The cost of pollution

The cost of pollution

Context

Pollution is a challenge to developing countries which try to achieve rapid economic development without adequately managing the environment. In recent years, the pollution load has increased, sometimes beyond the carrying capacity of the environment. Though various measures have been adopted to manage pollution, significant progress has not been achieved

Environmental Kuznets Curve (EKC) hypothesis

It suggests that as per capita income grows, the increase in environmental impact hits the maximum and thereafter declines

• Why this happens? According to the hypothesis, in the initial stages of economic growth, when more resources are used, there is greater waste generation and more emissions. But when a country has achieved a certain level of development, pollution reduces with greater protection of the environment, technological improvements, diversification of the economy from manufacturing to services, and increasing scarcity and prices of environmental resources, leading to lower consumption
• Where is India? India is on the upward part of the EKC

Author’s contention

India must not wait for the next stage. It can’t ignore the environmental consequences of its rapid growth

Impact of the pollution

• The economic loss on account of pollution includes the cost of treatment and wage loss during sickness. Pollution impacts ecosystems and related economic activities like agriculture and livestock
• Air pollution causes climate change. Hence, pollution leads to the real and potential loss of the overall development opportunity in an economy. Generally, pollution impacts the socially vulnerable and poor communities more due to their weak coping options
• When traditional drinking water sources get contaminated, the rich can buy packaged water. But the poor cannot afford it and are hence compelled to use contaminated water. They are also less aware of the health hazards caused by pollution

Issues

• Natural resources management agencies have centralised structures and function without the consultation of multi stakeholders
• Emission-based standards have not been very effective so far, since they are rarely monitored and only occasionally enforced
• The ‘polluters pay’ principle is not in force
• Pollution is also neglected by funding agencies worldwide and by governments in budgets

Measures

There should be

• Public awareness about consequences of pollution
• Adequate pollution-linked databases
• Integration of pollution prevention policies into the development sector
• Strict enforcement of pollution control policies
• Eco-friendly inputs in production, reliance on renewable energy
• Introduction of market-based/economic instruments (charges/taxes/levies, tradable permits, subsidies and soft loans)
• Increase in ecosystem resilience through the conservation of biodiversity