Professional Documents
Culture Documents
Subject : Economics
UID SF0121023
Overview
Literature Review
Research Questions
Scope and Objectives
Research Methodology
5. CONCLUSION
6. BIBLIOGRAPHY
1. Introduction
Through its many services it offers and as a direct input into production, the environment
plays a significant role in our economy. Minerals and fossil fuels are examples of
environmental resources that directly assist in the production of goods and services. Other
services are also provided by the environment. Additionally essential to our well-being, it
gives us opportunities for recreation, enhances our health, and does much more. The
prosperity and well-being of the economy and its citizens, in both developed and developing
economies, depends on economic growth. It stimulates advances in technology and also an
important factor in enabling other drivers of wellbeing, such as improvements in health,
education, and overall quality of life. Usually, when we talk about economic growth, we
mean an increase in the quantity of goods and services that an economy produces, as
measured by metrics like the Gross Domestic Product (GDP). While the value of goods and
services offered through the market is reflected in the GDP and other comparable measures,
many other goods and services that are not offered through the market but still contribute to
overall welfare are not included. Because of this, the GDP does not accurately reflect many
of the elements that influence society's well-being. Human wellbeing is a complicated and
multifaceted concept that is influenced by a variety of variables, such as income levels (both
absolute and relative), health status, level of education, living conditions, and environmental
quality.
While economic growth has produced many benefits – raising standards of living and
improving quality of life across the world – it has also resulted in the depletion of natural
resources and the degradation of ecosystems. There has been much debate over whether or
not it is possible to achieve economic growth without unsustainably degrading the
environment, and a growing realisation that economic growth at the current rate of depletion
and degradation of environmental assets cannot continue indefinitely. Despite the fact that
wellbeing is a multifaceted concept, economic growth continues to play a significant role in
enabling or driving improvements along many of these dimensions.
The Millennium Ecosystem Assessment of 2003 found that 15 out of the 24 ecosystem
services it examined were being degraded or used in an unsustainable manner, and that the
use and consumption of natural resources like minerals and metals is continuing to rise. Some
believe that the finite world is The extent to which economies can continue to grow over time
is constrained by Earth's resources. Others contend that sustainable resource use is
compatible with sustained economic growth, with the costs of inaction likely to be much
higher than the costs of immediate action.
Literature Review
A ) H. Daly, 1997, ‘Beyond growth: The economics of sustainable development’, Boston, MA:
Beacon Press. In this Book Daly as a former economist at the World Bank, Daly takes them
head on in Beyond Growth with reasoned arguments and increasingly intellectual elegance. He
begins by challenging the trendy and fluid nature of the term sustainability. “One way to render
any concept innocuous is to expand its meaning to include everything,” he writes. He then gives
his definition of sustainability: “Development without growth beyond environmental carrying
capacity, where development means qualitative improvement and growth means quantitative
increase.”
a) Tim Everett, Mallika Ishwaran, 2010, ‘Economic Growth and the Environment’, Defra
Evidence and Analysis Series.
As the UK economy emerges from the downturn, attention is shifting to how best to return it
to sustained and durable economic growth. But what does sustained and durable economic
growth mean in the context of the natural environment? The UK and the global economy face
significant environmental challenges, from averting dangerous climate change to halting
biodiversity loss and protecting our ecosystems. There has been debate over whether it is
possible to achieve economic growth whilst also tackling these challenges. This
paper does not try to answer the question of what the sustainable level of economic growth
might be, but instead examines the link between economic growth and the environment, and
the role of environmental policy in managing the provision and use of natural assets.
a ) What is sustainable development and what are the problems faced while achieving it ?
Scope
This paper is limited to the study of economic growth only to that extent as it helps in the
maintenance of sustainable growth. It does not attempt to study other aspects of economic
growth and development. Furthermore, the paper attempts to study the environment and how it
should be maintained to achieve sustainable growth along with the economy. The paper also
presents a case at last to display how economic growth and environment can be balanced for
sustainable growth.
Objective
a) To study the concept of sustainable development and the problems in way of achieving it
b) To study how economy and environment can be balanced to achieve a sustainable growth
Research Methodology
This project uses the method of doctrinal research which is related to secondary sources from
libraries, archives, journals etc. A number of journals articles and research papers from online
sources were used while creating this paper. It does not take into account any primary data and
citations are used strictly to maintain the authenticity of the sources.
2. A BRIEF UNDERSTANDING OF SUSTAINABLE DEVELOPMENT
By "sustainable development," people typically mean that the nation's economy should grow
now, but it also needs to be ensured that this growth won't jeopardise the needs of future
generations. As a result, sustainability envisions long-term growth where everyone enjoys
better quality of life. Sustainable development ideologies incorporate a series of concerns
relating to the global impact of human activities by including ecological limits, basic human
needs, distributive justice between present and future generations, economic growth, ethical,
spiritual and religious values.1 A human being is dependent on the economy, environment, and
society, which are the three main components of sustainability, for survival. The needs of these
three groups must be balanced. It should be noted that these divisions frequently overlap and
are not completely separate. The realisation and application of human rights implies that the
fundamental needs of the human being are satisfied. Access to basic necessities like food,
shelter, employment, and fair income distribution is also included. The goal of social
development is to enable the underprivileged to use more of the resources that are available to
them in order to meet their own needs and improve their own lives. Women, children, members
of indigenous cultures, those with disabilities, and all other members of populations thought to
be most susceptible to the effects of poverty are given special consideration in order to ensure
fair treatment. Economic growth increases employment opportunities and people's capacity to
earn a living for their families and themselves. Sustainable agriculture, industry, and full
inclusion in the global economy are all aspects of economic development. The full realisation
of social and economic developments depends on and reinforces one another. In June 1972, the
UN General Assembly held a conference in Stockholm on the "human environment," which
produced a set of guiding principles. It emphasised that man has a fundamental right to a
healthy environment and that he also has a duty to preserve the environment for both current
and future generations. It also argued that protecting the earth's natural resources is necessary
for both current and future generations.
In 1983, the World Commission on Environment and Development was established to address
the problems relating to the ongoing depletion of natural resources and unsustainable
development. Sustainable development was defined as "development that meets the needs of
the present without compromising the ability of future generations to meet their own needs" by
the Brundtland Commission (1983). The UN Conference on "Environment and Development"
1
T Franks, 1996, ‘Managing sustainable development: definitions, paradigms and dimensions’, Sustainable Development, Vol
4 No
(also known as the "Earth Summit") was held in Rio de Janeiro in 1992, twenty years after the
Stockholm Declaration, and an action plan known as "Agenda 21" was adopted. The goals of
Agenda 21 included eradicating poverty, providing access to healthcare and clean water, and
safeguarding the environment. It should be noted that a number of the Millennium
Development Goals3 (see UNDP) have called for protecting the environment and lowering the
proportion of people living in extreme poverty. Therefore, in order to achieve sustainable
development, economic viable development, socially equitable development, and
environmental protection have all been emphasised at major global conferences and initiatives
on environment and development.
The natural environment contributes directly by providing resources and raw materials like
water, timber, and minerals that are needed as inputs for the production of goods and services,
as well as indirectly through services provided by ecosystems like carbon sequestration, water
purification, managing flood risks, and nutrient cycling. The natural environment also plays a
significant role in supporting economic activity. Therefore, natural resources are essential for
ensuring economic growth and development, both now and in the future. Environmental
protection and economic development have a complicated relationship. A number of factors are
at play, including the size and composition of the economy, particularly the proportion of
services in the GDP as opposed to manufacturing and primary industries, and technological
advancements that have the potential to both drive economic growth and lessen the
environmental effects of production and consumption decisions. A complete decoupling of the
production of goods and services from their environmental impacts is necessary to achieve
sustained economic growth because many essential natural resources and ecosystem services
are scarce or under pressure. This entails utilising natural resources in a sustainable way,
whether through increased resource efficiency or the adoption of cutting-edge manufacturing
processes and product designs. Avoiding critical threshold breaches is another way to ensure
that natural resources continue to support the desired level of economic activity.
Existing commitments to prevent dangerous climate change serve as an example of the need for
complete decoupling because they call for a decrease in greenhouse gas emissions despite a
growing global economy. The UK may be achieving absolute decoupling for many air
pollutants and carbon emissions, according to empirical evidence, but this is not true for all
environmental resources or for all developed economies. Furthermore, the evidence suggests
that changes in the location of production, with many of the goods and services now produced
in other nations, contribute to the decoupling in the UK. This demonstrates the significance of
technology and innovation in reducing environmental impacts—not just in the UK but around
the world—as well as the opportunities it creates for UK businesses and industries.
The long-term trend in economic output over the past 200 years has been unmistakably upward,
despite temporary downturns and setbacks. It has increased employment and income levels and
continues to be a major driver of the necessary level of public and private investment in
technology and infrastructure to support the transition to a low-carbon and resource-efficient
growth path. Additionally, economic development has given developing nations the chance to
raise their game in response to environmental challenges and enhance the standard of living for
their people. The demand for imports from developed economies, investment, and aid all play a
significant part in promoting global economic growth and development.
Combining various forms of capital is necessary for economic growth in order to produce
goods and services. These include natural capital, which is most important, produced capital,
such as the raw materials we extract from the earth and the carbon sequestration services
provided by forests and soils; human capital, such as skills and knowledge; and produced
capital, such as machinery, buildings, and roads. Natural capital changes can potentially be
irreversible, some components have critical thresholds beyond which abrupt and dramatic
changes may happen, some have finite limits, and their effects last for several generations.
Therefore, even though natural capital is used to spur growth, it must be utilised sustainably
and effectively to ensure growth over the long term. This is most obvious in the context of non-
renewable resources like oil and minerals, but the rate of consumption of ecosystem services
like biodiversity and carbon sequestration as well as renewable resources like forests and
fisheries must also be taken into account relative to their rates of recharge and replenishment.
For an economy to grow, capital must be created, whether it be produced, human, social, or
natural. As long as the decision to deplete them reflects the real costs of environmental
resources, taking into account their scarcity and how substitutable they are, and only if adequate
investments are made in other types of capital, declining levels of some natural assets, such as
the use of minerals and metals in manufacturing, can be acceptable. However, interventions to
keep these thresholds from being exceeded must be taken into consideration where
environmental resources have critical limits beyond which they cannot be replaced by other
types of capital.
3.3 Environmental Policy effect for sustainable growth and healthy economy
The nature and severity of the environmental impact being addressed, the policy design chosen,
and the sectors it affects will all have an impact on the economic impact of environmental
policy. Policies that increase the effectiveness with which companies use resources like energy,
water, and materials result in sustainable growth as well as cost savings for companies.
Businesses in the UK, for instance, could save up to £6.4 billion annually by improving their
resource efficiency, which would reduce the amount of waste they produce and the amount of
energy and water they use. In general, measures to properly value environmental resources
may result in an increase in costs soon. This must be weighed against the potential for these
policies to encourage innovation and increased resource efficiency. Environmental policy can
be a powerful innovation driver because it increases certainty about the likely future political
landscape for businesses. The extent to which the environmental impacts being reduced are
reflected in market prices, however, determines the extent to which this produces growth
benefits in the short-term.
There is some evidence that there are short-term trade-offs between environmental regulation
and growth (or productivity), but these effects are typically negligible or even negligible. For
instance, macroeconomic effects of the EU Emissions Trading Scheme were found to be almost
nonexistent in economic modelling of its effects.3
In addition, smart and cost-effective policy design could be used to further reduce any short-
term trade-offs between environmental policy and economic growth. This includes:
• providing a clear regulatory framework for businesses and consumers to operate in,
now and in the future; and
• designing policies in ways that minimise regulatory burdens on the broader economy,
both in terms of administrative and policy costs.
The long-term cost to growth of taking action now to ensure the efficient and sustainable use of
natural resources is probably less than the costs of doing nothing. The costs of preventing
catastrophic climate change, for instance, are estimated by Stern (2006) to range from a 1%
gain to a 3.5% reduction in global GDP in 2050, whereas the costs of failing to do so are
estimated to be much higher - between 5% and 20% of global GDP. By establishing the proper
incentives now, we can change our production and consumption patterns in a way that will
require less drastic and expensive changes down the road.
3
S. Peterson, (2003), “The EU Emission Trading Scheme and its Competitiveness Effects for European Business: Results from
the CGE Model DART”, Kiel Institute for World Economics
In order to maintain a natural environment that promotes wellbeing and permits long-term
economic growth and development, it is crucial to create a consistent, coherent, and effective
environmental policy framework.
This necessitates: comprehending critical thresholds and the potential for significant changes in
the functioning of natural assets; valuing smaller changes in the provision and use of
environmental resources and services and factoring them into economic decisions; investing in
infrastructure and R&D to address market failures while ensuring that it does not compete with
private investment; and removing obstacles to behaviour change and the adoption of cost-
effective measures. Designing effective policies that deliver environmental results and aid in
the economy's pursuit of durable and sustained growth requires addressing these issues. The
purpose of environmental policy is to ensure that natural resources are used wisely, sustainably,
and in accordance with any potential critical thresholds. By doing this, we can guarantee that
natural resources will continue to benefit our wellbeing and foster and support future economic
growth.
Environmental policy can also encourage the adoption of best practises and improvements in
the production process while assisting businesses in realising cost-effective resource savings.
For instance, it's been calculated that companies in the UK could save up to £6.4 billion
annually by implementing free or inexpensive measures to increase their resource
efficiency.4Information dissemination and other measures to remove obstacles from the
business adoption of resource-efficient practises and measures result in financial and
environmental gains.
4
D. Eatherley and S. Slater, (2009), “Competitiveness Improvements Potentially Available from Resource
Efficiency Savings”, report for Defra.
4. BALANCING ENVIRONMENT AND ECONOMIC GROWTH IN UTTARAKHAND
The growth rate of Uttarakhand seems to fully support its creation as a separate state and
supports the justifications for the country's smaller states. The gap between the new state and
the national average is narrowing. While Uttar Pradesh continues to experience annual
economic growth below the national average, Uttarakhand has consistently shown strong
growth. Gross State Domestic Product (GSDP) provisional estimates at constant prices (2004-
05) for the years 2011–12 and 2012–13 were 6086991 lakh rupees and 6635599 lakh rupees,
respectively. The economy of Uttarakhand grew by 10.02 percent annually in 2010–11, 9.35
percent according to a provisional estimate for 2011–12, and quick estimates for 2012–13.
India is one of the most biodiverse nations in the world in terms of sustainable development.
The National Green Tribunal was established by the National Green Tribunal Act of 2010 as
part of India's efforts to achieve sustainability. India's progress towards sustainable
development can best be gauged by looking at life expectancy, which has increased by ten
years, forest cover, another indicator of environmental sustainability, and literacy rate, an
important indicator that directly affects the country's sustainability. India's per capita emissions
are much lower than those of the developed countries, despite the fact that it is one of the top
five emitters of GHGs.5
Due to its location in the heart of the Himalaya, Uttarakhand shares many of the same
environmental issues that other Himalayan states do. Despite having abundant natural and
cultural resources, the area lacks development. Environmental health trends at the moment
imply that current interventions are not viable. People live in fear of natural disasters due to the
mountains' inherent fragility and the Himalaya's increased vulnerability to human-induced
environmental impacts.6 Studies on development interventions and initiatives have been
conducted widely in the area, and many of them have shown how unscientific resource
exploitation is causing environmental degradation to worsen. According to these studies, some
of the major problems, including the pressure of human population and cattle grazing on the hill
areas and the indiscriminate cutting down of trees for commercial purposes, have resulted in a
rapid loss of forest cover and a decline in the productivity of the land, which has harmed the
economic conditions of the hill regions.7
5
P.D. Singh, & Nautiyal, R.R. (2015). Role of Education in Sustainable Development of the Nation. VARTA, 369(1), pp.58-
59
6
Id. Pg-4.
7
S. Bhutia (2014). Economic Development and Environmental Issues in Darjeeling Himalaya of West Bengal. India: A
theoretical perspective. International Journal of Humanities and Social Sciences Invention, 3(7), p.45
Therefore, development based on careless use of natural resources is certain to lead to
decreased productivity of our economic system, which will have an impact on the standard of
living of the planet's inhabitants in the long run. 15 Future development should focus on
sustainability. Natural calamities and disasters are closely related to environmental and energy
sustainability.8
A growing body of research has been done on the recent "greening" of the land use planning
system and how the goal of sustainable development has changed how planners view the
"environment." Unprecedented environmental damage is being experienced by the state, and as
a result, social and economic risks are rising. In the end, it should be concluded that
Uttarakhand, a state in the Himalayas, suffers from environmental degradation in the same way
as other Himalayan states. Numerous changes have occurred since Uttarakhand was created in
2000 as a separate state by carving it out of what is now the state of Uttar Pradesh. During these
seventeen years, Uttarakhand has excelled in growth and development.
5. CONCLUSION
8
P. Sukanchan, (2013). Concept of Sustainability and Development in Indian Perspective: A Vision for the Future. Journal of
Environmental Research and Development, 8(1), p.189.
Asia. It demands development in these areas. However, urbanisation and population density
have a positive impact on social sustainability in Central and East Asia as well as Southeast
Asia. It should be noted that South Asia has a higher population density than two comparable
regions. A high population growth rate has a negative impact on environmental sustainability.
These economies require policies that could aid in eliminating the detrimental effects of these
factors. With the expansion of economic development comes a need to protect the environment.
6. BIBLIOGRAPHY
Ahmad N. (2013). Sustainable Tourism Development in Uttarakhand Region of India.
International Journal of Management and Social Science Research, 2(4), p.108.
Daly H., 1997, ‘Beyond growth: The economics of sustainable development’, Boston, MA:
Beacon Press.
Jain S. (2017). Sustainable Development of the Indian Himalayas. UPSARR, 1(1), p.1.
Peterson S., (2003), “The EU Emission Trading Scheme and its Competitiveness Effects for
European Business: Results from the CGE Model DART”, Kiel Institute for World
Economics.
Raskin R., M. Chadwick, T. Jackson and G. Leach, 1996, The Sustainability Transition:
Beyond Conventional Development, Stockholm: Stockholm Environment Institute Sida,
1995, Promoting Sustainable Livelihoods: a Report from the Task Force on Poverty,
Stockholm: Sida
Ross A. (2009). Modern Interpretations of Sustainable Development. Journal of Law and
Society, 36(1), p.37.
Singh P.D, & Nautiyal, R.R. (2015). Role of Education in Sustainable Development of the
Nation. VARTA, 369(1), pp.58-59.