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Essay on Economy vs Environment

Economy and environment are increasingly intertwined at the local, regional, national and global levels forming a complex set of causes and effects. The ecological situation in the world that can be described as a state of ecological crisis, along with the intensification of global socio-economic and political problems requiring stopping dangerous trends and changing the course of modern civilization. One of the main contradictions is a clash between economic growth and the need to limit its environmental capacity. The resolution of this complex problem requires a combination of political will and international efforts to change the paradigm of the economy, which is the transition from the economic system of civilization to the ecological-economic system.

Whenever it comes to clashes of the economic interests with the environmental requirements, it primarily refers to material, “physical” human impact on nature: the consumption of natural resources and pollution. Therefore, it may seem that in the environmental context we should not be talking about the economy as the totality of production of commodity-money relations between people, but only of material production. But this is true only in part. In the relationship between society and the technosphere with its natural environment involves all the structure and function of the economy: production, distribution, consumption and exchange, at least to the extent that money, goods and services required for the use and reproduction of natural resources, preservation of natural objects and conditioning of the human environment, are subject to the economy. But in fact, as it follows directly from the analysis of interactions in the system reflected in Human Economy Habitat Environment (HEHE), all in macroeconomics is included in macroecology. Their interdependence and subordination are becoming more pronounced. And beside economists environmentalists will also have to get used to this fact.

Macroeconomics is formed by two fundamental facts:

  1. the material needs of people and the whole of human society are endless and unquenchable;
  2. material resources – the means to meet the needs – are limited or rare.

These facts cover all savings problem in which the economic optimality criterion – maximum possible satisfaction of needs with limited resources is reflected. But this foundation of macroeconomics has become a central issue macroecology as the development of civilization and especially the modern economy has caused a large amount beynodbiological consumption, and most of the resources of the technosphere – abiotic resources – both before and after processing them by human is unsuiyable for natural assimilation in the biosphere. These factors combined with large numbers of people, which is partly also due to the economy, were the main reasons for upsetting the natural balance and environmental deterioration. Prevailing part of economic growth attributable to one person, is almost entirely due to buildup of beynodbiological use of resources and production of secondary sources of consumer goods. This is due to the huge expansion of exploitation of mineral resources and energy technology. Technosphere expanded on this basis. Hence the impression of independence economy from resources of the biosphere. Indeed, the set of industries, providing basic needs of people – agriculture, food, light industry and utilities in most developed countries is a relatively small sector of the economy, and in the world in general – 32% on the total contribution to the GDP.

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