GLOBAL WARMING: A Threat to the Economy

Global Warming: A Threat to the Economy

Meraz Ashraf

MBA Student, (1^st Sem.) ICCMRT, Lucknow

December. 2009

ABSTRACT

As we know that the very basic things for the survival of human beings are roti, kapra aur makan (bread, clothes and shelter). But in addition to these, there is something more, among which eco-friendly and green environment is very necessary and important for various purposes (discussed later). Contrary to this, green house gases and climate change are threat to human beings as well as economy. In this regard we must know what is Global Warming? How does it affect? And what should we do to curb it.

Global Warming

       Nowadays everywhere, everybody is talking about Global Warming and Green House Effects. But, what are Global Warming and Green House Effect? is a matter of great concern. Global Warming is ‘the increase in the average temperature on the earth surface’. As the earth is getting hotter, disorders like hurricanes, draughts, floods, pollution and various diseases etc are getting more frequently.

Green House Effect

While ‘Green House Effect’ refers to the phenomena by which earth’s atmosphere traps infrared radiation or heat. Gases that cause the green house effect are the most part of natural compounds water vapor, corbondioxide, chlorofluorocarbons (CFCs), methane (CH₄), nitrous oxide and some others. We can say ‘Green House Effects’ as the difference between the Earth’s surface temperature (Ts) and the radiative temperature (Tr). If no Green House gas is present on the earth surface, the average temperature would be as low nearly to (-) 19^oC well below the freezing point of water, there is no life possible. But this is due to Green House Gases that the average temperature of the earth remains nearly to 15^oC which sustains the life comfortably. Therefore, green house gases are vital element of our life. But at the same time we cannot deny that “too good or excess of a thing is bad”.

Causes and Effects

Many people think that how the Global Warming can affect the economy; it cannot affect the economy. But the reality is something different from this. Global Warming does affect the economy of a country or the world as a whole, directly or indirectly. The choice we make and the product we buy, test our commitment to maintain healthy planet. When we burn fossil fuel such as oil, coal and natural gases to run our cars, light our home, we pump corbondioxide (CO₂) into the air. And chlorofluorocarbons (CFCs) that come from our refrigerators, air conditioners (ACs) and supersonic jet aircrafts also, are very harmful to a country and the world as a whole. Because these gases go into the air and deplete the Ozone layer. Here it’s worthwhile to mention- What is Ozone layer? And how is it harmful to us?

Well, Ozone is a ‘blue pale gas’ mainly present in the Stratosphere at the height of almost 30 km. above in the atmosphere, in the form of a layer known as ‘Ozonosphere’. The ozone layer helps to sustain life on the earth by absorbing a great deal of lethal Ultraviolet (UV) light radiating out of the Sun. As this layer depletes, its absorbing capacity (of UV rays) decreases. Consequently there is increase in the UV rays, which has various adverse effects e.g. due to increase in UV rays, there is decrease in the photosynthesis process which leads to decrease in the number of plants, consequently hindrance in the development of a country. UV rays also cause various diseases (especially skin related) which affects the Human Development index (HDI) of a country. The productivity of crops decrease and the loss of various plants from terrestrial and agricultural habitat, green house effect too, are due to increase of UV rays.

     

      According to the World Bank estimates, disease attributed to Ozone layer depletion are about three lakhs causes of Skin Cancer annually and seventeen million causes of Cataracts. And all these bad effects of Ozone depletion are definitely going to adversely affect to the economy. The most direct evidence of Global Warming comes from analysis of temperature records covering the last 150 years. Recent re-examination of the records confirm the IPCC’s (Intergovernmental Panel on Climate Change) original view that the global mean temperature has risen from 3^oC to 6^oC by this time. Leading climate scientists are now 90% sure that the human activities are heating up the planet. Green House Gas has increased since 1750 due to consumption of fossil fuels, new form of land use and agriculture, cutting of forests and industrial wastages. Then harmful gases released by the industries’ chimneys, cause increase in CO₂, which has adverse effect on environment.

A manager of an industry must be serious and find out corrective measures to curb these gases, as a social and ethical responsibility at least. According to the report of Lehman Brother- India’s GDP growth would dip by 5% for every two-degree increase in temperature and 2-3% dip at global level. And if temperature rises by 6% the GDP of India would dip by 15-16% and it’s due to non-linear effect of climate change. Moreover, our economy (India’s) grew by 6.2% last quarter, igniting the hope that our economy is emerging from the global financial crises. However, a usually dry monsoon season is threatening to stop this rebound before it starts. But I don’t wish so to happen.

The Global Warming effect clearly can be seen that we are facing low rain and late rainy season in high precipitation areas. And this year in India the average rainfall is 29% lesser than that of previous year. Contrary to this, in many drought prone and less precipitation areas, we are having excess of rainfall and very recent evidence we can see in South Indian states. In this way we see that we cannot neglect the agricultural part which mostly depend upon rainfall and contributes almost 1/5^th of India’s GDP. The effect of Global Warming is very much true and clear from that Kashmir- which once had a warm subtropical climate substantly change into colder temperature climate region. Apart from that, the sea level is rising very fast and will rise between 18-36 cm. until the end of the century. Mumbai (Bombay) and Chennai which are contributing a lot in the economic development of the country, are facing the problem of sea level rising. The Glaciers of Himalaya’s are melting very fast for which our government is to take serious action from our own side.

Melting Glaciers in Himalaya

Thus we see that the Global Warming and Green House Gases do affect our economy and the world as a whole. And if we talk about the main contributors of Global Warming and Green House Gases effects, Lehman Brother said, “the US, the European Union, Japan and Russia estimated jointly accounted for nearly 70% of the build up for fossil fuel and CO₂ between the years 1850-2004.

Corrective Measures

Huge amounts of money are being poured in clean energy projects, carbon trading, environmental and energy fund. Though so many steps have been taken and still are in progress (to prevent and curb the Global Warming) such as- Global Environment Facility (GEF) - 1991, Kyoto Protocol (KP) - 1997, International Carbon tax, Tradable Quotas, and Tradable Pollution Permits etc. at international level, and so many others at national level also. Yet the implementation is not up to the mark. The US being one of the main contributors to the Global Warming increase, a report says that the British Prime Minister Tony Blair’s latest effort to enlist the President Mr. Bush (a close ally in 1997-Kyoto Protocol) in reduction of Green House Gases but Mr. Bush declined it. Is it not a negligence of the horrible effects of Green House Gases? Think!

Contrary to this, there a hope due to new Obama Administration is taking positive and corrective steps to curb it. The risk of the consequences of ignoring Climate Change may be very bigger than that of financial system. A scholar has very rightly pointed out- “now the lesson we can draw out from this recent recession is that we can boost demand in the best way possible by focusing on low carbon growth in future including greater public spending on mass public transport, energy and green technology”. With the ‘Copenhagen Treaty’ talks looming, the blame game has begun. China condemns Japan’s climate plan, France demands that Canada and the US do more to curb and prevent Global Warming, Europeans squabble among each other.

Now it is turn to India, as for the ‘Copenhagen Treaty’ is concern the figure is very much positive. Very recent, in the last days of October 2009, our Prime Minister Mr. Manmohan Singh announced to start ‘Copenhagen Treaty Programme’ from Kashmir in coming months. Here the point to be noticed is that other countries must take this horrible issue very seriously and implement such policies very carefully and responsibly as our country is doing. Because “many a drops makes an ocean” and “unity is strength” holds true here in such complicated issues.

Prevention of Global Warming: The Managers’ Point of View

“Prevention is better than cure”. Nowadays, in the time of Liberalization, Privatization and Globalization (LPG), managers play very crucial role in the successful running of organizations. And managers of the organizations are supposed to soldier the ethical and social responsibilities while running their organizations, since they also reside on the same Green Planet. The following are the ways which managers are practicing and/or should be practiced in order to curb the Global Warming and Climate Change. And evidences show that they are very much helpful, if practiced properly.

Ø It is fact that automobiles cause 20% of the Global Warming, due to the ‘Internal Combustion Engines (ICE)’. On the other hand, vehicle running on electricity and hydrogen emits virtually no pollution substance. Managers should produce and encourage the customers to use such electricity and hydrogen base vehicles.

Ø Paper bags instead of plastic bags which are not recyclable and dangerous to ecology, must be manufactured and utilized. We should reduce the use plastic bags. And we know that daily millions of bags are being carried by people in the entire world.

Ø As the population is increasing very fast, everyday new homes are being constructed. These in addition to existing, need to be painted. In this regard, ‘Nisan Motor Co.’ has launched environment friendly water paints which contain half the amount of volatile Organic compound compared with conventional paints. We should use it and encourage the managers to produce things like this.

Ø In this IT age, a very large population of the world is using electronic machines, devices and gadgets. And after their use, the electronic wastage cause serious pollution and health problems because these contain lead, cadmium and brominates flame retardants which are harmful. Apart from this various industrial wastage and harmful gases from their chimneys adversely affect our environment. For this managers should take corrective steps to curb these things, as they can do it in better way.

Ø At present modern time, there are very large numbers of people who are wearing jeans clothes. And ‘Lenzing’ is presenting an innovative eco-denim concept TENCEL. Replacing cotton clothes with TENCEL^© reduce the areas of cultivation for cotton by 25%, the consumption of water required to grow cotton can also be reduced by 25% (almost). By using these we should cooperate and encourage the managers for their further corrective steps of Global Warming.

Ø Eco-shoes which are made of such as recycled rubber, recycled plastics, and textiles and synthesis and waste products which are recyclable. These shoes not only contribute to curb the Global Warming but also very comfortable to our feet.

Moreover, Global corporate are looking the Copenhagen Climate Summit (COP15) in December 2009, to provide direction in low emission, according to Mr. Johnson, CEO of Pricewater Cooper (PWs), Australia.

Apart from these, we can also do the following things as an individual, group, community and at district, state and national level also, in order to curb the harmful effects of Global Warming.

1.     We can choose modern technology in different areas of work which will definitely reduce the use of fossil fuel.

2.     We can have ‘renewable energy’ solution such as- wind and solar power can reduce our reliance on coal, the burning power planet, and the largest source of Global Warming pollution the US.

3.  Replacing the ‘Incandescent Light Bulb’ with the ‘Compact Fluorescent Lamp (CFL)’.

4.     We should not cut the forests and must plant more and more plants and trees.

5.    Drive smart- a well turned car with the properly inflated tires burn less gasoline, cuts pollution. We can use bicycle or even walk on-foot for short distances.

6.  Reuse! Recycle! Producing new papers, glasses and metal products from recycled material, save 70-90% of energy and pollution including CO₂.

7. We can mount a global campaign against Global Warming. And so many others corrective measures also we can implement depending upon one’s situation.

Conclusion

  

     Though it sounds good that we have entered modern and developed era from the primitive society yet we are neglecting and not taking care seriously about our environmental issues. We should not come up and develop ourselves at the cost of Global Warming which consequences can be very horrible, terrified and uncontrollable for us.

ICCMRT: Institute of Co-operative & Corporate Management, Research and Training

Lucknow
...
Enjoy it @ Facebook  also-  https://www.facebook.com/MerazsPakeezaBlog

...