossman and Krueger (1991) show the inverse relationship
between economic growth and environmental pollution. The relationship between the two
variables takes the opposite of U.

Kuznets believes that there is a direct correlation between average per capita income and
environmental pollution. This negative relationship turns into an inverse relationship in the
advanced stages of growth and an increase in the demand for less environmentally polluting
goods, leading investors to increase production of environmentally clean goods. The Kuznets
model has been developed by many econometrists using regression models by suggesting
that water and air pollution increases with development until per capita income is between
$5,000 and $8,000. When income rises above that level, pollution starts, as appears in the
traditional form of the Kuznets curve (EKC).
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2020819258

Explain THREE (3) types of air pollution sources that induced by human and give example
economic activity from each pollution sources.

The atmosphere is a dynamic system, which steadily absorbs various pollutants from natural
and anthropogenic sources. It is very difficult to get clean air today. Clean air is defined as
air flowing in areas sufficiently distant from places of human activities and other abnormal
influences. The World Health Organisation (WHO) defined air pollution as limited to
situations in which the outer ambient atmosphere contains materials in concentrations
which are harmful to man and his environment.

Firstly, the air pollution sources that induced by human is deforestation. Indiscriminate
cutting of plants, trees and forests has disturbed the balance of CO2 and O2 in nature.
Forests are also removed to meet the growing demand of population. The world produced
399 million tonnes of paper in 2009 and is losing 23 million hectare of forest cover each
year. Developed countries use more than 71% of the world’s paper production. By 2012,
Asia would be the largest producer of paper.

Secondly, air pollution sources that induced by human is metallic contaminants. Industrial
activities discharge toxic metals which are indestructible poisons to living biota. According to
International Register of Potentially Toxic Chemicals of United Nations Environment
Programme, there exist six million known chemicals in the world today and 30,000 new
compounds are added to the list every year. About 70,000 compounds are commonly
employed.

Lastly, air pollution sources that induced by human is agricultural activities. Several types of
biocides such as pesticides, insecticides, herbicides etc. are used in agricultural practices
which have caused soil erosion, ground water pollution and spread of pests resistant to
pesticides in air. A number of biocides such as DDT, BHC, aldrin, chlordane, endosulphan etc.
are not easily biodegradable. These are absorbed by plants and create adverse effects on
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2020819258

biotic components. In addition, agricultural pollution contributes to climate change by

releasing greenhouse gases (from machinery used for farming purposes) into the
atmosphere.

Discuss TWO (2) economics cost from air pollutions.

1. The number of deaths due to outdoor air pollution fell by about 4% in OECD
countries between 2005 and 2010. But while 20 of the 34 OECD countries achieved
progress, 14 did not.
2. In China, the cost of the health impact of air pollution was about USD 1.4 trillion in
2010, and about USD 0.5 trillion in India. There is insufficient evidence to estimate
the share of road transport but it nonetheless represents a large burden.

Discuss TWO (2) market-based solution to overcome the water pollutions.

VERONICA ANDREANA SEDAM ANAK RIBUT
2020819258

Among the market-based solutions to overcome water pollution is the establishment of

various regulations and large investments to reduce point source pollution have brought
great gains for the economy, human health, the environment and social values. Through this
method, the problem of water pollution can be reduced when all parties comply and follow
the rules set. The superiors also need to regulate this source of pollution so that the quality
of the water is maintained.

Next is water pollution charge systems “assess a fee or tax on the amount of pollution that a
firm or source generates”. The companies are willing to reduce the pollution to the level
when the marginal abatement cost can equate the fee they pay. The deposit refund system,
which is regarded as a special case within the pollution charges, is widely used among many
countries. The deposit refund system asks individuals to pay a deposit for the debris that
throw into water and pay back the money to them when the debris is collected. Many
countries have carried out this method through “bottle bills”

In Norway, more than 90% of beer and soft drink bottles which have deposits are re-cycled;
however, only 70% of wine bottles are recycled. The similar phenomenon is found in car
hulks. In Sweden, the effect of the car hulks project tends to be limited due to its cheap
deposit. While in Norway, with a deposit more than three times than that in Sweden, over
90% are re-cycled (Wrobel 1990). To some extent, a higher deposit always brings greater
responses. Furthermore, the deposit refund system can be used in other similar cases, such
as tires and diapers, where disposal expense is very high if individuals throw them away
randomly.

Discuss FIVE (5) economics activities that induce to problem of solid wastes.

1. Municipal service: Street cleaning, rubbish especially from beaches and wastewater
treatment facilities are examples of the solid waste generated by municipal services
2. Biomedical: syringes, bandages, worn-out gloves, pharmaceuticals, paper, plastic,
food scraps and chemicals are examples of solid wastes
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3. Industrial: medical wastes, demolition materials from building sites and other
hazardous wastes, as well as trash from manufacturing.
4. Agriculture activities: rotten food, pesticide containers, agricultural waste and other
potentially harmful substances.
5. Commercial and institutional: from hotels, shops, restaurants, schools and office
building, plastic, food wastes, metal, paper, glass, wood and cardboard are common