Economic Growth Sustainability Essay Example

Economic Growth Sustainability Essay Although developed countries provide more income and benefits per capita, richer and poorer nations both experience poverty and unemployment. Therefore, prosperity to the individual as well as businesses lies in the environment and society. This report will provide insight towards global issues as well as visions and strategies towards prosperity, by revealing the financial and ecological effects of economic growth. Introduction CEO of The Colourful Corporation is concerned with the investments impact on environmental sustainability and its impacts. She is worried that protection and continuation of economic growth is unsustainable ecologically as well as financially. She questions the idea of prosperity being possible with continuous growth and if prosperity is possible as well without growth. Aim Provide CEO of the Colourful Corporation with a 3000-word report on a future vision and strategy she could consider for a sustainable Colourful Corporation. Financial Impacts of Growth Economies on Prosperity Economic growth and prosperity have a direct relationship to employment. Rich and poor nations who have arrived at or are working towards economic growth both share low employment. Growth nations allow individuals to not experience decline in income, while a nation without growth does not even allow income in the first place. In fact, a nation without economic growth barely provides its population with the subsidies to meet their minimal needs (Webb amp; Albert, 2010: 51). Current and future investment vision and strategies Investment at either small or large scale is required to help countries that are developing become sustainable economies. If emerging economies have to relive the entire industrial revolution with all its waste, its energy use and pollution, I think it’s all over† said Robert B. Shapiro, former CEO of Monsanto. Transition to sustainability â€Å"Leave the world better than you found it, take no more than you need, try not to harm life or the environment, and make amends if you do. † Paul Hawken who is an environment alist, entrepreneur and author. Economies with sustainable environments make a transition towards sustainability. We will write a custom essay sample on Economic Growth Sustainability specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Economic Growth Sustainability specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Economic Growth Sustainability specifically for you FOR ONLY $16.38 $13.9/page Hire Writer One way is to maintain a measurement system for resources, pollution, ecology, population and economics. The system includes actions such as rewarding behavior that is earth sustaining, using full-cost pricing strategies; poverty reduction; eco-labels use on products; improvements of efficiency in energy; reduction of waste and use of resources and preservation of bio-diversity. Inequality reduction rises with human capital as well as technological investments (Guiga amp; Rejeb, 2012: 471). Economies progress via management of resources through human development and economic integration that are components used to rate countries environmental performance. Although poverty is supported and uplifted by economic growth, countries with the lowest rating of environmental performance index usually have common, one or more of characteristics such as absolute poverty, weak governance, severe environmental degradation (Skare amp; Druzeta: 690). Environmental quality improvement through economic tools Economic tools are available for First of economic tools for environmental quality improvement include full-cost pricing. This explains market and external market costs involved with the impact of harmful purchases by consumers. This considers the consumer health as well as the health of the earth’s environment. Secondly, is eco-labeling. This tool provides consumers with information to purchase products, with knowledge of the impact in its production. The labeling and certification of products also motivate companies to provide services and goods to be produced in an eco-friendly manner. This tool is beneficial to the economy, company, ecology and the consumers’ well being. The final tool is replacing harmful materials with beneficial alternatives. Through the use of more sustainable resources at the national level, harmful businesses would be replaced with environmentally sustainable businesses. Effectively, natural resource depletion, pollution and waste will decrease. Here lies the incentive for businesses as well as consumers to save money by considering the future of surrounding ecologies. New industries, profits and jobs The environmental sustainable industry has been growing and creating new jobs and profits. Some areas of sustainable business include biodiversity protection; biofuels, environmental education, environmental engineering, ecotourism management, energy efficient product design, and many more. Sustainable businesses have created careers in fuel cell technology, hydrogen energy, pollution prevention, marine science, sale of services instead of products and solar cell technology. Companies in the sustainable industry implement efficient processes and equipment. Sustainable companies created more jobs than jobs lost in harmful and unsustainable businesses. Environmental industries are on par with the automobile industry on a global level, almost reaching 100 billion a year in sales and creating more than 11 million employment opportunities (Miller Jr. , 2007: 588). Environmental and human quality improved with poverty reduction According to the United Nations and the World Bank, there are 1. 1 billion people struggling to survive with an income not exceeding one U. S. dollar a day. Approximately half the world population’s income is between one and two U. S. dollars. Most income distribution is between rich nations, shaping 85% of global wealth distribution. The increase per capita in developed countries cause the rapid use of resources, faster than they could be reproduced to meet the survival need (Miller Jr. , 2007: 584). Income continues to rise towards the rich and cause the increasing wealth gap since 1980. The planet’s three richest people are wealthier than the poorest 47 countries combined GDP – consisting 600 million people (Miller Jr. , 2007). Valuing and monitoring services of the environment and ecology Environmental sustainability requires monitoring and valuing of ecology. Nonmarket subsidies of ecology excluded in the usual market transactions can be estimated in more than one way. The first method is the existence value, involving endangered forests or species at risk of extinction. Secondly, aesthetic value is a cost dedicated to measuring the beauty of nature. Lastly, the option value, or bequest, measures people’s willingness to pay for protection of nature or parts of it for the next generations (Miller, Jr. , 2007). Scarcity of resources affects its future value. Economists measure resources’ future value through the discount rate method. Since the value of today’s resources could be greater than in the future, harmful costs hidden from the consumer should be included. To earth, things cost more than a consumer can assume. Production of goods and their wage does not include health and harmful environmental costs. Although measurement uncertainties could arise such as air pollution, the cost-benefit analysis can serve as a basic yet useful instrument. Ecological Impacts of Growth Economies on Prosperity Unstable conditions of supply and demand of goods and services are not met directly correlate to the economic equilibrium (Tim Jackson, 2009). The second connection is the cyclic aspect defining the product output on the environment to reenter the environment without causing harm (Tim Jackson, 2009). Thirdly, economic development consisting of more views than one economic growth model involves changes in the attitudes institutions and society at a national level. (Tim Jackson, 2009) Pollution in the air Air pollution is one consequence of economic growth. Air quality is monitored today via satellites and advanced equipment. The same indicator of air pollution could be reached through biology, i. e. lichens feeding on pure air, which become crusty as a result of air pollution in industrial locations. Lichens are also useful for tracking the source of pollution, as they are nourished only in a pollution-free zone. Main sources of air pollution originate from industries of electric power, motor vehicles and industrial plants. Such industries directly disturb the troposphere, which acts as giver of life to the earth, and the stratosphere, acting as the sunscreen of the globe. Air pollution is primary degree pollution where it inflicts direct harm, unlike the troposphere in which it is considered second-degree pollution. Interaction between primary degree pollutions results in second-degree pollutions. Major contributors to air pollution are carbon oxides, nitrogen oxides, nitric acid, sulfur dioxide and sulfuric acid. They are created by forests burning; exhausts of motor vehicles; smoking of tobacco and open fire cooking with environmentally harmful stoves. Air pollution is therefore created indoors as well as outdoors (Gall, et al, 2013: e3). Current and future investment vision and strategies Reducing and preventing air pollution includes clean up and prevention through increasing efficiency of automobiles, lighter SUVs and trucks; and redesigning management and operations of air traffic regulation and water ways. Other sustainable solutions for future investments are the burning of coal containing no sulfur, and converting coal into gas or liquid form, to remove pollutant after combustion. Current and future investments may include the distribution of cook stoves that are efficient and cheap in developing countries; regulation of indoor-smoking; and distribution of cheap testing material for indoor pollution. Most definitely, technologies should be distributed in the developing countries to efficiently provide energy. Developing and developed countries must rely on cleaner and energy that is renewable, especially wind and solar. Aquatic changes Water, a replenish-able resource, is also affected by economic growth, yet can also be monitored and measured (Vanden amp; Olmstead 2013: 157). Types include fresh water, groundwater and surface water, which are key resources. Currently, more than 50% of the world’s surface water that is reliable is used, and by 2025 there could 70-90% usage of water due to population and consumption increase. This estimate considers that current usage of water at the current rate per capita does not change (Miller, Jr. , 2007). In 2003 the world’s continents were measured in terms of their population vs. water resources (Miller Jr. , 2007: 307). North and Central America, South America and Caribbean and Oceania all supplied more water than population. In particularly, water supplies were more than four times the population in South America and Caribbean. Algae plants can be used instead of expensive purification systems for water cleansing. Communities and industries in developing countries would take advantage of this tool. Using processes that are natural to recycle as well as removal of chemicals and nutrients are sustainable approaches. Current and future investment vision and strategies Consider acquisition of public or private water companies. European companies such as Vivendi, RWE and Suez aim to manage and control 70% of the United States water businesses. These European companies understand the scarcity of water and the need to manage them for profit. The Colourful Corporation must acquire water companies or manage them in order to encourage environmental sustainability. Future investment strategies in water company acquisition and management include restructuring manufacturing processes. On the other hand, current investments for water management techniques include two options. First option is the installation of water measurement systems i. e. water meter in across company portfolio. Alternatively, would be the water purification system for real estate including multi-family, single-family, offices and hospitality. Waste As industries grow, waste grows with them. Solid waste is seen on a daily basis such as cans, food, bottles, packages and many more. There are also toxic and hazardous chemical wastes such as medically discarded waste from hospitals, automobile batteries and house cleaning and pest prevention products. Waste is therefore produced directly through households and indirectly through industrial productions, in addition to discarded products at the end of its use. Current and future investment vision and strategies The five sustainable R’s are: Refuse, Reuse, Reduce, Recycle and Repurpose. Reduction of solid waste for current investments requires control of excess consumption. Solutions include rental, use and reuse of capital expenditures. Future investments can focus more on redesigning the manufacturing use and produce process to reduce material, energy, waste and pollution. Human health Not only the environment is affected by hazards but the human health as well. Lung cancer is a probable risk along with other risks. Hazards affecting human health include chemical, biological and cultural types (Hungerbuhler, Wohrnschimmel amp; MacLeod, 2013). Diseases in developing countries have killed people suffering flu and pneumonia, disease cycles and tobacco being the three primary causes that are treatable health hazards in developed nations (Miller Jr. , 2007: 420). Current and future investment vision and strategies Solutions to hazards require current and future philanthropic investments to provide immunization to the children against more dangerous diseases. Also, to educate the public about HIV/AIDS and its symptoms, and improving the quality of water for drinking purposes will increase protection against deadly diseases on a daily basis. Energy Non-renewable energy adds to heating the earth as well as exhausting limited resources. Oil is the most commonly used source of energy but it will not be long before the oil wells dry out at an estimated time of about 50 to 90 years. As oil prices increase the economies and life-styles that are heavily dependent on oil will begin to shake unstable. As oil prices rise in oil dependent countries, prices of products and materials sharply rise as well, in production and transportation costs (Phannalangsi, 2011: 263). New ways extracting carbohydrates are a growing industry, also known as biotechnology. This is concentrated on food products such as soybean, corn and plants. With non-dependent oil countries, businesses can stay globalized and low-cost air travel will remain possible. Most importantly, reduction in wasted energy could provide a longer life to fossil fuel supplies, also lowers energy costs with higher net energy, lessens pollution and creates more jobs. Net energy efficiency is the measurement of only the useful energy obtained from a resource of energy after the energy wasted and used to produce that available energy is subtracted. Using electric motors that are energy efficient helps in saving money and energy by obtaining electricity and heat from one source of energy. There are electric motors that are energy wasting, yet must be replaced, as they spend approximately 10 times more than their purchase price only in recharging. That is equal to $200,000 a year of gasoline to fuel a car costing about $20,000 (Miller, Jr. , 2007). Current and future investment vision and strategies Current investments of The Colourful Corporation could consider replacement of incandescent inefficient lightings to fluorescent efficiency lighting in all types of investments as well. However, future investments should consider stronger and lighter materials that can reduce energy usage when it omes to production and especially shipping. Transportation is a key factor in daily life and improvement of it can change the world tremendously. Another way is to redesign buildings to save resources and energy via sun heat and rooftops filled with green plants. Green rooftops help absorb the produced carbon oxides back from the air. Also appliances that are energy efficient can b e useful for the corporation future investment strategy as well as efficient heating of water and houses. More can be achieved via solar energy as well. Food Food is equal to water in its importance to human health and growth. Economic growth without security of food and nutrition is pointless. Poverty in developing countries lack the means to provide necessary food supplies to one of every six people, even with production of food being ahead of population. This is a threat to the people’s health in developing countries, as it of barely meets the nutrition needs to fight disease and sustain good health. Poor nutrition has caused one in every three people to not meet one or more of the minerals and vitamins necessary such as iron and Vitamin A (Popkin amp; Ng: 199). Reduction of hunger problems must be met through motivating mother without HIV/AIDS to breast feed children, avoiding dehydration, and vitamins to prevent blindness at a cost of 75 cents a child. Programs can be provided to educate women about nutrition, childcare and birth plan calendar of possible births with full recovery before the next birth, usually every two years. Developed countries such as the United States suffer as well but from the excess of food. When fat is created it is dangerous if obesity when resulting obesity (Nayga, Jr. , 2008: 281). Overweight and underweight people face related problems such as illness and disease, decrease of quality of life and earlier death as well. In the world, 1. 2 billion people live with problems in healthy and lifestyle because of too much eating and 1 billion people live with lifestyle and health problems due to malnutrition. Current and future investment vision and strategies Philanthropic investments of educational programs can be used in both rich and poor nations. Reaching equilibrium in economic growth with good health provides more productivity as well as increased savings (Odrakiewics, 2012: 68). Conclusion Economic growth with prosperity is possible but not without a turning point in current business practices. Ecological prosperity includes repairing any damage to the ecology, not harming the air, water and soil, using as much as is needed with minimal excess, learning and imitating nature in ways it recycles, alongside the increase on subsidies. Financial prosperity includes providing education and security to the work force, as well health safety for those who cannot perform at full effort because of age, health and other factors. Preventing theft of intellectual property, fraud and enforce property and copy rights will thus maintain financial prosperity. References Ailenei, D. and Mosora, L. 2011. Economics of Sustainable Development. Competitiveness and Economic Growth*. Theoretical and Applied Economics, XVIII (2), pp. 5-12. Available at: http://content. ebscohost. com. ezproxy. lib. rmit. edu. au/pdf25_26/pdf/2011/78HU/01Feb11/59149547. pdf? T=Pamp;P=ANamp;K=59149547amp;S=Ramp;D=bthamp;EbscoContent=dGJyMNLe80Sep7M4v%2BvlOLCmr0ueprdSr6i4SLGWxWXSamp;ContentCustomer=dGJyMPGrskyzrbFKuePfgeyx44Dt6fIA. Fisher-Vanden, K. and Olmstead, S. 2013. Moving Pollution Trading from Air to Water: Potential, Problems, and Prognosis. Journal of Economic Perspectives, 27 (1), pp. 147-172. Available at: http://content. ebscohost. com. ezproxy. lib. rmit. edu. au/pdf29_30/pdf/2013/JEC/01Feb13/85292930. pdf? T=Pamp;P=ANamp;K=1343845amp;S=Ramp;D=eohamp;EbscoContent=dGJyMMTo50Sep7Q4v%2BvlOLCmr0ueprJSsKi4S7KWxWXSamp;ContentCustomer=dGJyMPGrskyzrbFKuePfgeyx44Dt6fIA. Gall, E. , Carter, E. , Earnest, C. and Stephens, B. 2013. Indoor Air Pollution in Developing