Due to industrialisation and globalisation, the social economy has developed at a significantly high rate. With this advancement, many of world’s natural resources are facing the risk of scarcity. Due to this, using natural resources for industries manufacturing and pressure for protecting natural resources has grown significantly. The development of a country’s economy has a direct relationship to the pollution caused by the industries. The growth of industries has led to degradation of the environment. The progress in the economy leads to better living conditions for people, but due to the pollution in the environment, the health condition has dropped. Many experts believe that the increase in growth leads to higher demand for a cleaner environment. The impact of industrial pollution can be seen in different countries such as the United States, China, India, and many Mediterranean countries. To resolve these issues, the government are formulating various laws and regulations for industries.
In recent years, many types of research are conducted to determine the relationship between economic progress and pollution in the environment. This report is focused on analysing the relationship between a country’s economic progress and the pollution caused by industries. The relationship will be evaluated from the perspective of various developed and developing countries.
The primary objective of this research is to analyse the relationship between economic growth and the pollution caused by activities of industries. The research will be focused on the evaluation of the impact of industrial pollution on different countries. The report will include different theories and research conducted by various experts on the same topic. The secondary objective of this report is to provide recommendations for rapid economic growth of countries without enhancing the rate of pollution by industries.
The report focuses on the perspective of different countries and their relation between progress and pollution. The examples of United States, China, India and Mediterranean countries, will be taken to understand the effect of pollution and its assistance in the growth of the economy. Various theories and research conducted by an expert on the same topic will be evaluated as well, to get a deep understand of the topic. The recommendation for reducing industrial pollution shall be provided to different countries.
In modern times, industries of a country assist in the rapid development of its economy and also aid in enhancing the living standard of its peoples. Due to industrialisation and urbanisation, the number of industries has grown substantially. According to Panayotou (2016), many countries give encouragement and support to these industries because they assist in enhancing gross domestic product (GDP) of the country. The products of industries are exported and imported by countries to enhance their global footprint. According to CIA World Factbook, 2016, China, European Union, United States, Japan, Germany, and India, are the key players in industrial outputs.
As per Omoju (2014), with the advancement in economic growth, the rate of pollution has also been increased in various countries. The living conditions of peoples have improved significantly, but the increased rate of pollution caused different health hazards for peoples. There have been many types of research to understand the relationship between economic progress and pollution, but the evidence of economic progress directly related to increase in pollution has been conflicting. There are several reports proving the impact of progress has enhanced the amount of pollution in countries, due to excessive use of resources which are harmful to the environment. But in modern times, the government has formulated strict policies for industries to use natural resources for manufacturing which reduce pollution in the environment.
According to Bella (2003), after achieving economic growth, the demand for clear atmosphere increased in a country. The government is required to formulate strict pollution policies and the industries are required to use efficient and natural energy sources of production. The primary change happens in the perception of consumers since they prefer cleaner environment. The customers use pollution free product, forcing industries to manufacture products without polluting the environment. But experts believe that this process can reverse without proper implementation of economic, urban and energy regulations.
In order to enhance their economic growth, countries promote their industrial manufacturing because it allows them to trade products with developed countries. The promotion of industries enhances countries net income and GDP. There are several factors of industries that enhance the amount of different pollution, such as air pollution, water pollution, and sound pollution.
According to Markowitz and Rosner (2013), in order to enhance their net income and GDP, various countries promote and support the working of industries, which allow them to operate their business according to them. Many companies avoid the policies created for the preservation of the environment. The government did not strictly apply their pollution control regulations over the industries to enhance their profits. It is necessary for industries to manufacture at maximum rate to achieve economic growth.
Schnelle, Dunn, and Ternes (2015) provided that, most of the industries in developing countries, such as India, China, South Africa and Swaziland, do not have the latest technology for the manufacturing process. These industries implement outdated technologies in the manufacturing process which eventually enhance the rate of pollution. Modern machinery is capable of reducing pollution to some degree but the majority of industries are not able to use them in their process.
The number of small scale industry is significantly high in many countries. Loehr (2012) provided that, these countries often escape the environmental policies created by the government since they have small operations. Small industries in countries, such as South Africa, have to use natural minerals for manufacturing of products, which are hazardous to the environment and causes soil and water pollution (Muduli, Govindan, Barve and Geng 2013).
The research conducted by Hellawell (2012) provided that, the primary reason for water pollution ns soil pollution is the ineffective waste disposal system of industries. Usually, companies drop their manufacturing waste in fresh water sources such as lakes, rivers, and oceans. Due to this wastage, the sea life also gets affected and dies because of the harmful chemicals. Harmful chemicals such as Mercury, Asbestos, Lead, and Sulphur, cause high damage to people’s health like cancer.
According to the book of Harris and Roach (2013), to enhance their reduction rates, companies often use natural minerals taken from the earth. These minerals cause soil pollution if they dropped over the surface of the earth. Govind and Madhuri (2014) provided that, the oil spills from vessels can be hazardous for marine life.
According to Hamit-Haggar (2012), the cause of global warming is Carbon dioxide (CO2) gas which has the capability of absorbing thermal radiation. This cause climate change and global warming in the world. Generally, the energy used by industries emits a large quantity of carbon dioxide gas in the environment, which causes CO2 emission. Although the CO2 emission rate has dropped in past decade, still industries are the primary source of contributing carbon dioxide and greenhouse gases in the environment (Shahbaz, Tiwari and Nasir 2013).
As per the research of Wang, Chen, and Peng (2016), many industries did not properly plan their disposal system or location efficiency at the time of establishment. Most of the industrial townships are established without any effective planning, which made it difficult for industries to manage their disposals and proper utilisation of energy. Most industrial townships are situated near highly populated areas or near fresh water sources because it helps industries to get cheap labour and free disposal systems.
As we have seen above there are several reasons for increasing rate of population in the environment. Many of these reasons are affected due to the economic growth of countries. For example, in order to enhance their economic progress, countries promote small scale industries, which are high contributors to industrial pollution. Many countries usually provide land for industrial townships near fresh water sources which cause water pollution. To enhance their benefits countries do not strictly apply pollution regulation on industries (High 2015).
Many experts such as Taylor (2014), suggested that in order to enhance their productions, industries are required to utilise a large number of natural sources. Countries such as South Africa are highly dependent on natural resources for their industrial productions. Increase in usage of natural resources lead to the production of large quantity of waste and garbage, and lack effective waste disposal system causes pollution (Chen, Ebenstein, Greenstone and Li 2013). This waste decreases the overall living quality of peoples in a country. Hu and Cheng (2013), argues that pollution puts whole country’s economy at threat, therefore, it is necessary for countries to focus on natural resources preservation instead of rapid economic growth.
At the same time, many experts have completely opposite theories regarding the relationship between economic progress and pollution. They believed that in order to enhance the quality of the environment, it is necessary for countries to increase their economic growth rate. With the increase in income, the demand for quality goods and services, and overall environmental quality increase as well. The economic growth will lead the government to establish strict environmental protection policies over industries. Kaika and Zervas (2013), argues that, in the longer run, the rise in income will lead to improvement in an atmosphere of the country. Al-mulali and Tang (2013), believes that low economic growth is the reason of decrease in quality of atmosphere of a country.
Other than these experts, there are several other experts who claim that relation of economic progress and pollution can be both positive and negative because it is depending upon the development of a country. They believed that if the growth of a country reached a certain level, where the demand for efficient infrastructure and clean atmosphere increases. As mentioned by Kuznets, the economic progress and environment growth formed an inverted U form, which is called “Environmental Kuznets Curve” (Figure 4). According to this curve, in the beginning of growth, the pollution level is limited but along with the advancements in industries, it rises to the top since usage of resources increase wastage (Shahbaz, Lean and Shabbir 2012). But, after achieving a high enough growth rate, the perception of peoples and government changes, which increase the demand of cleaner environment. The country achieved this by implementing efficient energy sources and efficient wastage disposal systems. The research of Lau, Choong, and Eng (2014) provided that, this change increases the quality of the environment and stabilise the pollution.
In order to determine the relation of economic progress and pollution, it is important to ascertain different example of countries. The primary countries with high industrial resources include United States, China, India, South Africa and many European countries. Many research has conducted on these countries to ascertain industrial pollution retain with their growth.
In case of China, it is the largest developing country worldwide. There are a large number of industries established in China which contributes more than 72 percent of their GDP. A research conducted by Lou and et.al. (2014) provided that, the pollution rate of China is significantly high, but just like London, due to environmental Kuznets curve, the rate of pollution is decreasing in China. In starting of Chinese development the industries use natural resources which cause a high amount of air pollution (Figure 2). But after the output of industries reached 45,000 to 70,000 Yuan’s, the rate of industrial pollution started decreasing. In China, the demand for clean air has increased as well, which leads to efficient use of natural resources and adoption of strict pollution policies by government. With the help of innovation in modern technologies and implementing of pollution policies of the 1990s, the rate of pollution has reduced in 31 cities of China. This downgrade establishes the effect of inverted U form between economic progress and pollution.
In a research conducted by Acar and Tekce (2014) in Mediterranean countries, the relation of economic growth and pollution has been established. The research provided that Mediterranean countries are one of the richest as well as one of the vulnerable places. In order to achieve economic growth the industries, such as iron, steel chemical and much more, use fossil fuels, causing growth in carbon dioxide emissions in the atmosphere (Figure 1). The research shows an S shaped curve in the relation between GDP per capita and carbon dioxide emission per capita. But after achieving a certain level of growth, the S shape disappeared. The research has shown that the rate of pollution decreases after achieving a certain level of growth, in selected Mediterranean countries. But the research also provided a risk of reversal in the curve, if the suitable urban, economic and energy regulations are not maintained.
In a study conducted by Levinson (2015) over the United States, the GDP has doubled in previous 30 years while the rate of pollution caused has decreased. This proves the principles of environmental Kuznets curve but it also shows the requirement of strict environmental regulations. The research provided that rich household help in reduction of pollution, by consuming less pollution causing products. The household of 2002 is less polluting than the similar income households of 1984 (Figure 3). The research established that this change in the United States has caused due to modifications in producing technology. However, the research provided that, the main change comes due to modification in consumer consumption instead of rising in income, and this has caused due to partial effects of change in consumer preferences and strict implementation of environmental policies.
As we have seen above, the growth of economic causes high rate of industrial pollution, but after achieving a certain level of growth, the rate of pollution starts dropping in countries. Following recommendations can be applied by countries to ensure low pollution growth while achieving their growth target:
Conclusion
The above report concluded that economic growth does increase the rate of industrial pollution in a country. The industries use inefficient method for manufacturing which is hazardous for the environment. The government did not apply strict pollution regulations over the industries for their own benefits, which lead to a significantly high rate of pollution in a developing country. But as per environmental Kuznets curve, the rate of pollution started decreasing once the country achieved a high level of economic growth. The reason for this decrease is that in the beginning of economic growth the income level of consumers is low and industries use natural minerals to manufacturers cheap products. This helps in the production of low quality and low-cost product that cause a high rate of pollution. But, the perception of consumers changes after high growth in country’s economy. The consumer prefers to use high-quality products that did not pollute the environment and the demand for clear atmosphere increases.
This proves the relationship between economic progress and pollution caused due to industries. In order to maintain a low pollution rate in high economy countries, it is necessary to constantly maintain the economic, urban and energy policies of industries. The report provided that economic growth causes pollution in a country, but after achieving such growth a country can reduce their pollution rates.
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