ENVIRONMENTAL ECONOMICS

The environment plays an essential role in shaping our economic and social welfare. The environment

Provides services to consumers in the form of living and recreational spaces and the opportunity
to enjoy utility from experiencing natural landscapes and habitats.

It provides us with the natural resources necessary to sustain production and

consumptionincluding the basis for renewable and non-renewable sources of energy.

It is a dumping ground for the waste products of our society - be it waste from producers or from
households and consumers.

The link between economic activity and our environment is fundamental. We hear constantly about the
need for sustainable welfare, for growth to take into account the direct and indirect effects on our
resources. And increasingly we, as producers and consumers, are affected by government policies and
strategies designed to promote environmental protection and improvement.
Sustainable development is that which meets the needs of the present without compromising the ability of
future generations to meet their own needs.
Externalities and the environment the basics
For environmental economics, one of the most important market failures is caused by negative
externalities arising from production and/or consumption of goods and services.
Externalities are third party effects arising from production and consumption of goods and services for
which no appropriate compensation is paid.
Externalities occur outside of the market i.e. they affect people not directly involved in the production
and/or consumption of a good or service. They are also known as spill-over effects.
One of the major problems facing the environment is that common resources such as fish stocks and
grazing land are not privately owned commonly owned resources may lack the protection of property
rights and are susceptible to over-exploitation because the marginal cost of extracting the resource for a
private agent is close to zero. This is known as the tragedy of the commons.
When there are environmental externalities, the private equilibrium price and quantity determined by the
interaction of market supply and demand is not the same as the social equilibrium which includes all
internal and external costs.
In a free market, a producer will have little direct incentive to control pollution because it is external i.e.
the profit-maximising supplier considers only his/her own private costs and benefits.
The market failure arising from negative externalities is shown in the diagram below. The area labelled
ABC is the deadweight loss of welfare due to output being above the social optimum. At output levels
beyond Q2, the marginal social cost exceeds the marginal social benefit causing overall welfare to drop.

Economists argue that market failures provide a clear rationale for policy intervention to improve
efficiency. But since market failures are pervasive, intervention is only justified if the benefits exceed the
costs. As we shall see, reducing pollution is rarely, if ever, a cost-free process.
Refer to pdf 001600 for nature and scope

Enivromental policy design

Environmental policy design is the process of addressing surrounding environmental parameters when
devising plans, programs, policies, buildings, or products. Classical prudent design may have always
considered environmental factors
Policies to protect environment in India

*Environment Protection Act, 1986 - In the wake of Bhopal tragedy, the Government of India
enacted the Environment (Protection) Act, 1986 (EPA) under article 253 of the constitution he
potential scope of the Act is broad, with environment defined to include water, air and land and the
inter-relationships which exist among water, air and land, and human beings and other living
creatures, plants, micro-organisms and property. Environment protection rules were also enacted as a
corollary to this Act.

*National Conservation Strategy and Policy Statement on Environment and Development, 1992 The National Conservation Strategy and the Policy Statement on Environment and Development are
in response to the need for laying down the guidelines that will help to weave environmental
considerations into the fabric of our national life and of our development process. It is an expression
of Indias commitment for reorienting policies and action in unison with the environmental
perspective. It also views development policies from environmental perspectives and the support
policies and systems required.

*Policy Statement for the Abatement of Pollution, 1992 - The Policy Statement for Abatement of
Pollution, adopted in 1992 lays emphasis on pollution prevention in place of the conventional end-ofthe-pipe treatment also identified the adoption of best available and practicable technologies as the
key element for pollution prevention. pollution prevention and control is, therefore, on such issues
such as promotion of clean and low waste technologies, waste minimization, reuse or recycling,
improvement of water quality, environment audit, natural resource accounting, development of mass
based standards, institutional and human resource development etc. The whole issue of pollution
prevention and control is dealt with by a combination of command and control methods as well as
voluntary regulations, fiscal measures, promotion of awareness etc

*National Environment Policy, 2006 A diverse developing society such as India provides numerous
challenges in the economic, social, political, cultural, and environmental arenas. All of these coalesce in
the dominant imperative of alleviation of mass poverty, reckoned in the multiple dimensions of livelihood
security, health care, education, empowerment of the disadvantaged, and elimination of gender disparities.
The present national policies for environmental management are contained in the National Conservation
Strategy and Policy Statement on Environment and Development 1992, Policy Statement on Abatement
of Pollution 1992, National Agriculture Policy 2000, National Population Policy 2000 and National Water
Policy, 2002 have also contributed towards environmental management. All of these policies have
recognized the need for sustainable development in their specific contexts and formulated necessary
strategies to give effect to such recognition. The National Environment Policy seeks to extend the
coverage, and fill in gaps that still exist, in light of present knowledge and accumulated experience. It
does not displace, but builds on the earlier policies. Sustainable development concerns in the sense of
enhancement of human well-being, broadly conceived, are a recurring theme in Indias development
philosophy. The present day consensus reflects three foundational aspirations. First, that human beings
should be able to enjoy a decent quality of life; second, that humanity should become capable of
respecting the finiteness of the biosphere; and third, that neither the aspiration for the good life, nor the
recognition of biophysical limits should preclude the search for greater justice in the world. The National
Environment Policy is also a response to Indias commitment to a clean environment, mandated in the
Constitution in Articles 48 A and 51 A (g), strengthened by judicial interpretation of Article 21. It is
recognized that maintaining a healthy environment is not the states responsibility alone, but also that of
every citizen. A spirit of partnership should thus be realized throughout the spectrum of environmental
management in the country. While the state must galvanize its efforts, there should also be recognition by
each individual natural or institutional, of its responsibility towards maintaining and enhancing the
quality of the environment.

*Vision Statement on Environment and Health - The purpose of vision document was to evolve a strategy
of health-risk reduction arising from environment pollution would help the implementing agencies to
revise the environmental and industry specific actions. The Conference on Environmental Health
organized by Ministry of Environment and Forests in November, 2002 also brought out thrust areas and
action points that need to be implemented for protection of public health.
The environment in which we live greatly influences our health. The household, workplace, outdoor and
indoor environments may pose risks to health in a number of different ways. The poor quality of air
which we may breathe, the contaminated water we may drink and the surroundings in which we live,
determine our quality of life. While the genetic factors may also be responsible for causing diseases but
the environmental factors play much more active role in contracting various diseases. The key purpose of
this Vision Statement on Environment and Human Health is to evolve a strategy for health risk reduction.
It also offers a comprehensive approach to the environmental health management plans, which would be a
systematic approach to estimate the burden of disease and injury due to different environmental
pollutants. Therefore, the activities and programmes required to be taken up for the protection of the
public health due to environmental pollution are also given in this statement in the form of a road map.
Central Pollution Control Board (CPCB) of India is a statutory organization under the Ministry of
Environment and Forests (MoEF). It was established in 1974 under Water (Prevention and Control of
Pollution) Act, 1974. CPCB is also entrusted with the powers and functions under the Air (Prevention
and Control of Pollution) Act, 1981. It serves as a field formation and also provides technical services
to the Ministry of Environment and Forests of the provisions of the Environment (Protection) Act,
1986. It Co-ordinate the activities of the State Boards by providing technical assistance and guidance
and resolve disputes among them. It is an apex organization in country in the field of pollution
control, as technical wing of MoEF.[4][5] The board is led by its chairman, who is nominated by
the Central Government.[6] The current acting chairman is Shri Shashi Shekhar.[7]
The main function of the Pollution Control Board is to improve the quality of air, promote cleanliness of
water bodies and to prevent pollution.
If may also perform the following functions:
1. Advise the Government on prevention and control of pollution.
2. Carry out and encourage investigations and research relating to pollution problems.
3. Plan and organize training programmes for persons involved in prevention and control of pollution.
4. Organize through mass media, a comprehensive programme regarding pollution and control.
5. Collect, compile and publish technical and statistical data, manuals, codes and guides.
6. Establish or recognize laboratories for analyzing pollution parameters.

7. Advise the Government regarding the suitability of any site for the location of industry.
8. Issue environmental no objection certificate to start an industry.
9. Inspect and review sewage or industrial effluent treatment plants and to grant consent.
10. Prescribe effluent quality standards and the quality of receiving waters resulting from the discharge of
effluents.
11. Evolve economical and reliable methods of treatment, utilization, and disposal of sewage and
industrial effluent with regard to soil, climate and water resources of the region under consideration.
12. Inspect air pollution control areas to assess the quality of air and to take steps for prevention of
pollution.
13. Lay down standards for the quality of air and emission of air pollutants into the atmosphere, to frame
rules and regulations to improve the quality of environment.
14. Regulate and control noise producing and generating sources.
15. Monitor the compliance of the standards regarding ground water, ambient air, leachate quality,
compost quality and incineration standards.
16. Close down a defaulting industrial plant or withdraw its supply of power or water.
Functions of the State Boards:
Under Section 7-B, the following are the functions of a State Board:
(a) Planning a comprehensive programme for prevention, control and abatement of pollution of streams
and wells.
(b) Advising the State Government regarding water pollution control or location of industries.
(c) Conducting and encouraging investigations and research relating to different aspects of water
pollution.
(d) To collaborate with the Central Board for training personnel for handling water pollution programmes
and organising related mass education programmes.

(e) Inspecting trade effluents and waste water treatment plants.

(f) Prescribing effluent standards for the sewage and trade effluents.
(g) Evolving economical and reliable methods of disposal, treatment and reuse of waste water (in
agriculture).
(h) Laying down the standards of treatment of sewage and trade effluents to be discharged into any
stream.
(i) Making, varying or revoking any order for preservation or control of discharge of waste into streams
and wells or construction of systems for disposal of effluents.
(j) Establishing or recognising laboratories for analysis of samples.
(k) Performing such functions as may be entrusted by Central Board or State governments.

Environmental legislation
The Government of India has formulated comprehensive legislations to enable the institutions like
pollution control boards to effectively protect the environment. A list of laws is given below:
1. The Water (Prevention and Control of Pollution) Act, 1974, as amended up to 1988.
2. The Water (Prevention and Control of Pollution) Cess Act, 1977.
3. The Water (Prevention and Control of Pollution) Cess Rules, 1978.
4. The Air (Prevention and Control of Pollution) Act, 1981.
5. The Environment (Protection) Act, 1986.
6. The Environment (Protection) Rules, 1986.
7. Environmental impact Assessment of Notification, 1994.

8. Hazardous Wastes (Management and Handling) Rules, 1989.

9. Manufacture, Storage and Import of Hazardous Chemical Rules, 1989.
10. Manufacture, Use, Import, Export and Storage of Hazardous Micro-Organisms Genetically
Engineered Organisms or Cells Rules, 1989.
11. Scheme of Labeling of Environment Friendly Products (ECO-MARKS)-Resolution 1991.
12. Bio-Medical Waste (Management and Handling) Rules, 1998.
13. The National Environment Tribunal Act, 1995.
14. The National Environmental Appellate Authority Act, 1997.
15. The Public Liability Insurance Act, 1991.
16. The Public Liability Insurance Rules, 1991.
17. National Forest Policy, 1988.
18. Forest (Conservation) Act, 1980.
19. Forest (Conservation) Rules, 1981.
20. Re-cycled Plastics Manufacture and Usage Rules, 1999.
21. Coastal Regulation Zone-Notifications, 1991.
22. Environment (Sitting for Industrial Projects) Rules, 1999-Notification.
23. Dumping and Disposal of Flyash-Notification.
24. Noise Pollution (Regulation and Control) Rules, 2000.
25. Municipal Solid Wastes (Management & Handling) Rules, 2000.
26. Ozone Depleting Substances (Regulation) Rules, 2000.
The Water (Prevention and Control of Pollution) Act, 1974

The Water Act was passed by the parliament in 1974. This act suggests that only state governments can
enact water pollution legislation. As per the act, a state board for the prevention and control of water
pollution was constituted in each state for implementation of the act.
It empowers these boards to establish and enforce effluent standards for factories discharging pollutants
into water bodies. The boards control sewage and industrial effluent discharges by approving, rejecting or
conditioning applications for consent to discharge. After the 1988 amendment, the board is empowered to
close a defaulting industrial plant or withdraw its supply of power or water.
The Water (Prevention and Control of Pollution) Cess Act, 1977
An act to provide for the levy and collection of a cess (tax) on water consumed by certain industries and
local authorities, with a view to augment the resources of the Central Board and State Board to implement
the Water Act. The Act gives a polluter a 25% rebate of the applicable cess upon installing effluent
treatment equipment and meeting the norms.
The Environment (Protection) Act, 1986
In the wake of the Bhopal tragedy, the Government of India enacted the Environment (Protection) Act of
1986 under Article 253 of the constitution the Environment Protection Act prohibits the discharge or
emission of pollutants in excess of the prescribed standards. To implement this mandate, the Government
has framed the Environment (Protection) Rules of 1986 (EPR). Broadly, there are three types of
standards:
a. Source standards, which require the polluter to restrict at source, the emission and discharge of
pollutants.
b. Product standards, which fix pollution norms for new manufactured products such as cars.
c. Ambient standards to set maximum pollutant loads in the air.
2. The important measures taken by the government to control air pollution are:
a. The ambient air quality of various cities and towns is monitored regularly through a network of 290
monitoring stations under the National Ambient Air Quality Monitoring Programme.
b. Ambient air quality standards and emission standards for industrial units have been notified.
c. Emissions from highly polluting industrial units and thermal power plants are regularly monitored and
action is taken against the defaulting units.

d. Unleaded petrol is now being supplied to the entire country with effect from February 2000. Sulphur is
being progressively reduced in diesel. Fuel quality standards for petrol and diesel have been notified.
e. Gross emission standards for on-road vehicles and mass emission standards for all categories of new
vehicles have been notified under the Central Motor Vehicles Rules, 1989.
Fiscal incentives are provided for installation of pollution control equipment.
Hazardous Wastes (Management and Handling) Rules, 1989
These rules enlist 18 categories of hazardous waste along with their regulatory quantity (Refer Table 7.1).
Industries generating any of these wastes beyond the regulatory quantity are required to seek
authorization from the concerned state pollution control board for its temporary storage in the premises
and their disposal.
Noise Pollution (Regulation and Control) Rules, 2000
Noise pollution has become a major problem in the metropolitan cities and in other urban areas. With a
view to regulate and control noise producing and generating sources, the Ministry of Environment and
Forests has notified the Noise Pollution (Regulation and Control) Rules, 2000 under the Environment
(Protection) Act 1986, for prevention and control of noise pollution in the country.
The Notification seeks to control noise from various sources, inter-alia, industrial activity, construction
activity, generator sets, loud speakers, public address systems, music systems, vehicular horns and other
mechanical devices that have deleterious effects on human health and psychological well being of the
people; it is considered necessary to regulate and control noise producing and generating sources with the
objective of maintaining the ambient air quality standards in respect of noise.
Scheme of Labeling of Environment Friendly Products (ECO-MARKS)-Resolution 1991
The Government has decided to institute a scheme on Labelling of Environment Friendly Products. The
scheme will operate on a national basis and provide accredition and labelling for household and other
consumer products which meet certain environmental criteria along with quality requirements of the
Indian Standards for those products. The label shall be known as the "ECOMARK".
Any product which is made, used or disposed of in a way that significantly reduces the harm it would
otherwise cause to the environment could be considered as an Environment Friendly Product.
The specific objectives of the scheme are as follows:
(i) To provide an incentive for manufacturers and importers to reduce adverse environmental impact of
products.

(ii) To reward genuine initiatives by companies to reduce adverse environmental impact of their products.
(iii) To assist consumers to become environmentally responsible in their daily lives by providing
information to take account of environmental factors in their purchase decisions.
(iv) To encourage citizens to purchase products which have less harmful environmental impacts.
(v) Ultimately to improve the quality of the environment and to encourage the sustainable management of
resources.
The Public Liability Insurance Act, 1991
This was enacted to provide immediate relief to the victims of an accident involving hazardous substance.
The act obligates every owner (a person who owns or has a control over handling hazardous substance) to
take.
One or more insurance policy, before he starts handling hazardous wastes, whereby, he is insured against
liability to give relief to those affected by any accident, death or injury or damage. Relief in also
quantified in this Act
The Recycled Plastics Manufacture and Usage Rules, 1999
1. Carry bags and containers made of recycled plastics shall not be used for storing, carrying, or packing
of food stuff.
2. Carry bags and containers made of virgin plastic shall be in natural shade or white.
3. Carry bags and containers made of recycled plastic and used for purposes other than storing foodstuff
shall be manufactured using pigments and colourants sis per IS 9833,1981
4. Recycling of plastics shall be in accordance with IS 14534, 1998.
5. The recycled plastic carry bags and containers shall be marked as 'recycled' along with the indication of
the percentage of use of recycled material.
6. The minimum thickness of carry bags made of virgin or recycled plastics shall be 20 microns.
Municipal Solid Wastes (Management & Handling) Rules, 2000
As per this act, municipal solid waste includes commercial and residential wastes generated in municipal
or notified areas in either solid or semi-solid form excluding industrial hazardous wastes but including
treated bio-medical wastes.

Any municipal solid waste generated in a city or a town, shall be managed and handled in accordance
with the compliance criteria and the procedure lay down
Any product which is made, used or disposed of in a way that significantly reduces the harm it would
otherwise cause to the environment could be considered as an Environment Friendly Product.
The specific objectives of the scheme are as follows:
(i) To provide an incentive for manufacturers and importers to reduce adverse environmental impact of
products.
(ii) To reward genuine initiatives by companies to reduce adverse environmental impact of their products.
(iii) To assist consumers to become environmentally responsible in their daily lives by providing
information to take account of environmental factors in their purchase decisions.
(iv) To encourage citizens to purchase products which have less harmful environmental impacts?
(v) Ultimately to improve the quality of the environment and to encourage the sustainable management of
resources.
The Public Liability Insurance Act, 1991
This was enacted to provide immediate relief to the victims of an accident involving hazardous substance.
The act obligates every owner (a person who owns or has a control over handling hazardous substance) to
take.
One or more insurance policy, before he starts handling hazardous wastes, whereby, he is insured against
liability to give relief to those affected by any accident, death or injury or damage. Relief in also
quantified in this Act
The Recycled Plastics Manufacture and Usage Rules, 1999
1. Carry bags and containers made of recycled plastics shall not be used for storing, carrying, or packing
of food stuff.
2. Carry bags and containers made of virgin plastic shall be in natural shade or white.
3. Carry bags and containers made of recycled plastic and used for purposes other than storing foodstuff
shall be manufactured using pigments and colourants as per IS 9833,1981
4. Recycling of plastics shall be in accordance with IS 14534, 1998.

5. The recycled plastic carry bags and containers shall be marked as 'recycled' along with the indication of
the percentage of use of recycled material.
6. The minimum thickness of carry bags made of virgin or recycled plastics shall be 20 microns.
People's Participation in Environmental Protection
The success of India's environmental programmes depends greatly on the awareness and consciousness of
the people. A National Environmental Awareness Campaign has been launched to sensitise the people to
the environmental problems through audio-visual programmes, seminars, symposia, training programmes,
etc.
International conventions and protocols
There are some issues of local importance which can be solved at the local or regional level. For example,
the pollution of a river which flows in one country can be handled by the government of that country
because it principally affects its citizens only.
But some issues such as global warming and climate change have a wide scope and international
cooperation is needed to solve them. International and regional organizations play an important role in
solving these problems, often coordinating with many governments.
The Montreal Protocol, signed in 1987, set up a time table for diminishing the ozone- depleting gases,
especially chlorofluorocarbons (CFCs) and the bromine compounds. The follow- up meet in Copenhagen
discussed the provisions on the quicker phase-out of the above said chemicals.
The ozone issue was a simpler one, which could be tackled with little impact on economies and lifestyles.
Moreover, its causes were clear-cut and the principal dangers were foreseen with more confidence. Hence
the governments moved quickly into action.
The Earth Summit: Rio de Janiero, 1992
But another issue like the global climate change is a very complex issue with no obvious reasons. The
end-results of the many adaptive responses too have been controversial.
The costs of adopting these mitigating features too are prohibitive. Moreover, the inviolable nature of any
action plan adopted by the United Nations has also proved to be an obstacle. Hence many countries have
started to avoid and delay the process of implementation of these action plans.
When the 20th United Nations Conference on the Environment and Development convened in Rio de
Janeiro, 'Global Climate Change' was the most important issue at hand this conference, also known as the

'Earth Summit', adopted the 'Agenda 21'. A total of 154 countries were signatory to the agenda, which has
four key elements.
1. The objective of the convention was to stabilize greenhouse gas levels in the atmosphere within a
timeframe, sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food
production is not threatened and to enable sustainable economic development.
2. Developed countries were to take the lead in reducing greenhouse gases.
3. No precise emission-reduction targets were set nor was there any system to punish violators.
4. Countries were to meet regularly at meetings referred to as 'Conference of Parties' (COP) to discuss the
implementation of part.
COP-1: Berlin, 1995
At the first COP in Berlin, Germany, members adopted the Berlin Mandate. This Mandate committed
developed nations to the following:
The elaboration of national policies and measures to limit and reduce greenhouse gas emissions.
The setting of specific targets and timeframes for greenhouse gas limitation and reduction.
COP-2: Geneva, 1996
At the second COP in Geneva, Switzerland, members adopted the Ministerial Declaration. This
Declaration firmly stated that the science of climate change was compelling and that legally binding
commitments were warranted. The Declaration was in response to private- sector corporations and
individuals who suggested that science of global climate change was uncertain and that action was
unwarranted.
COP-3: Kyoto, 1997
At the third COP in Kyoto, Japan, member countries adopted the Kyoto Protocol. The Protocol provided
for the following:
1. Greenhouse emission-reduction targets for each country.
2. A greenhouse gas emission-trading program.
3. Further meetings to establish penalties for failure to meet targets and the rules and regulations of the
new emission trading program.

COP-4: Buenos Aires, 1998

At the fourth COP in Buenos Aires, Argentina, the parties adopted the Buenos Aires Plan of Action. The
Plan sets out a list of 140 items to advance the implementation of the convention and to flesh out the
operational details of the Kyoto Protocol.
At the conference, the parties agreed to a 2-year action plan for advancing the agenda set in the Kyoto
Protocol. This conference paved the way for the active participation of developing nations in the process
to address climate change. Argentina, the host, itself took the lead in announcing its intention to reach the
emission targets for the 2008-2012 period.
Moreover, participating countries were more interested in adopting and INVESTING in clean
technologies like the Clean Development Mechanism. These technologies are safer and impose less
burden on the environment.
COP-5: Bonn, 1999
At the fifth COP in Bonn, Germany, the parties began work on the Buenos Aires Plan of Action.
1. Countries clarified their intention to complete work on definition of forestry activities under the
Protocol and the role of conservation and management of forests, agricultural soils, and grasslands.
2. Countries came to a common understanding of the basic elements of an effective penalty system.
3. Argentina became the first developing country to announce a binding emissions target for the 20082012 time period.
COP-6 (Part I): The Hague, 2000
The sixth COP in the Netherlands ended without any further agreements being reached on the
implementation of the Kyoto Protocol. Countries agreed to reconvene in Bonn in 2001 to resume COP-6.
COP-6 (Part II): Bonn, July 2001
At COP-6 (Part II) in Bonn, Germany, the parties adopted the Bonn Agreements on the Implementation of
the Buenos Aires Plan of Action. The agreement covered four principal areas:
a. The operating rules for emissions trading and other market-based mechanisms established under the
Protocol.
b. How 'sinks' will be credited toward Kyoto emission targets. Sinks are natural processes that reduce
greenhouse gases in the atmosphere (i.e., emphasis on reforestation).

c. Funding to help developing countries combat and cope with climate change.
d. Mechanisms to encourage and enforce compliance with emissions targets.
2. Although the agreement resolved most of the high-profile issues, it did not tackle many of the more
technical issues under the Kyoto Protocol, including the details of the emissions trading system and other
flexibility mechanisms. Completion of these more technical details was deferred to COP-7 in Marrakech.
COP-7: Marrakech, November 2001
At COP-7 in Marrakech, Morocco, parties adopted the Marrakech Accords. These Accords dealt with the
more technical issues under the Kyoto Protocol, including:
Operating rules for international emissions trading and the Protocol's two other flexibility mechanisms
(the Clean Development Mechanism and Joint Implementation).
A penalty system for failing to meet an emissions target. The issue of whether the consequences are
legally binding was deferred.
The Marrakech Accords effectively completed the work under the Buenos Aires Plan of Action and set the
stage for countries to ratify the Protocol and bring it into force. The United States participated in the
Conference but reaffirmed that it did not intend to ratify the Protocol.
Following Marrakech
With the Marrakech Accords, the Kyoto Protocol was now ready to be brought into force. However,
without the United States, entry into force may be difficult. It would require ratification by almost all
developed countries, including the European Union, Russia and Japan. Furthermore, following
Marrakech, the United States developed its own parallel approach to greenhouse gas emissions and began
seeking support from other countries for this alternative approach.
COP-8: New Delhi, 2002
COP-8 was held in New Delhi, India, October 23 to November 1, 2002. The conference resulted in the
Delhi Declaration, which included technical issues, such as methods to measure emission of greenhouse
gases, as well as recognized several general principles, such as the continued threat of global warming,
the need for cooperation between the rich and poor countries over climate change, and the need for
environmental policy to take economic and social development into account.
The declaration underscored a growing international division. Developed nations such as the European
Union have been pushing for developing nations such as India and China to do more to cut down their
emissions of greenhouse gases. Developing nations, in turn, have refused to make such commitments

unless there is financial support and special consideration of the impact of environmental policy on the
economies of developing nations. These divisions were exacerbated by the United States, which has
refused to ratify the Kyoto Protocol and has sought an alternative global regime consistent with its own
policies on climate control.
COP-9: Milan, 2003
COP-9 was held in Milan, Italy, December 1-12, 2003. Important agreements made at the conference
include:
Creation of a new Special Climate Change Fund (SCCF), which is designed to help developing countries
adapt to climate change. The SCCF will fund qualified projects in poor countries relating to activities like
water and land resource management, fragile ecosystem protection, and integrated coastal zone
management.
Finalization of regulations for how to account for carbon sinks. A carbon sink is anything that absorbs
carbon dioxide from the atmosphere. This predominantly includes forests. Under the regulations,
countries may use carbon sinks as credit in meeting their carbon emission targets.
Two other documents resulted from the Earth Summit the Rio de Janiero: a convention of biodiversity and
another on climate change.
The United Nations Framework Convention on Climate Change
The United Nations Framework Convention on Climate Change entered into force on 21st March 1994,
after being ratified by 50 states. The Convention's general objective is the "stabilization of greenhouse gas
concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with
the climate system". To achieve this, the Convention elaborates legally binding commitments in three
categories: (1) those to be undertaken by all parties; (2) those that apply to OECD countries, except
Mexico, the EEC and eleven countries that are undergoing transition to a market economy; and (3) those
to be undertaken by OECD countries except Mexico and the EEC. Commitments that apply to all parties
are:
1. Preparation and communication to the COP of national inventories of greenhouse gas emissions caused
by human activity using comparable methodologies.
2. Development and communication to the COP of programs to mitigate effects of greenhouse gases and
measures of adaptation to climate change.
3. Cooperation on technology related to greenhouse gas emissions for all relevant sectors.
4. Sustainable management of greenhouse gas sinks and reservoirs.

5. Cooperation in preparing for adaptation to the impacts of climate change.

6. Integration of climate change consideration with other policies.
7. Research to reduce uncertainties concerning scientific knowledge of climate change, the effects of
phenomenon and the effectiveness of responses to it; and exchange of information, on matters such as
technology and the economic consequences of actions covered by the convention.
The Kyoto Protocol on Climate Change and the COP-4
As the COP-4, the Kyoto Protocol has a large significance in the global climatic control; it has been
elaborately discussed here.
The Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change
held a conference in Kyoto, Japan on December 1-11, 1997 to agree on a plan to reduce greenhouse gas
emissions. The agreed to plan makes use of global free market forces to protect the environment. The
Kyoto Protocol will be open for signature in March 1998. To enter into force, it must be ratified by at
least 55 countries, accounting for at least 55% of the total 1990 carbon dioxide emissions of developed
countries.
Key Aspects of the Kyoto Protocol
A set of binding emissions targets for developed nations. The specific limits vary from country to country.
Examples of specific limits: 8% below 1990 emission levels for the European Union countries, 7% for the
United States and 6% for Japan.
a. Emission targets are to be reached over a five-year budget period, the first budget period being 20082012.
b. The emission targets include major greenhouse gases: carbon dioxide, methane, nitrous oxide, and
synthetic substitutes for ozone-depleting CFCs.
c. Activities that absorb carbon (sinks), such as planting trees, will be offset against emissions targets.
d. International emission trading will be allowed. Countries that have met their targets for emission
reduction and have room to spare can sell emission permits to companies or countries. Emissions trading
can provide a powerful economic incentive to cut emissions while also allowing important flexibility for
taking cost-effective actions.
e. Countries with emission targets may get credit towards their targets through project-based emission
reductions in other such countries. The private sector may participate in these activities.

2. Through the Clean Development Mechanism (CDM) developed countries will be able to use certified
emissions reductions from project activities in developing countries to contribute to their compliance with
greenhouse gas reduction targets. Certified emissions reductions achieved starting in the year 2000 can
count toward compliance with the first budget period.
3. The Protocol identifies various sectors (including transport, energy, agriculture, forestry and waste
management) in which actions should be considered in developing countries to combat climate change
and provides for more specific reporting on actions taken.
4. The protocol contains several provisions intended to promote compliance.

Pollution and urbanization

The promise of jobs and prosperity, among other factors, pulls people to cities. Half of the global
population already lives in cities, and by 2050 two-thirds of the world's people are expected to live in
urban areas. But in cities two of the most pressing problems facing the world today also come together:
poverty and environmental degradation.
Poor air and water quality, insufficient water availability, waste-disposal problems, and high energy
consumption are exacerbated by the increasing population density and demands of urban environments.
Strong city planning will be essential in managing these and other difficulties as the world's urban areas
swell.
Much of air pollution is concentrated in and around urban areas, where automobiles and industry emit
mass amounts of waste into the environment. Visible air pollution, known as smog, is present in nearly all
urbanized areas. Not only are humans affected adversely by bad air quality, animals also suffer. Air
pollution can also curb vegetation growth and reduce crop yields. Air pollution from human activities
harm all living creatures in the urbanized world. In the process of urbanization, raw land is converted and
covered with pavement. This causes an increase in the amount of runoff after rainfall leading to flash
floods. Urban runoff can also carry polluted water from cities to streams and oceans, disturbing
environments even outside the city.
Threats

Intensive urban growth can lead to greater poverty, with local governments unable to provide
services for all people.
Concentrated energy use leads to greater air pollution with significant impact on human health.

Automobile exhaust produces elevated lead levels in urban air.

Large volumes of uncollected waste create multiple health hazards.

Urban development can magnify the risk of environmental hazards such as flash flooding.

Pollution and physical barriers to root growth promote loss of urban tree cover.

Animal populations are inhibited by toxic substances, vehicles, and the loss of habitat and food
sources.
Solutions
Combat poverty by promoting economic development and job creation.

Involve local community in local government.

Reduce air pollution by upgrading energy use and alternative transport systems.

Create private-public partnerships to provide services such as waste disposal and housing.

Plant trees and incorporate the care of city green spaces as a key element in urban planning.

Global warming and the greenhouse effect

Earths atmosphere works something like a giant glass greenhouse. As the suns rays enter our
atmosphere, most continue on down to the planets surface. When they hit the soil or surface waters, those
rays release much of their energy as heat. Some of this heat then radiates back into space.
However, several gases in Earths atmosphere such as carbon dioxide, methane and water vapor
work like a blanket to retain much of this heat. That helps to warm our atmosphere. The gases do this by
absorbing the heat and radiating it back to Earths surface. Such gases are nicknamed greenhouse gases
because of their heat-trapping effect. Without this so-called greenhouse effect, Earth would be too cold to
support most forms of life.
But you can have too much of a good thing. Carbon dioxide is released when people use fossil fuels, such
as coal, oil and natural gas. These fuels come from the ancient remains of plants and animals. Products of
these fossil fuels, such as gasoline and diesel fuel, power most of the engines that drive cars, airplanes and
ships. Coal and other fossil fuels are also burned to run electricity-generating plants that power factories,
homes and schools.
The rise in carbon dioxide is essentially entirely due to the burning of fuelsPeople have further increased
the levels of greenhouse gases in the air by changing the landscape. Plants take up carbon dioxide to make
food in a process called photosynthesis. Once cut down, plants can no longer take in carbon dioxide. One
result: This gas can begin building up in the air instead of fueling the growth of plants. So by cutting
down trees and forests for farmland and other human uses, more carbon dioxide also enters the
atmosphere.
because weve burned a lot of fossil fuels and deforested parts of the planet, weve increased the amount
of greenhouse gases, and as a result have changed the temperature of the planet. Which is global
warming.
Greenhouse gases, such as, water vapor, carbon dioxide, methane, nitrous oxide

and ozone, occur naturally in the atmosphere. Global warming results from the alteration of these natural
levels of gases through certain human activities. Increased levels of carbon dioxide, for example, let
ultraviolet radiation through but trap infrared, the so-called greenhouse gas.
Global warming is the term used to describe a gradual increase in the average temperature of the Earth's
atmosphere and its oceans, a change that is believed to be permanently changing the Earth's climate.
Causes of Global Warming
A rise in the natural levels of greenhouse gases that result in global warming, are
mainly caused by mankinds excessive burning of fossil fuels, such as, oil, natural gas,
and coal. Coal, emits both the most toxic mercury and carbon dioxide (Boston Globe).
Carbon dioxide is released into the atmosphere when solid waste, fossil fuels, and wood
are burned. 1.7 billion cubic meters of wood goes up in smoke each year, which adds
greatly to the atmospheric levels of carbon dioxide. Normally, burning wood and other
biomass wouldnt be harmful to the environment because they would leave carbon levels
constant. The reason it is a problem is because plantings dont equal burnings. Biomass
burning is also a major source of methyl chloride, which adds to the chlorine destroying
the ozone layer. Methane is emitted during the production and transportation of fossil
fuels, the decomposition of organic wastes in municipal solid waste landfills, and the
raising of livestock. Nitrous oxide is emitted during agricultural and industrial activities,
as well as during combustion of solid waste and fossil fuels. Hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) are all very powerful
non-naturally occurring greenhouse gases that are generated from a variety of industrial
processes.
With higher CO2 concentrations come expectations of a stronger greenhouse effect and therefore warmer
global temperatures.
The consequences of changing the natural atmospheric greenhouse are difficult to predict, but certain
effects seem likely:

On average, Earth will become warmer. Some regions may welcome warmer temperatures, but
others may not.

Warmer conditions will probably lead to more evaporation and precipitation overall, but
individual regions will vary, some becoming wetter and others dryer.

A stronger greenhouse effect will warm the oceans and partially melt glaciers and other ice,
increasing sea level. Ocean water also will expand if it warms, contributing further to sea level rise.

Meanwhile, some crops and other plants may respond favorably to increased atmospheric CO 2,
growing more vigorously and using water more efficiently. At the same time, higher temperatures and
shifting climate patterns may change the areas where crops grow best and affect the makeup of natural
plant communities.

Greenhouse Gas Induced Global Warming

Since the industrial revolution got into full swing in the 19th century we have been burning ever
increasing amounts of fossil fuels (coal, oil, gasoline, natural gas) in electric generating plants,
manufacturing plants, trains, automobiles, airplanes, etc. Burning releases CO 2 into the
atmosphere (much the same as respiration does). These fossil fuels may have formed tens or
hundreds of millions of years ago from the buried and preserved remains of plant and animal
matter whose carbon originated via photosynthesis.

What is Environmental Degradation?

Environmental degradation is the disintegration of the earth or deterioration of the environment through
consumption of assets, for example, air, water and soil; the destruction of environments and the
eradication of wildlife. It is characterized as any change or aggravation to natures turf seen to be
pernicious or undesirable. Ecological effect or degradation is created by the consolidation of an
effectively substantial and expanding human populace, constantly expanding monetary development or
per capita fortune and the application of asset exhausting and polluting technology. It occurs when earths
natural resources are depleted and environment is compromised in the form of extinction of species,
pollution in air, water and soil, and rapid growth in population.
Environmental degradation is one of the largest threats that are being looked at in the world today. The
United Nations International Strategy for Disaster Reduction characterizes environmental degradation as
the lessening of the limit of the earth to meet social and environmental destinations, and needs.
Environmental degradation can happen in a number of ways. At the point when environments are
wrecked or common assets are exhausted, the environment is considered to be corrupted and harmed.
There are a number of different techniques that are being used to prevent this, including environmental
resource protection and general protection efforts.

Environmental issues can be seen by long term ecological effects, some of which can demolish whole
environments. An environment is a unique unit and incorporates all the living and non-living components
that live inside it. Plants and creatures are evident parts of the environment, but it also includes the things
on which they depend on, for example, streams, lakes, and soils.
Environmental surroundings get to be divided when technological advancement splits up areas of land.
Some examples of this can include streets which may slice through woods or even trails which wind
through prairies. While it may not sound all terrible on the surface, there are bad results. The biggest of

these results are felt by particular animal and plant groups, the vast majority of which are specific for their
bio-region or need a large area in order to make sure that their genetic lines are kept intact.
Causes of Environmental Degradation
Some environmental life species require substantial areas to help provide food, living space, and other
different assets. These creatures are called area specific. At the point when the biome is divided, the vast
patches of living space dont exist anymore. It gets to be more troublesome for the wildlife to get the
assets they need in order to survive. The environment goes on, even though the animals and plant life are
not there to help sustain it properly.
1. Land Disturbance: A more basic cause of environmental degradation is land damage. Numerous
weedy plant species, for example, garlic mustard, are both foreign and obtrusive. A rupture in
theenvironmental surroundings provides for them a chance to start growing and spreading. These plants
can assume control over nature, eliminating the local greenery. The result is territory with a solitary
predominant plant which doesnt give satisfactory food assets to all the environmental life. Whole
environments can be destroyed because of these invasive species.
2. Pollution: Pollution, in whatever form, whether it is air, water, land or noise is harmful for the
environment. Air pollution pollutes the air that we breathe which causes health issues. Water pollution
degrades the quality of water that we use for drinking purposes. Land pollution results in degradation of
earths surface as a result of human activities. Noise pollution can cause irreparable damage to our ears
when exposed to continuous large sounds like honking of vehicles on a busy road or machines producing
large noise in a factory or a mill.
3. Overpopulation: Rapid population growth puts strain on natural resources which results in
degradation of our environment. Mortality rate has gone down due to better medical facilities which has
resulted in increased lifespan. More population simple means more demand for food, clothes and shelter.
You need more space to grow food and provide homes to millions of people. This results in deforestation
which is another factor of environmental degradation.
4. Landfills: Landfills pollute the environment and destroy the beauty of the city. Landfills come within
the city due the large amount of waste that gets generated by households, industries, factories and

hospitals.Landfills pose a great risk to the health of the environment and the people who live there.
Landfills produce foul smell when burned and cause huge environmental degradation.
5. Deforestation: Deforestation is the cutting down of trees to make way for more homes and industries.
Rapid growth in population and urban sprawl are two of the major causes of deforestation. Apart from
that, use of forest land for agriculture, animal grazing, harvest for fuel wood and logging are some of the
other causes of deforestation. Deforestation contributes to global warming as decreased forest size puts
carbon back into the environment.
6: Natural Causes: Things like avalanches, quakes, tidal waves, storms, and wildfires can totally crush
nearby animal and plant groups to the point where they can no longer survive in those areas. This can
either come to fruition through physical demolition as the result of a specific disaster, or by the long term
degradation of assets by the presentation of an obtrusive foreign species to the environment. The latter
frequently happens after tidal waves, when reptiles and bugs are washed ashore.
Of course, humans arent totally to blame for this whole thing. Earth itself causes ecological issues, as
well. While environmental degradation is most normally connected with the things that people do, the
truth of the matter is that the environment is always changing. With or without the effect of human
exercises, a few biological systems degrade to the point where they cant help the life that is supposed to
live there.
Urban Development
According to many noted ecologists, including those at Cornell University, urban development is one of
the primary causes of environmental degradation. As populations increased, so did the need for land for
homes and farms. Wetlands were drained. Prairies were plowed over. Today, less than 50 percent of the
nation's wetlands still exist, according to the North Carolina State University Water Quality
Group. National Geographic states that only five percent of the native prairie remains.
Environmental degradation is one of most urgent of environmental issues. Depending upon the damage,
some environments may never recover. The plants and animals that inhabited these places will be lost
forever. In order to reduce any future impacts, city planners, industry, and resource managers must
consider the long term effects of development on the environment. With sound planning, future
environmental degradation can be prevented.

Effects of Environmental Degradation

1. Impact on Human Health: Human health might be at the receiving end as a result of the
environmental degradation. Areas exposed to toxic air pollutants can cause respiratory problems like
pneumonia and asthma. Millions of people are known to have died of due to indirect effects of air
pollution.
2. Loss of Biodiversity: Biodiversity is important for maintaining balance of the ecosystem in the form of
combating pollution, restoring nutrients, protecting water sources and stabilizing climate. Deforestation,
global warming, overpopulation and pollution are few of the major causes for loss of biodiversity.
3. Ozone Layer Depletion: Ozone layer is responsible for protecting earth from harmful ultraviolet rays.
The presence of chlorofluorocarbons, hydro chlorofluorocarbons in the atmosphere is causing the ozone
layer to deplete. As it will deplete, it will emit harmful radiations back to the earth.
4. Loss for Tourism Industry: The deterioration of environment can be a huge setback for tourism
industry that rely on tourists for their daily livelihood. Environmental damage in the form of loss of green
cover, loss of biodiversity, huge landfills, increased air and water pollution can be a big turn off for most
of the tourists.
5. Economic Impact: The huge cost that a country may have to borne due to environmental degradation
can have big economic impact in terms of restoration of green cover, cleaning up of landfills and
protection of endangered species. The economic impact can also be in terms of loss of tourism industry.
As you can see, there are a lot of things that can have an effect on the environment. If we are not careful,
we can contribute to the environmental degradation that is occurring all around the world. We can,
however, take action to stop it and take care of the world that we live in by providing environmental
education to the people which will help them pick familiarity with their surroundings that will enable to
take care of environmental concerns thus making it more useful and protected for our children and other
future generations

Environment and economy interlink ages

The size and structure of the economy is fundamentally shaped by the environment. This is true for a local or
national economy as much as for the global economy. Economic activity in turn changes the environment through
the use of resources and generation of pollution and wastes (Figure 1.1). At one level the economic significance of
the environment can be measured by the size of the economy. These economic activities that are directly associated
with the use and management of environmental resources also have knock-on (so called multiplier) effects on
the rest of the economy. For example, spending on pollution control generates a demand for components, which in
turn generates a demand for raw materials. These knock-on effects can be calculated based on input-output tables
that show the inputs that each industry needs to produce its own output. The multiplier effects which are based on
these economic linkages capture the economic value generated by the direct use and management of the
environment as it affects the rest of the economy, i.e. the indirect effect.

Economic functions of the environment

1 environment supplies us with various sources. Like forests, water, fossil fuels some of which are
renewable and some are not or takes huge amount of time to be replenished.
2. the environment assimilates wastes
3.the environment provides life support services such as maintenance of genetic diversity and
stabilization of the ecosystem
4.it proves us with various services like that of recreation, scenery and wildlife for aesthetic enjoyment.
The transformation of wastes (from low to high entropy) caused by economic activities of production and
consumption not only prevents the environment from functioning first 2 functions but also hampers the
third function.In the absence of the first function there could be no economic activity at all. And absence
of 2nd function affects the 3rd and when environment fails to perform these it leads to environmental crisis.

The environment, both biological and physical, is the source of all natural resources.
Some natural resources are renewable (e.g., water, biological resources) while others
are non renewable (e.g., geological deposits). The interlinkages between the economy
and the environment are summarized in the figure. The economy consists of two
sectors: Producers and Consumers, exchange of goods, services and factors of
production (Labour and Capital) take place between the two sectors. The environment
is shown in two ways: as the three interlinked circles E1, E2 and E3 , and the all
encompassing boundary labeled E4 .The production sector extracts energy resources

(such as oil) and material resources (such as iron ore) from the environment, these
are transformed into outputs through the production process, these transformation
processes also generate wastes at different stages and often the environment is used
as a repository (Sink) for waste products. There is some recycling of resources within
the production sector, shown by the loop R1, and within the consumption sector, as
shown by the loop R2.
As we can see the environments first role is as a supplier of resources. Secondly it
acts as a sink or a receptor for waste products. These wastes may result directly from
production, as already mentioned or from consumption. When an individual puts out
their garbage, or when they drive to work, they are contributing to this form of waste.
Finally the environment also serves as an amenity these include scenic beauty,
recreation and other aesthetic values offered by the environment.

Linkage between Economic and Environmental Systems

and see the diagram saved in computer and environment

economy linkage.

Three rs reduce , reuse and reproduce

Population and environment linkage

The link between population growth and environmental impact seems obvious at first
glance: more people consume more resources, damage more of the earth and generate
more waste. Humans are a force of nature. As nations develop, they increase
consumption

Land Use
Fulfilling the resource requirements of a growing population ultimately
requires some form of land-use change--to provide for the expansion of food
production through forest clearing, to intensify production on already
cultivated land, or to develop the infrastructure necessary to support
increasing human numbers. These types of land-use changes have several
ecological impacts. Converting land to agricultural use can lead to soil
erosion, and the chemicals often used in fertilizers can also degrade soil.
Deforestation is also associated with soil erosion and can lessen the ability of
soil to hold water, thereby increasing the frequency and severity of floods.
Human-induced changes in land use often result in habitat fragmentation
and loss, the primary cause of species decline.
Global climate change i.e global warming read above and do
Increase in population increases a demand for social infrastructure.
Majority of the resources are consumed by a minority and mojrity of the
poor exploit the mimum resources available to them
However, the relationship between population and the environment is complex. As
noted in section 1, human societies' impacts on the environment are a function of three
major, interconnected elements: population size, affluence or consumption, and
technology. An expanded version of the IPAT equation separates technology into two
factors: resource-intensity (how many resources are used to produce each unit of
consumption) and waste-intensity (how much waste each unit of consumption
generates), and also considers the sensitivity of the environment (footnote 11).
Societies' environmental impacts take two major forms. First, we consume resources
such as land, food, water, soils, and services from healthy ecosystems, such as water
filtration through wetlands. (For more on ecosystem services, see Unit 9, "Biodiversity
Decline.") Over-consumption uses up or severely depletes supplies of non-renewable
resources, such as fossil fuels, and depletes renewable resources such as fisheries and
forests if we use them up faster than they can replenish themselves
Second, we emit wastes as a product of our consumption activities, including air and water pollutants,
toxic materials, greenhouse gases, and excess nutrients. Some wastes, such as untreated sewage and
many pollutants, threaten human health. Economies tend to become more high-polluting during early
stages of economic development because they first adapt inexpensive technologies that are relatively

inefficientfor example, simple manufacturing systems and basic consumer goods such as cars. As
income rises and technologies diffuse through society, consumers start to value environmental quality
more highly and become more able to pay for it.

Increase of water consumption and also water pollution due to industrial

waste.
Pollution of land air and water due to over production , disposal of waste and
many other reasons. Depletion of forest resource .