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Introduction
Economics of environment as a unit is the study of the impacts of a healthy as well as unhealthy environment to the macro and micro economics. When we talk of a healthy environment, we mean an environment that is well managed such that it satisfies the current generation needs without limiting the level of utility of the future generations. This will thus mean that the environment should be protected today, for it to be of benefit to the current generation and protect it for the future.
Professor Wangari Mathai, Nobel Prize winner 2004 said If you want the future generations to live in peace, we must invest in the protection of the environment and we must train especially our young people, nature is very unforgiving, if you destroy it, it will destroy you . When the environment is well maintained it has an impact to the macro and micro economies. It may be in a direct way or as matter of consequences.
Lets take an example of well conserved water catchments areas, they will ensure that the rivers are flowing and the lakes are full. The water from the lake is then used for irrigating say flowers. The flower farms have employed a certain number of people; thus their living standards will be improved as a result. This is at a micro level. From a macro level, the flowers are exported and earn foreign exchange to the country.
This will assist in curing a balance of payment. Along the way there is the transporting, storage, packing sectors that are affected by this one sector. If the water catchments area had not been conserved, then the exact opposite of the above would happen. By the above analysis via an example, we can clearly see the benefits of conserving the environment. The environment is the source of raw materials that a country depends on in the production, these ranges from the farm produce to construction materials.
To be in a position to give an in-depth analysis of how the environment affects the various sectors of the economy as well as how the economies have affected the environment, I will focus on one area of environment and analyze it. My focus will be on rain forests. This paper therefore focuses on the economic importance of rainforests today, the reasons for deforestation in rainforests compared to the effects of deforestation in rainforests and why their cutting should be limited. It will also give a recommendation on how to conserve the forests.
Methodology
Most of the information that I will use in this paper will come from secondary sources. I will get information from environmental books, magazines, newspaper articles and the general information in the media. I will also us the knowledge that I have gained in class to expound on various issues.
Format
I will be taking a benefit that can be derived from the rainforest, analyze it from a general point of view and then give the economic impact on it. I will also have a recommendation about what should be done to reverse the bad trend.
Tropical Rain Forests
They are characterized with tall trees forming canopies, lots of rain, and warm climate. Some receives up to one inch rainfall in a day. They have a hodgepodge of species (both tree and animal). The species populace at this place is estimated at 50-90% of the entire global population. The forests cover up to six percent of the available earth surface. The rain forest is believed to provide for over million inhabitants. These areas are the home of various animals. An estimated 40 species (animal and plant) lose their life on a daily basis following the (tropical) deforestation.
Importance of Rainforests
Forests are associated with many values and this should be understood by people so that we can be in a better position to protect our forests, some of these values include;-
Climate and the Green House Effect
Rainforests are like a dark mass on the earth that absorbs heat from the sun which makes the air above it cooler hence more likely to rain. Below the dense canopy in the forest, humidity is high and steady compared to the rest of the world, they evaporate large amounts of water into the atmosphere which leads to formation of clouds that cause rain again not just in the forest but some are carried away with the wind and cause rain in other parts of the world. As rainforest clear however, they are replaced by deserts and grasslands above which the air is hotter, this discourages cloud formation and the areas remain dry, eventually, this alters the water circulation in the atmosphere altering the weather conditions of the region largely up to many miles away (Jacobs, Kruk and Oldeman 19).
The agriculture sector is the backbone of any economy; over fifty percent of the world population depends on the environment for their livelihood (Jacobs, Kruk and Oldeman 19). If we destroy these rain attracters, we will be rendering the greatest percentage of the population helpless. The country will suffer trying to feed this population. If the forests are well maintained, they will attract rainfall that will lead to a healthy productive nation thereafter.
Biodiversity
Biodiversity refers to biological variation and diversity; it is used to describe all plant and animal species living in a particular area and their complex interactions with each other and with the natural environment. With rainforests having more than 50% of the world species today, they have the most biodiversity nature on earth. People today do not understand just how much we depend on the rainforests, but it is estimated that in next 30 to 50 years rainforests will vanish if the current rate of losing at least 40 species a day continues (Gaston and John 1).
With growing industrialization and urbanization, greenhouse gasses increase in the atmosphere and this is likely to increase the harsh environmental conditions man is exposed to. The forests however play a crucial role in curtailing this through carbon absorption in the photosynthesis process. With forests destruction, carbon dioxide remains in the atmosphere thus increasing the global warming rate (Horcan 1).
These animals and plants are the ones that attract tourists in a country and the country earns foreign exchange. They are the ones that medicine can be gotten from and the expense of medical is reduced at an individual as well as national level. Some of the world economies for example the Switzerland depend to a large extent on tourism to finance their budgets.
Water Shed
Forests play a vital role in controlling rainfall run-off into water bodies, they absorb or hold rainwater up to 95% in forested areas and release small amounts at a time, and this maintains water bodies throughout the year even in the dry seasons, this clean water throughout protects myriad creatures that depend on water for their survival. When forests are cut however, there is no absorption of rainwater, this leads to increased runoff that leads to massive flooding, siltation, and soil erosion along water ways and this causes the water to be muddy suffocating myriad creatures (Hance 4).
This water that this rainforests protects is used in factories in the production of goods. It is an input that is crucial to almost all the productions that take place. The economy is said to be developed when it can feed the population and able to undertake various developmental processes (like building infrastructures) and water is needed in all this (Chiras 209).
Food Security
It is estimated that 75,000 edible plants are found in natural forests. With modern Agriculture being so vulnerable to disease, pests and climate change, the importance of rainforests is becoming increasingly important like in South Africa in the 1920s when their sugarcane was affected by disease, a forest wild sugarcane species came in handy to save the industry from being ruined. Wild coffee from Ethiopian forests secured Latin Americas (coffee) plantation from being cleared.
In Chile, Peru, as well as Ecuador a range of fruits has been cross-bred with other fruits in the wild. Forests play a major role in maintaining the food security and the world agriculture through climate change where forests boost agriculture in any given region as they increase the rainfall amounts that favor food production. Crops originating from forests include coffee, cashew nuts, and bananas, among others (Lipper 3).
A well fed population is a highly productive population. Feeding the population is the first goal of a country before the other developments are considered, so maintaining the environment will lay the platform for other developments to be laid on.
Medicines
Plants from forests have always been known for their medicinal value. However, much has not been done to acquire full benefits as per the forest potential. Pharmaceutical companies purchase plants in terms of billion dollars. Quinine, physostigmine among others is some of the forest-extracted. The potential and importance of rainforests as source of medicine has been illustrated in such reports as the World Rainforest Report, no. 26. Having more than 50% of the worlds plant species in forests, we expect an array of chemicals for different functions to be discovered and derived from the rain forests (Prance 2).
Once more a healthy population is a productive population, we need to protect the population from diseases and the forests are one source of medicine. It will have an effect to the economy because of the reduced medical bill and thus the money can be used for other developmental projects.
Homeland for Forest People
Out of the current 300,000,000 (indigenous) people in the globe, 50,000,000 have forests as their dwelling places. This populace derives their livelihood solely from these forests. They source their daily needs from the forests and it would be practically impossible for them to survive without the forests. With the growing populations however many forests are in a threat of being destroyed for agriculture and food production to feed the growing population or for settlement of these populations. Some of these populations include the Incas, Mayas, and the Aztecs (Lipper 5).
Non Material Values
Besides the material values, forests are associated with such values as aesthetic where they beautify the environment and serve as beautiful environments for strolling and relaxing of people around. They attract tourism.
Decay and Renewal
In the forest system, everything is utilized where materials like leaves and barks shed from trees and other plants mix with animal decay and carcass to form manure which is later broken down by fungus and bacteria in soil improving soil nutrients that are absorbed through the roots of trees and later serve as food for plants and animals.
Causes of Deforestation
Besides the many values associated with forests, deforestation is still high, some of the driving forces to deforestation include; overpopulation whereby with the growing number of people, more land is required for their settlement and agriculture. Corruption is another cause of deforestation where besides the tight laws and regulations, some people still manage to gain access to forests and cut trees. Inequitable distribution of resources and poverty in particular attracts some communities to invade forests and cut trees as a means of getting resources for their livelihood.
Urbanization and industrialization have also played a major role in deforestation where some industries like the paper factories use wood directly from forests to make paper. Towns and cities are also expanding today to accommodate more people and they sometimes end up expanding into forest land (Hance 2). The above causes are as a result of the human being trying to economically benefit himself with this important resource. However, he ends up misusing the resource and the resource destroys him in return. The effect is even more severe because it is in the long run as well as in the short run. Lets talk about how to manage these important resources and the recommendations.
Management of Rainforests
Considering the value of rainforests, it is important to come up with ways of managing their destruction, there are four main ways of harvesting trees; they include strip cutting, shelter wood cutting, selective cutting, and clear cutting. Clear cutting is one of the cheapest and fastest ways where all the trees are cut down and the remaining vegetation is burnt down. Clear cutting is done to allow regeneration of trees but it is likely to increase desertification where land once occupied by vegetation is made clear and this is likely to interfere with the weather and climate of the region and surrounding areas as discussed above.
It will also increase rainwater runoff which will increase the risk of flooding and drying of rivers and other water bodies as there is no water absorbed into the soil to be released later, this will also increase the risk of myriad creatures to lose their lives. Clear cutting of trees exposes soil which may increase erosion and siltation lowering land productivity. There is also a need to protect the biodiversity of both plants and animals considering that the rate at which they are seizing is as high as it is estimated (at least 40 species are lost each day worldwide).
It is therefore important to come up with ways of regulating and limiting clear cutting of forests so as to create a sustainable society (Chiras 247).
Governments and individuals need to come up with ways of controlling the amount of clear cutting on rainforests so as to protect our environment. This can be achieved through legislation where governments make laws and policies to govern their forests; this should be associated with a fine so that people do take them more seriously.
It is also important for the government to take civic education campaigns so as to make people cautious on the impacts of their acts and consequently everyone becomes responsible in watching the forests and the environment in general. As population grows every day, our forests stand a greater risk of being destroyed for settlement, agriculture and resource exploitation. There is therefore a need for the governments to come up with measures of controlling population growth (Chiras 254).
Recommendations
Every government should recognize the economic importance that the environment has on the country. It should develop policies that are meant to protect the environment. Rain forests have overwhelming benefits to the micro and macro economies. Institutions that have full power that they can prosecute those who destroy the resources should be developed and kept free from politics. The management of the environment should be given to bodies like the National Environmental Management Authority in Kenya that work independently but are supported by the constitution. Companies and the private sectors should be encouraged to embrace conservation of the environment even if they will do them as part of social corporate responsibility (C. S. R.).
Countries should join effort in this fight and ensure collaboration that will be beneficial to the environment. There should be laws that govern the use of the environment. The most effective way the countries should adopt is to educate their citizen on the need to conserve the environment.
Conclusion
The globes rainforests occupies close to 12 per cent of the entire global surface harboring 50-90 percent of the (earth) surface. The loss of these forests is therefore highly associated with loss of biodiversity, changes in weather and climate, loss of and drying off of water bodies, increased erosion, loss of raw material for industry and pharmaceuticals, increased siltation, loss of homeland for indigenous communities among others.
The most important role of forests is however to regulate rainfall and serve as a water shed for the water bodies, this protects population from not just the threat of hunger but also harsh weather conditions like global warming increased by carbon in the atmosphere that can otherwise be absorbed by the rainforests. It is therefore important to come up with measures to control and limit the clear-cutting of the rain forests. Finally, we as human beings have the potential to destroy the environment and the opposite is true, the environment can destroy us too, lets conserve it for our own good and the good of future generation.
Works Cited
Chiras D. Daniel. Environmental Science; spotlight on sustainable development. New York: Jones & Bartlett publishers, 2009.
Gaston J. Kevin and John I. Spicer. Biodiversity: an introduction, 2nd edition. New York: Wiley- Blackwell, 2004.
Hance, Jeremy. Protecting water sheds secures freshwater and saves millions of dollars. Mongabay, 2009.
Horkan, Conor. Deforestation in the Amazon Rainforest. Goodreads Inc. 2008. Web.
Jacobs Marius, Kruk Remke, Oldeman A. A. Roelof. The Tropical rainforest: a first encounter. New York: Springer-Verlag, 1988.
Lipper, Leslie. Forest degradation and food security. FAO Corporate Document Repository. 2010. Web.
Prance, Ghillean. Medicine hunting in rainforests. Reed Business Information Ltd. 1994. Web.
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