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MANAGERIAL ECONOMICSENVIRONMENTAL

DEGRADATION IS THE COST

JUSTIFIED?PRESENTED BY:ABHISHEK SOMAL ROLLNO-2GAUTAM SHARMA ROLL NO-19RAHUL BAGGA ROLL NO- 40

ANUJ SHARMA ROLL NO- 63

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INTRODUCTION

Environmental degradation an issue ofincreasing concern for all of us.

The deterioration of the environment through

depletion of resources, such as air, water andsoil.

The destruction of ecosystems and theextinction of wildlife.

We only have one Earth to work with, and iftheenvironment is irreparablycompromised, it could mean theend of

human existence.

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EFFECTS of Environmental

Degradation

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DISEASE CAUSED BY

DEGRADATION

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Skin Cancer Cases Projection

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WATER POLLUTION

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Scarcity Of Fresh Water

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Water Pollution

British Petroleum Oil spill,The GULF OF MEXICO

Largest marine oil spill in history of petroleum industry causing immense waterpollution, happened on 20thApril, 2010.

Deep water Horizon drilling rig explosion killing 11 platform workers and injured 17

others.Releasing 4.9 million barrels of crude oil.

Causing extensive damage to marine and wildlife habitats.

Effecting Gulfs Fishing and Tourism industries.

Heavy clean up cost and damage effecting the economic factor.

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BP Spill ( contd.)

Effect on economy due to this water pollution

Total insured losses from accident could reach $ 30 million as of now.

Market value of British Petroleum decreasing from $105 billion to $ 60 billion.

Unemployed oil workers for six months due to moratorium on drilling.

Real Estate prices and transaction in Gulf Of Mexico area has decreased.

Extensive Damage to Marine and Wildlife habitats.

Gulfs fishing and tourism industry highly effected extensively effecting the economy.

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AIR POLLUTION

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AIR POLLUTION

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GRAY SMOG

CHINAS GRAY SMOG

Thick Gray Smog pollution obscures the view of Beijing and nearby and nearbyregions.

Citys pollution index reached the highest level on scale.

Air pollution resulting premature deaths and respiratory problems causing healthissues.

Acid rain effects 33% of chinas population as per NYT.com.

75% of Chinas city dwellers line below the countrys acceptable air quality standard.

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GRAY SMOG (contd.)

Economic consequences due air pollution

Annual average economic losses from air pollution is 7.2 billion Yuan.

Losing 6.75 percent of national GNP fighting against air pollution.

Human health losses to 32 percent due to air pollution in China.

Acid rain resulting in approximately 14 billion Yuan of economic losses on annualbasis.

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SOIL DEGRADATION

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Condition of Soil Globally

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Deforestation

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ECONOMIC EFFECT OF

ENVIRONMENTAL DEGRADATION

FRESHWATER POLLUTION BY PHOSPHOROUS ANDNITROGEN .

SPENDING $4.3 BILLION ANNUALY ON WATERPURIFICATION BY AMERICANS .

INCREASING WATER BILLS

MORE MONEY SPEND ON TREATMENT FOR WATER

PURIFYING. PRODUCTIVITY IS EFFECTED.

SHORTAGE OF EVIRONMENTAL RESOURCES SUCHAS DECLINE FISHRIES LEADING TO IRREVERSIBLE

COMPACTION.

Water Pollution

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VEHICLES AND INDUSTRIAL ACTIVITIESARE THE MAIN CAUSES OF AIR POLLUTIONEFFECTING PRODUCTIVITY DURING

CRITICAL PERIOD OF ENVIRONMENTALDEGRADATION.

POLLUTION CAUSING ACID RAIN ANDREDUCTION OF OXYGEN IN ATMOSPHERE

EFFECTING FOREST ANDW

ATER BODIES. $2.3 BILLION IS BEEN EXPENDED EVERY

YEAR BY GOVERNMENT ON AIRPOLLUTION.

Air Pollution

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AGRICULTURAL PRODCTIVITY EFFECTED

DEPLETION OF SOIL INCREASINGMALNUTRITION FOR FARMERS.

TILING OF LAND

LOSS OF PRODUCTIVITY LOSS OF TOP

SOIL EFFECTING AGRICULTURAL GOODSDUE TO CONSTANT TILING OF THE LAND.

LOSS OF NUTRIENTS FROM RICH TOP SOIL

Soil Pollution

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LOSS OF BIODIVERSITY

DIRECT ECONOMIC VALUE OFPRODUCTS FROM SPECIES.

THE INDIRECT ECONOMIC VALUE OF

BENEFIT PRODUCED BY SPECIES. NUTRIENT RECYCLING IN

ECOSYSTEM.

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CONCLUSION

COUNTRY ENVIRONMENTAL

DEGRADATION (% OF

GDP)

REMARKS

CHINA 8%Air and water pollution damages were nearly $54

billion a year or 8% of the GDP in 1995. Somescholars have estimated the burden of

environmental pollution at 5% of GDP. Loss dueto deforestation alone is a staggering 12%.

INDIA 4.5 TO 8% Environmental cost assessment by scholars variesfrom 4.5% to 5% of GDP due to air pollution,

groundwater mining, and deteriorating quality of

aquifers, land degradation and deforestation.

Annual economic costs of air pollution,

contaminated water, soil degradation, anddeforestation were estimated to be 8% of GDP by

Tata Energy Resource Institute (TERI)

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ENVIRONMENTALDEGRDATION

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Environmental Kuznet Curve

Use better technologyand practices to counterenvironmentaldegradationBetter Implementationof Environmental LawsCost of Defianceshould be more thanCost of ComplainceTransparent practicesby Corporation and

Public SectorChange tendency forshort term quick profits

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SAVE EARTH