While we are all confined in our homes, away from our workplaces, the environment is rejuvenating its wounds with the virtue of absence of humanity to blemish its beauty. Over the past few decades, the economic aspect of human lives seems to have taken a big leap with extensive developments taking place by the day.
In the 21st century, the individual economic standing of humans seems to occupy a position of greater importance than the element of Mother Nature in peoples’ personalised hierarchy of things imperative for the survival of mankind. Human beings have become the perfect example of illustrating distinct forms of themselves on paper and in reality. According to the research survey “Environmental Concerns in International Investment Agreements” published by the Organisation for Economic Cooperation and Development (OECD) in 2011, only 66 International Investment Agreements, out of a survey base of 1,623 IIAs (approximately 4%) and 2 Bilateral Investment Treaties, out of a survey base of 1,593 BITs (about 0.12%) mentioned environmental concerns in their perambulatory clauses. In addition to this, many of these IIAs and BTIs also called for economic growth alongside ‘sustainable development’ for the survival of present and future generations.
However, actual figures dictate a different reality. Since the passing of the Kyoto Protocol, aimed at reducing global carbon emissions, in 1992, there has been a rapid increase in global carbon emissions, rising by about 65%, from 22.4 billion metric tonnes in 1990 to 36.8 billion metric tonnes in 2019. This rise in carbon emission has also marked a 4% growth in transmission of carbons into the atmosphere since the signing of the Paris Climate Deal in 2015.
There have also been ambiguous and implausible deductions in the economic sector in relation to the environment, taking into account the Environmental Kuznets Curve (EKC) which establishes a relation between environmental quality and economic development. According to the EKC, various factors that affect the quality of environment (usually those which tend to deteriorate the quality) worsen as economic development takes place until the average income reaches a certain mark, after which the quality of the environment of the country improves. However, this may be highly subjectable only to the countries which expand their economic sector towards the service sector.
For example, in the 28 year period between 1980-2008, carbon emissions increased significantly in India and China due to heavy expansion in the Secondary (Manufacturing) sector whereas the reduction in carbon emissions in the United States and United Kingdom has been caused as a result of expansion in the Tertiary (Service) sector.
This has also buried us under a misconception of distinguishing between ‘developed’ and ‘developing’ countries on the basis of which environmental damage caused is often classified. However, the truth remains in the fact that when nations are compared on the basis of their Gross Domestic Product (GDP) per capita based on the Purchasing Power Parity (PPP), several ‘developing’ countries overtake the ‘developed’ ones (for example, in terms of GDP per capita based on PPP, China would also be classified as a developed country and in terms of GDP based on PPP, China would overtake the GDP value of the United States). This may happen due to the contrast in costs in the Secondary and Tertiary Sector, which if would not arise, as in the case of GDP based on PPP, would make the analysis of EKC impractical.
Ultimately, economic growth and environmental sustainability go hand in hand. Environmental care centered products themselves provide an alternative to indigenous methods which cause environmental damage. There are industries which produce windmills, solar panels, turbines and other eco-friendly products which can help the society to replace traditional methods (in this case, production of Solar, Wind and Hydro Electricity instead of Thermal Power) to work for a better, sustainable future.
The need of the hour is for all humans to join hands in a way that would ensure future economic development in harmony and aid of sustainable development. Humans need to emphasize on greater capacity utilization of resources and develop methods of satisfying human need without jeopardizing their own survival.
Written by - Arnav Mehra