Courses : Intermediate Microeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Environmental Impact on the Economy Environmental impacts on the economy can be positive or negative, depending on the type of economic activity and the resulting environmental impacts. The following are some of the environmental impacts on the economy: 1. Environmental costs: Certain economic activities can cause negative impacts on the environment, such as air or water pollution. The costs of cleaning up and repairing these impacts, such as cleaning polluted water and air, become a burden for companies or governments who have to pay additional costs. 2. Environmental damage: Economic activities such as mining or logging can cause irreparable damage to the environment. Environmental damage such as loss of habitat or damage to ecosystems can affect populations of certain species and impact future economies. 3. Provision of resources: The environment can also provide economic benefits, such as providing natural resources such as water, timber, or petroleum. However, if these resources are used in an unsustainable manner, they can cause long-term damage to the environment and jeopardize the future availability of the resource. 4. Increased environmental awareness: The impact of the environment on the economy can also influence environmental awareness in society. The more companies and individuals take action to reduce the environmental impact of their economic activities, the more likely it is that the environment and the economy can support and improve each other's conditions. Overall, the environmental impact on the economy must be managed carefully and properly considered so that economic activities can proceed in a sustainable manner and do not damage the environment and the economy in the future. Environmental impacts on the economy can be positive or negative. In general, the negative effects of the environment on the economy are known as "environmental costs" and the positive effects are called "environmental benefits". Environmental costs are the adverse environmental impacts on the economy and society. Some examples of environmental costs are: 1. Health Costs: Environmental impacts such as air, water and soil pollution can cause health problems such as respiratory problems, cancer and other diseases. The cost of treatment and medication incurred to overcome this health problem becomes part of the environmental costs. 2. Environmental Costs: Excessive extraction of natural resources, such as excessive deforestation and unsustainable mineral mining, can cause serious environmental damage and lead to loss of wildlife habitat. The cost of restoring or repairing the environment after the damage has occurred is also part of the environmental cost. 3. Social Costs: Environmental impacts can also have an impact on people's social lives. For example, excessive air pollution can affect the health and quality of life of people living near factories or industries. This can have an impact on work productivity, income, and people's welfare. Environmental benefits are positive environmental impacts on the economy and society. Some examples of environmental benefits are: 1. Nature Tourism: The beauty of nature and the wild animals that live in it are an attraction for tourists. Tourist attractions such as national parks, beaches and mountains can provide significant economic benefits to the surrounding area, such as increased income, employment and infrastructure development. 2. Renewable Energy: The use of renewable energy, such as solar, wind and hydropower, can help reduce dependence on non-renewable and environmentally damaging fossil fuels. In addition, the development of renewable energy can create investment opportunities and create new jobs. 3. Sustainable Agriculture: Sustainable farming practices, such as the use of natural fertilizers and natural pest control, can help maintain soil productivity and reduce the negative impact of agriculture on the environment. Sustainable agriculture can also provide economic benefits, such as increased productivity and quality of agricultural produce. In order to reduce environmental costs and increase environmental benefits, governments and companies can take action to encourage more environmentally friendly practices, such as users The environmental impact on the economy can be seen from several aspects, including: 1. Environmental Pollution: Environmental pollution can affect economic activities and human health. For example, poor water quality can cause losses to the fishing and tourism industries, while air pollution can cause health problems and increase the cost of medical care. 2. Natural Resource Management: Poor management of natural resources can affect the economy, particularly in the agricultural and fishing sectors. Uncontrolled deforestation and overfishing can reduce food production and the income of farmers and fishermen. 3. Climate Change: Climate changes caused by human activities, such as greenhouse gas emissions, can affect the agricultural and tourism sectors. Rising temperatures can reduce food production and reduce the attractiveness of tourist destinations, thereby reducing the income of these sectors. 4. Natural Disasters: Natural disasters, such as floods, landslides and earthquakes, can damage infrastructure and property, and hinder economic activity. Natural disasters can cause harm to businesses and individuals, and in some cases, can force people to flee their homes and surroundings. 5. Environmentally Friendly Technologies: The use of environmentally friendly technologies can affect economic activity. For example, the use of renewable energy can reduce longterm energy costs and open opportunities to create new jobs in the renewable energy industry. In conclusion, the impact of the environment on the economy is important to understand and manage so that economic growth can be sustainable and not permanently damage the environment.