MARKET REGULATIONSby Bwalya Bwalya | 13-10-2018 06:47 |
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Market based policies are fast becoming the recommended policy for all the world's environmental problems. So the level of government intervention in the flow of prices in the market or policies that have been put in place can have an impact on the management of the environment. For example if governments allow a free market or if poor policies have been put in place, it would lead to externalities. The social and economic welfare of human beings is closely linked to their environment. Any change in socio-economic fields can have an impact on the environment and vice versa, whether negatively or positively, immediately or eventually. And in many cases, the negative impacts are irriversable. All human activities designed and implemented for the economic growth of the country and social needs will directly or indirectly have an impact on environment.This changes resources like water and land. Unlike social and economic sectors, environmental concerns are similar in both developing and developed countries as citizens of all countries must have access to clean and safe drinking water and sufficient supply of clean renewable energy. Poverty impels people to engage in destructive activities like cutting down of trees to use as wood for fuel, use agricultural land extensively and overexploit water resources. Surely environmental issues originate from social factors. Therefore, market regulations are very important as they help with the regulation of prices between countries. For example, if two countries with the same input and output, technologies and preferences engage in free trade in an unregulated uncompetitive markets, it can lead to overexploitation of resources used for production of goods and services. In conclusion, market regulations affect the management of the environment in both negative and positive ways. Good and proper market regulationscan lead to environmental sustainability while poor or improper market regulations can lead to externalities and environmental degradation.
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