Finding Balance

The economy depends on the environment in order to function, yet one often gets sacrificed for the other. Economic development occurs at such a fast rate that it often overexploits the environment in order to support the people that rely on the economy. At the same time, some people believe the protection of the environment is a higher priority than fostering economic growth. While a sustainable use of resources is ideal, eventually there won’t be enough resources to support the economies that rely on them. When the resources are drained, the economy retains little of its growth because it is limited by the scarcity of resources.

            The economy often faces a trade-off between economic development and the sustainable use of resources; by finding a balance between the two, the economy is able to maintain a constant rate of growth without damaging the environment. The challenge of the future is finding a sustainable balance.

Economics vs. The Environment - An article that emphasizes the trade-off between trying to balance economic growth with environmental protection in China, a nation trying to sustain its economic growth.

Economics and Mining: Solutions

Since mining has become an unsustainable industry, governments are providing regulations in order to improve market outcomes. One such regulation was the 1977 Surface Mining Control and Restoration Act, in which the US government requires mining companies to pay bonds that will cover restoration of the mines to their original environmental state to reduce the amount of environmental damage.

            Aside from government regulations, another way of making mining more sustainable is through recycling. Metals found in electronic devices, aluminum cans, and other recyclable materials are reprocessed in order to increase the supply of minerals available for production. Companies have even begun mining in landfills to harvest valuable minerals like coltan from old electronic devices. By recycling old materials, companies are able to minimize the impacts of mining and save money on gaining the resources they need. Apart from the government regulations about restoration, recycling is the most effective way of maintain the current supply of minerals while allowing the economy to grow.

New York Times - Recycling - An article from the New York Times about how Japan has started recycling valuable materials in electronics in order to reduce their environmental impact by mining fewer materials.

Economics and Mining: Problems

Mining is one of the most lucrative environmental industries because most modern technologies depend on mineral resources in order to function. Unfortunately, mining is also one of the most unsustainable industries; the effects of mining are toxic to the environment and there is a limited amount of mineral sources. Due to the scarcity of minerals and the rising demand, prices have risen dramatically and more businesses are overexploiting their mineral sources. As more mineral resources are depleted, the demand and the prices rise even higher.

            As the demand for minerals rises, businesses and governments are willing to do more to increase mining practices. One of the most effective methods for mining coal is mountain top removal mining, which involves blasting the tops off of mountains and scraping the coal from underneath. However, this method increases the debris in valleys and pollutes the air and water in the surrounding ecosystems. Mountaintop removal has destroyed nearly 2,000 miles of streams in Appalachia, which reduces the amount of freshwater available by limiting the resource and polluting what little water still exists. So, while mining may be economically beneficial, its growth is rapidly ending as the resource is over-exploited and depleted.

Ecosystem Restoration - An Ecosystem Restoration Page published by Montana State University about the environmental impacts of mining

Economics and Fishing: Solutions

Due to the decrease in the available fish populations, environmental scientists have found new ways to harvest the amount of fish demanded by the economy while allowing fish populations to replenish themselves. Without giving marine ecosystems the time to restore themselves, the fish populations would be depleted past the point of restoration. The two most effective methods of protecting marine diversity while maintaining the fishing industry are the establishment of aquaculture and marine reserves.

            Aquaculture and marine reserves take different approaches to protecting marine biodiversity, but both increase the supply of fish available for the industry. Aquaculture is a form of industrialized fishing where genetically modified fish are raised on farms. These fish are larger and are raised in larger numbers; that way, local fish populations aren't harmed and the supply of fish can be controlled. On the other hand, marine reserves establish protected areas from which no resources are allowed to be drawn. This allows the fish populations to naturally restore themselves, and fishermen can catch the overflow from the reserves, further increasing the supply of fish available to the market.

The Official Website of the Office of Sustainable Fisheries

Economics and Fishing: Problems

            Historically, the fishing industry has been able to meet the demand of human needs, but the rising demand has caused the industry to over-harvest marine resources. Due to high demand, we continuously supply large amounts of fish at the cost of the fish populations. By over-harvesting fish and other aquatic animals from oceans and other bodies of water, we are depleting their populations before they can be naturally replenished. This causes marine ecosystems to lose aquatic biodiversity, which keeps the ecosystem healthy, and it causes a scarcity of fish in the economy.

            Currently, 52% of world fisheries are being fully exploited, which means that no more resources can be drawn from them without damaging the environment. 24% of fisheries have become over exploited  their resources have been depleted and they can no longer be relied on as a source. That means that only 24% of the world’s fisheries are being used sustainably, which drastically limits the resource. And, if the resource is limited, that means that the industry is losing jobs and money, and the government is losing money as it pays to restore the ecosystems to what they once were.

Unsustainable Fishing - More information on the impact of unsustainable fishing practices by the United Nations Environment Program.

Economics and Forestry: Solutions

 Industrialized forestry has managed to destroy countless ecosystems and have ended up costing more in the loss of ecosystem services than what can be made by harvesting the forest. Some countries are finding ways to maximize the profits of their forests without decreasing the amount of resources available. Two of the most common methods of sustainable forestry are companies that use restoration forestry and developing nations that serve as carbon offsets for the industrialized world.

            Restoration forestry requires companies to plant trees for every tree they cut down, ensuring that the ecosystem won’t suffer irreparable damage. Carbon offsets are countries that accept money not to cut down their forests; industrialized nations pay these countries not to cut down forests in order to make up for the carbon produced by the industrialize countries. For instance, Guyana could make up to $580 million in 25 years by harvesting their forests; instead, Norway paid them $20 million in 2010, and will pay an estimated amount of $250 million a year by 2015. This way, Guyana keeps their resource and they have money to fuel their economy. Restoration forestry and carbon offsets manage to restore the environment to its original state without limiting economic development.

Yale School of Environmental Studies - A website sponsored by the Yale School of Forestry and Environmental Studies about “developing a science-based approach to forest management.”

Economics and Forestry: Problems

            Forests provide some of the most important ecosystem services in our economy; forests act as carbon sinks that purify air, purify water sources, and create habitats that shelter biodiversity. They also provide wood for fuel, construction, paper, and serve other purposes essential to our economy. However, as we harvest trees in order to support our economy, we are damaging resources that could be used in the future and eliminating other ecosystem services.

            One of the major issues with harvesting trees is clear-cutting. When companies clear-cut a forest in order to harvest timber, all of the trees are removed from the ecosystem, effectively destroying it. Once the forest ecosystem is destroyed, the economy loses valuable services. For instance, by destroying forests, we are destroying carbon sinks. Trees take in carbon, produce oxygen, and remove pollutants from the air. Without forests serving as carbon sinks, governments have to spend millions of dollars removing air pollution. Overharvesting trees also damages habitats of other organisms, which decreases the biodiversity in the area. When biodiversity decreases, the productivity of the land decreases and what was once an economically prosperous source of resources becomes infertile and useless.

Public Land: Issues - - An information source about the environmental impact of clear-cutting forests, published by the Nova Scotia Public Lands Coalition.