Pollution economic growth

Explore the latest strategic trends, research and analysis Over the past 30 years US GDP per capita has nearly doubled while pollution emitted by US manufacturers has declined. Claims that richer countries pollute less typically cite the seminal paper by Grossman and Krueger demonstrating that many pollutants appear to increase with national income in poor countries, but decrease with national income in rich countries.

Pollution economic growth

The impact of pollution is more severe in developing countries, leading to ill health, death and disabilities of millions of people annually. Developed countries have the resources and technologies to combat pollution. As a result of the health risks and the potential impact of climate change, there have been efforts to reduce pollution.

However, while this may be easy for developed countries, halting environmental pollution may undermine economic growth and competitiveness of developing countries whose economies depends on natural resources.

At every point and in every level of development, countries need to make choices between often conflicting goals. Developing countries desire to ensure energy for all at a competitive price to achieve and sustain economic growth and poverty reduction.

The energy poverty experienced in these regions has been linked with the high level of income and non-income poverty in the regions.

In their desire to develop and improve the standards of living of their citizens, these countries will opt for the goals of economic growth and cheap energy for all.

This may lead to environmental pollution and degradation. More so, energy access, and at a lower price, is necessary to make the industries in developing countries competitive and contribute to economic growth, job creation and development.

Pollution economic growth

Ensuring energy access to the population and enhancing the competitiveness of local industries may require providing energy at lower prices through energy subsidies. This will encourage energy over-consumption, waste and inefficiency and also fuel environmental pollution.

Most developing countries, especially those in sub-Saharan Africa, depend majorly on natural resources for revenue and foreign exchange. These economics are driven by funds generated from exploitation of natural resources such as coal, oil and gas, agricultural and forest resources, gold, copper, etc.

The livelihood of the masses also depend on these resources. However, the exploitation and processing of some of these resources result in environmental pollution and degradation. For instance, the exploration of oil and the activities of multinational oil companies in the Niger Delta region of Nigeria has caused substantial land, water and air pollution.

Pollution economic growth

However, for Nigeria to maintain its current economic growth path and sustain its drive for poverty reduction, oil exploration and production will continue to be a dominant economic activity.

This is also the case with a number of other developing countries. The inevitability of pollution in developing countries has been demonstrated by the Environmental Kuznet Curve.

The EKC is a hypothesized relationship between indicators of environmental degradation and income per capita. According to the theory, environmental pollution and degradation increase in the early stages of economic growth, get to a peak point, and reverse in such a way that the environment improves at high income levels.

This is based on the fact that developing countries desire industrialization and economic growth and tend to consume more cheap energy. There is also need for developing countries to build roads and rail tracks and develop massive infrastructure to promote economic growth.

Such activities that are required at the take-off stage of economic development are substantially energy-intensive. The important role of industrialization in the development process of developing countries cannot be overemphasized.

There is need for structural transformation from small-scale agriculture to industrialization in order for developing countries to experience inclusive and pro-poor growth.

However, industrialization requires massive use of energy resources which could lead to pollution and environmental degradation. China would not have achieved the impressive economic growth and development it has recorded in recent years if she had cared about pollution at the initial stage of development.

Pollution, health and economic growth - ScienceDirect

Other developed economies like the OECD are also focusing on environmental sustainability after achieving considerable growth and improvement in the living standard of their citizens.Sep 10,  · Over the past 30 years US GDP per capita has nearly doubled while pollution emitted by US manufacturers has declined.

Ozone emissions are down 33%, nitrogen dioxide 60%, sulfur dioxide Watch video · Pollution crisis is choking the Chinese economy The Asian colossus is losing percent of GDP to pollution-rated costs.

A new study suggests that air pollution policy reduces the extent to which population growth in metropolitan areas results in increased pollution emissions without disrupting the economic growth.

A nation’s economic growth can contribute to several different kinds of pollution, affecting health and motivating policymaking decisions.

“Our point is not to dispute the quantity of pollution, nor is it to argue about the effects of pollution on people’s health or the climate,” Vandenbroucke and Zhu said. Air pollution policy reduces the extent to which population growth in metropolitan areas results in increased pollution emissions without disrupting the economic growth from this urbanization, new.

Pollution stunts economic growth and exacerbates poverty and inequality in both urban and rural areas. Poor people, who cannot afford to protect themselves from the negative impacts of pollution, often suffer the most.

Does economic growth reduce pollution? | World Economic Forum