Environmental Economics: An Example Of Environmental Issues In Berengaria

This case has provided its readers with a perfect example of environmental economics. Our lecture notes describe environmental economics as an approach that recognizes market failures regarding the environment and studies how we can take collective action to fix environmental problems in a cost effective manner. This economic utilitarian concept involves high amounts of government intervention in hopes to legally force polluters to sustainably manager their pollution levels. This is exactly what we see in Berengaria with the government introducing legislature. In order to combat the market failure of polluting the environment with toxic chemicals from cell phones, the government imposed laws upon the manufactures, EMI, in an attempt to take …show more content…
Firstly, we must consider the wellbeing of the economies, ecosystems, citizens and future generations in both Berengaria and Kangan. Secondly, we must consider the green virtues of reducing emissions, reusing resources and recycling resources and find a way to potentially satisfy all three of them. Finally, we must recognize the principle-based considerations that the current environmental economic actions of the government fails to address, such as duty, rights, and justice-based theories. An alternative option that would consider all of these factors would be to pursue the latest technological advances in recycling plant operations. It is likely that, while initially more expensive, there is more efficient and effective machines that would work more sustainably than traditional recycling practices. This would work to minimize the negative externalities that the emissions would have on the surrounding environment. By utilizing a more “green” method of recycling, EMI could use this as a marketing advantage to justify their increased prices. It is acknowledged that today there is an increasing demand for environmentally conscious businesses both from consumers and high quality employees. By making a move to a more sustainable practice, EMI could see competitive advantage in the future which would satisfy the board and their …show more content…
He would explain, once found, the efficiency and potential profits associated with a more sustainable recycling plant in hopes of swaying the board to support his suggestion. Seeing that EMI’s consumer and main factory are already located in the country, and the government is said to be strict on environmental issues, why not beat the government at their own game and gain competitive advantage in the process? The high efficiency plant would require high skilled employees which would stimulate the Berengarian economy. While these workers would cost slightly more, projections of profits and increased market share would convince the board of their