Environmental Protection

The document discusses several ways that business and industry can negatively impact the environment through externalities like pollution, resource depletion, and disrupting natural balances. It provides examples of issues like deforestation, pollution, the greenhouse effect, nuclear power, and how environmental groups advocate for more sustainable practices and policies to regulate negative externalities.

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Environmental Protection

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Mark Matyas

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Témakör 5 1

Téma 1

Business and the Environment

During the 1980's, the industrialised countries became more conscious of the degradation of the
environment. By the 1990’s, in almost every sphere of environmental protection the key criterion
for policy was the idea of sustainability, i.e. the reduction of all forms of environmental degradation
to levels that do not cause lasting damage or permanent loss.

We have to take into consideration not only the costs of a business but the externalities as well. For
example, if a factory producing cement which is located in a small town the firm may dispose of
some of its waste in a local river or discharge dust into the atmosphere. Lorries making deliveries to
the factory may disturb the local residents. The factory may be sited close to a local beauty spot,
ruining the view. These are examples of spill-over effects or EXTERNALITIES. The costs to the
whole of the society, the SOCIAL COSTS are made up of private costs of the businesses plus
NEGATIVE EXTERNALITIES

The new kinds of technologies used in our modern age can disrupt the balance of nature. All
different plants and animals in a natural community are in a state of balance. This balance is
achieved by the plants and animals interacting with each other and with their non-living
surroundings. The plants of the community are the producers, they use carbon dioxide, water an
nitrogen to build up their tissues using energy in the form of sunlight. The food relationship
between the different members of the community (plant-eating animals, flesh-eating animals) are
known as food chains or food webs. If we intervene into this, we can disrupt the balance of nature
and cause global environmental damage.

1. Deforestation

It has been estimated that tropical rainforests are being cut down and burned at the rate of 11
million hectares a year - about 20 hectares a minute. At this rate all tropical rainforests will have
disappeared within 85 years. As a result of the spread of environmental destruction some 2500
plant species and more than 1.100 species and subspecies of mammals, birds, amphibians, reptiles
and fish are threatened with extinction. Untouched tropical forest could contribute to the balance of
nature. If we cut down most of the trees, we can cause soil erosion: rain can wash away the fertile
layer of the soil. After this no plants can grow there. So we can disturb the balance of food chain.

2. Pollution

Manufacturing and other business activities pollute the air, the water and the soil. Chemicals and
pollutants get into the air. Because of this acid rain may fall, which can damage plants and through
plants animals, too. Oceans and seas cover 70% of the world. They are heavily damaged by
pollution, habitat destruction and overfishing.

3. The depletion of the ozone layer.

The ozone layer shields the earth from excessive ultraviolet radiation. It becomes even thinner
because of the frenon gas, which can be found, for example, in deodorants. Recently companies
and firms make environment-friendly, ozone-friendly products. We can find a sign, e.g. a globe
sign on these.

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4. The Greenhouse Effect

The greenhouse effect is caused by an increase in the amount of carbon dioxide in the atmosphere.
It leads to changes in the Earth's climate. The amount of carbon dioxide in the atmosphere will
double in the next 50 years and the temperature worldwide will rise by 2 Celsius. Although a
temperature rise of 2 Celsius may not seem significant, the local effects may be much greater: In
polar regions a rise of 10 C by 2025 is expected and in Northern Europe a rise of 4 C. The southern
states of the USA can expect hotter summers and less rainfall, leading to worse conditions in
agriculture, and the Mediterranean region will be much drier and hotter than now. As a
consequence of a temperature rise, the polar icecaps will start to melt and the oceans will expand as
more snow as ice melt. It is predicted that the level of the sea will have risen by 0.5 to 1.5 metres
by 2025 and this will affect many low-lying areas of the world. Millions of people today live less
than one meter above the sea level. Perhaps the first effects are already being felt.

5. Nuclear power

We use nuclear energy to produce electricity. But power stations make a lot of nuclear waste too,
and people have been afraid of the possible disasters since the Chernobyl disaster. Besides, there is
the problem of the safe disposal of radioactive waste.

6. The ‘Greens’ as a political power

The Green Party’s share of the vote went up from zero to 15% in the recent European elections.
They are a radical political force and unlike other parties they are against nuclear power and
nuclear weapons. The Green Party attempts to exert pressure on public policy and to influence
industry.

7. Environmental pressure groups

The three main non political environmental pressure groups are the Friends of Earth, Greenpeace,
and the Worldwide Fund for Nature (WWF; Természetvédelmi Világalap). These organisations
have been working for many years, raising funds and raising public awareness of the need to
protect the environment. Their activity is to propose specific solutions to specific problems. If a
power station is planned or a new motorway is to be built, they want to make sure it is done with
the least possible damage to the environment. Recently we can choose environment-friendly,
ozone-friendly products. Companies that are not `green' will lose business to those who have a
green image.

Greenpeace:

Peaceful direct action by Greenpeace has invoked the power of public opinion which, in turn, has
forced changes in the law to protect wildlife and to stop the pollution of the environment.

Environmental Protection

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Environmental Protection

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Témakör 5 1

Business and the Environment

3. The depletion of the ozone layer.

4. The Greenhouse Effect

6. The ‘Greens’ as a political power

7. Environmental pressure groups

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