With the help of global examples and innovative policies, India can choose to use economic growth to develop green technologies that can help protect the environment and synchronise development with eco-conservation
Economic prosperity and growth is exacting a major price on the environment by increasing pollution to unmanageable levels and creating complex environmental challenges that are intertwined with economic progress. The ongoing crisis in Greece, for instance, has proved the existence of a strong correlation between pollutant concentrations and economic indicators and the role played by economy in determining the quality of environment.
According to a research, due to the financial crisis the pollution levels in Greece have dropped by 40 per cent, with a significant drop recorded in nitrogen oxide and sulphur dioxide levels. The industrial emissions too have undergone a 30 per cent drop. Though the unstable economy has severely affected the population and is pushing Greece to the brink of exclusion from the Eurozone, on the positive side the economic recession has resulted in proportionally lower levels of pollution in the country.
Environment is not spared even when the economy is doing well. China is an excellent example wherein rapid economic growth and industrialisation have only contributed to fast deteriorating air and water quality levels. Although hailed as the fastest growing economy that has brought prosperity to millions of people, the environmental and health impacts of China’s industrialisation are proving to be expensive.
Instances of premature mortality and morbidity have risen sharply, whereas alarming depletion of ground water and lack of breathable air have added to the problem. As China battles with the consequences of prosperity, the challenges being faced by the country have become examples of what to expect when a balance is not ensured between fast economic growth and diligent environmental conservation.
Emerging countries with a potential for rapid economic growth have much to lose, unless this crucial balance is introduced and maintained. India can create a model by emulating the example set by Denmark in this regard. Denmark has promoted economic development that is in harmony with the environment, especially in the energy sector. With the aim of creating a green and sustainable society, Denmark currently derives more than 20 per cent of its energy from renewable sources such as wind and solar power and aims to reach 100 per cent reliance on renewable power by 2050.
The Danish success is a combination of a Government that is committed to operating an economy that does not take a toll on environment and an aware population that utilises natural resources responsibly and contributes towards safeguarding the environment. The Danish cycling culture is an apt example of an environmentally-conscious population. The capital, Copenhagen, has around 400 km of cycle paths, and about 40 per cent of its population commutes to work by bicycle. Measures such as these have helped Denmark avoid the negative impacts of economic development on the environment.
India too can bring about a balanced economic growth that complies with nature.This can be ensuredby reducing the country’s carbon footprint by encouraging efficient renewable energy generation and increasing the rate of reforestation. The Government must also realise that in order to create true well-being, India cannot over draw from the physical resources, as it would tantamount to borrowing from our future generations.
To prevent the economy from penalising the environment, it is pertinent for India to increase the usage of Genuine Progress Indicators, or the GPI, as reference point, instead of only depending on GDP as a measure of progress. The GPI, with 26 indicators, consolidates critical economic, environmental and social factors into a single framework in order to give a more accurate picture of the progress and the setbacks made.
India can assess the environmental costs of economic progress better by widening the application of GPI to include more indicators from the environmental arena. Currently, the GPI accounts for the pollution, depletion or degradation of wetlands, forests, farmlands and non-renewable minerals (including oil) as current costs. The GPI can be balanced against the GDP in order to arrive at economic growth that is eco-friendly. In addition, initiatives such as capital availability at low interest rates for green product manufacturing businesses and assistance for related research and development could help neutralise the adverse impacts of economic development on environment.
With the help of global examples and innovative policies, India can choose to use economic growth to develop green technologies that can help protect the environment and synchronise economic growth with eco-conservation. Once this is ensured, India can achieve an optimal and balanced economic growth that helps in building a robust economy and restores resources for use by future generations.