8.6 Different perspectives about the issue of environmental sustainability

Based on the available data, global GDP growth since 1750 has averaged an impressive rise of 1.5 per cent per year. This has caused each successive generation to be one-third better off than the one before it. Put another way, while it took the global economy 6000 years prior to 1750 (the start of the industrial revolution) to double in size, since 1750 on average it has taken just 50 years! Meanwhile CO2 emissions have followed a similar exponential pattern when graphed against global GDP.

However, there is a bit more to it than this. Not all output impacts environmental sustainability to the same extent. Take the following illustrative examples: • Products produced locally, rather than imported and transported across the world in ships and planes, have a lower impact on CO2 emissions and climate change. • Products that use renewable and biodegradable natural resources can be less damaging than those using non-renewable and non-biodegradable inputs. • Products that are single-use and then thrown away are clearly less sustainable than those that are more durable and can be repaired for further use. • Products whose demand is based on fashions that change and then are no longer wanted by their owners end up as waste where they are thrown into the environment. • The production of services tends to have lesser environmental impacts than goods that use natural resources and end up as waste in the tip where they may or may not be broken down by the environment. • The production and consumption of some foods like meat tend to have far greater negative impacts on the environment than plant-based foods. Some types of meats (e.g. beef) are also worse than others (lamb, chicken and fish). • Some types of goods can be recycled where inputs can be reused many times. They can help to create a far more sustainable circular economy with fewer environmental impacts.

So, to an extent, the environmental sustainability of growing the size of the global economy depends on the type of things we choose to produce.

The growth rate in global population affects environmental sustainability There is a close relationship between the growth in the world’s population and the degree of environmental sustainability. Given the resources available, our finite planet can only support a certain number of people and allow them to maintain reasonable living standards. Figure 8.15 (part 1) shows that while global population numbers grew very slowly till about 1700, they have since taken off. In fact, it took about 600 years to double in UNCORRECTED PAGE PROOFS size prior to 1534, 260 years to 1803, and just 48 years to 2022. This means that there are more needs and wants to satisfy from the increasingly scarce resources available. Figure 8.15 (part 2) shows population projections to 2100. All three scenarios or assumptions about population growth indicate that numbers are expected to keep rising till 2075 at the earliest, depending on which of the three projections (high, medium, low) is used. In other words, world population numbers will continue to put increasing pressure on environmental resources and sustainability.

Part 1 – The growth in global population numbers over the last 12 000 years

7 billion 7.9 billion in 2022

7 billion in 2011

6 billion in 1999 5 billion in 1987 4 billion in 1975 3 billion in 1960 2 billion in 1928

Mid 14th century: The Black Death pandemic killed between a 1.65 billion in 1900 quarter and half of all people in Europe. 990 million in 1800 600 million in 1700 Global life expectancy before 1800 was less than 30 years

6 billion 5 billion 4 billion 3 billion 2 billion 1 billion

The average growth rate from 10 000 BCE 190 million in the year 0 4 million in 10 000 BCE to 1700 was just 0.04% per year 10 000 BCE 8 000 BCE 6 000 BCE 4 000 BCE 2 000 BCE 2000 Global life expectancy in 2019; 73 years Source: Our World in Data, World Population Growth, see https://ourworldindata.org/world-population-growth. World population (Billions) 04 06 08 United nations population projections to 2100: 95% certainty range 16 14 12 10

Part 2 – Projections of global population numbers till 2100 0 UNCORRECTED PAGE PROOFS 02

1950 Median projection 2000 2050

Source: Population Matters, see https://populationmatters.org/population-numbers 2100

Increasingly, people around the world are becoming aware of and concerned about environmental problems and the impact of their decisions on sustainability. This is partly because of extensive research and media attention, and the formation of climate action and political pressure groups. The argument goes that when people are buying products they are more likely to make rational, pro-environmental decisions if they are knowledgeable.

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8.5 Exercise 1. Define the term, market failure, referring to two types that are relevant to environmental sustainability. (3 marks) 2. a. Outline the general relationship that exists between economic growth, population growth and environmental sustainability. (2 marks) b. When thinking about the government’s goal of promoting rapid economic growth, explain why it is not just the level of output that matters but also the type of goods and services produced, that determine the extent of environmental sustainability. (2 marks) c. Examine Table 8.2 and then rate each of the products or economic activities listed, according to whether you believe they are relatively sustainable (RS) or relatively unsustainable (RU). (8 marks) TABLE 8.2 Classify each type of production as to whether it is relatively sustainable or unsustainable

Types of production or economic activity Relatively sustainable economic activity (RS)

Relatively unsustainable economic activity (RU) Irrigated rice that uses water drawn from the Murray River Iron ore used to make steel for a house Solar panels on your roof used to generate electricity A plastic ruler Wild sardines from the Atlantic Ocean Petrol (crude oil) from wells in Saudi Arabia A coffee table made from plantation pine UNCORRECTED PAGE PROOFS Gas made from corn and sugar cane

3. a. Explain the meaning of negative externalities and how these represent a type of market failure that reduces the extent of environmental sustainability, ultimately eroding society’s living standards. b. Using Table 8.3, describe how each of the following economic activities is likely to generate a range of negative externalities, undermining society’s general wellbeing.

(4 marks)

(10 marks)

TABLE 8.3 Economic activities that may result in negative externalities, lowering society’s general wellbeing

Economic activity

Identify and outline the likely negative externality of the economic activity, noting which third parties pay the cost 1. Holding a wild and noisy birthday party at your house on Saturday night 2. Using disposable tissues 3. The construction of a new tunnel near Westgate in Melbourne 4. The opening of Sydney’s new airport in the west 5. A passenger smoking a cigar on a flight to Perth 6. Leaving the central gas heating on all day when there was nobody at home 7. Driving instead of walking to the corner shop 8. Off-road trail bike riding in state forests 9. Disposing of household rat poison down the sewer 10. Consuming a huge T-bone steak 4. a. Describe common access resources. (2 marks) b. Thinking about market failure and the abuse of common access resources, explain what is meant by the concepts, non-excludability, and rivalrous use. (2 marks) c. Giving an example, explain how the free operation of the market often leads to the overuse, abuse, and a reduced quality of environmental resources. (3 marks) d. There has been overfishing leading to reduced fish stocks in oceans. Explain why this happens. (2 marks) 5. Before answering the questions that follow, examine Figure 8.16. UNCORRECTED PAGE PROOFS

FIGURE 8.16 The production of different food has varying effects on emissions and environmental sustainability

Greenhouse gas emissions per kilo of product (eg, from deforestation, methane, machinery, fertilisers, processing, transport, retailing and packaging and disposal)

0 Beef 10 20 30 40 CO2 emissions in kilos for each kilo of food type 50 60 60 24 21 19 17 6 4 3 1.4 0.7 0.4 0.4 0.3 70 Lamb Milk Chocolate Food type Coffee Poultry Fish (farmed) Rice Sugar Wheat Bananas Root vegetables Apples Nuts Source: Data was derived from Our World in Data, see https://ourworldindata.org/food-choice-vseating-local. a. Explain the relationship that exists between our diet preferences, and the extent of environmental sustainability. (2 marks) b. Referring to the graph, identify the main types of food production that generate the highest amount of CO2 emissions per kilo of food produced. (1 mark) c. Referring to the graph, identify the main types of food production that generate the lowest amount of CO2 emissions per kilo of food produced. (1 mark) d. Diet preferences differ substantially between countries and even religions. High-income western nations tend to consume more meat, while lower-income countries consume more grains. Outline how this is likely to affect global environmental sustainability. Fully worked solutions and sample responses are available in your digital formats. 8.6 Different perspectives about the issue of environmental sustainability KEY KNOWLEDGE • the different perspectives of households (consumers and workers), business, government and other relevant economic agents regarding environmental sustainability Source: VCE Economics Study Design (2023–2027) extracts © VCAA; reproduced by permission. Especially over the last 5–10 years, there has been a growing awareness amongst households, businesses, and governments of environmental issues including climate change. There has also been a greater acceptance of 5 UNCORRECTED PAGE PROOFS the need for action. Even so, different perspectives remain, especially when it comes to deciding how to make economic activity more environmentally sustainable.