Environmental Ethics

Poverty, resource, environment

• Poverty cycle – result of lack of resource
• Overuse of natural resources may cause poverty (e.g.; Phillipines)
• Poverty and environmental deterioration are mutually reinforcing
Is economic growth conducive to the
environment ?
• No contradiction between growth and environment, inherently
• However, a high rate of growth may associate with high rate of
environmental pollution.
Global environment: Some basic issues
• Global climate change
• Ozone layer depletion
• Acid rains
• Noise pollution
• Pollution of international waters
• Deforestation
• Soil erosion, radioactive pollution
• Loss of valuable species
• Loss of biodiversity
In 1991, World Bank, UNDP, UNEP identified four major global environmental issues: biodiversity,
climate change, depletion of the ozone layer, problems of international waters.

Following actions may be taken :

1. To converse the biological diversity and to fairly and equitably share the benefits of genetic
resources
2. To control and reduce the harmful effects of desertification and deforestation
3. To protect an enhance wetlands
4. To converse and rationally use the marine living resources
5. To protect the endangered species of flora and fauna from over-exploitation
6. To conserve and effectively manage migratory species
7. To protect the ozone layer, and, phase out the ozone depleting substances
8. To stabilize the emission of greenhouse gases
9. To prevent the dumping of hazardous waste
10. To regulate the quantity / quality aspects of international waters
Global inequalities in the management of environmental problems

• Conflict between the interests of DCs & LDCs

• DCs have been given the power to increase the production of CFCs,
under Montreal Protocol.
• LDCs get affected financially to reduce CFC production.
• Polluters must pay !
 Ethical rooting

Strong Poor

Strong profit motive ER > PM = Env. Care Env. Degradation

PM > ER= Env. Degradation

Normal profit motive Env. Care and Support Indifference (Amoral)

Climate change and other agents of pollution
• OECD countries generate between 300 and 800 million tons of
hazardous wastes.
• US alone contributes 88% of the above amount.
• Only 10% of the world’s fresh water is polluted in terms of diminished
oxygen content.
Air pollution
Who Report says, each year, more than 2.5 million people die of air-
borne diseases.
For every 1% of loss of ozone, the risk of skin cancer will increases by
6% (GEO Year Book, 1997)
Urban areas are more polluted than rural areas.
 Pollution Index 2018
Rank City Pollution Index

1 Kabul, Afghanistan 97.79

2 Ghaziabad, India 97.67
3 Tetovo, Macedonia 97.57
4 Faridabad, India 95.89
5 Kathmandu, Nepal 95.78
6 Cairo, Egypt 94.74
7 Kanpur, India 94.69
8 Ho Chi Minh City, Vietnam 94.60
9 Karachi, Pakistan 94.51
10 Dhaka, Bangladesh 94.15
11 Ulaanbaatar, Mongolia 93.68
12 Hanoi, Vietnam 92.62
13 Noida, India 92.28
14 Delhi, India 92.25
15 Varanasi, India 91.93
16 Beijing, China 91.90
17 Gurgaon, India 91.80
18 Yangon, Myanmar 91.30
19 Allahabad, India 91.14
20 Manila, Philippines 91.0
Environmental pollution in India

• Bhopal Gas Tragedy 1984

• India generates USD 1.5 billion worth of e-waste , 30% of which IT
industry contributes.
• Most of the rivers in Gujarat near chemical corridor are polluted
• Adverse effects of endosulfan on the cashew nut plantation in Kerala
Social cost of pollution
• Externality is an influence that does not come from the institution of
market but affects the welfare of a person either adversely or
favorably. Externality adversely affect the economic efficiency.
• Air pollution is a negative externality.
• Vaccination is a positive externality.
• In case of negative externality, social cost is higher than private cost.
i.e.; marginal social cost is higher than marginal private cost.
•
Ethical issues in environmental pollution/ damage
• Negative environmental externalities impose extra cost on the poor people who are affected by
pollution. Negative externalities lead to market failure because the market mechanism cannot
account for them. As a result, market price does not show the real worth of a commodity. There
are misallocation of resources.
• As most of the poor people depend on forest for the environmental resources for their livelihood,
it is morally unjust to destroy or damage such resource.
• It is basic human right to enjoy a clean and healthy environment. Environment pollution creates
threat to human health, thus, is unethical.
• Pollution increases cost of production (if the social cost is included) and reduces the output. Both
are socially undesirable.
• Many a times, polluters exploit the loopholes in the system and regulatory capture.
• Environment pollution occurs due to overuse of natural resource.
• Environment pollution creates threat to our next generation
• Environment pollution poses threat to ecological balance
• Environment pollution leads to hedonic injustice by distorting the prices of land, houses, and
other habitats.
Management of environment pollution
• Corrective pigovian tax may be imposed by the government on the
polluter
• Government regulation may be resorted in 2 cases: (i) to impose the
correct dose of taxation on the polluter and (ii) merger of polluting
firms and the victimized firms
• Market for pollution rights by permitting polluters to pay fees for the
pollution. Such fees can be correlated to the pollution damage.
• Internationalization of externalities may be adopted by forcing the
polluters to take account of the costs they impose on others.
• Creating property rights can internalize negative externality.
 Examples of pigovian tax
• The gasoline tax is Pigouvian. It seeks raise the driver's cost to cover the negative externalities created by the
automobile. The money collected is used for maintenance and safety measures in highways in USA
• France levies a Pigouvian noise tax on airplanes at its nine busiest airports. Use the revenue for to soundproof
houses that are exposed to noise levels beyond 70 decibels.
• Carbon taxes are Pigouvian.  They increase the costs to carbon emitters who don't pay for the environmental
damage.  The tax corrects this externality by raising the price to reflect this social cost.
• In 2002, Ireland taxed plastic bags
• In 2003, the city of London launched a Congestion Charge for driving in central ( 9-12 pounds)
• In 2008, British Columbia introduced a carbon tax. It covers 70 percent of the province's greenhouse gas
emissions.

Source: https://www.thebalance.com/pigouvian-tax-definition-and-examples-4157479
Article : Pigouvian Taxes, Their Pros and Cons, and Whether They Work- BY KIMBERLY AMADEO Updated
September 12, 2018.