DEFORESTATION

Impact of Deforestation on Environment and Economy

Impact of Deforestation on Environment and Economy

Introduction

Deforestation is the loss of rainforests on a large scale which has now became a serious problem all over the world. According to the National Geographic research, there are some countries which are comprises of world's major rainforests are now involved in serious deforestation like Congo, Thailand, Brazil, Indonesia and some parts of Eastern Europe. Deforestation on such a massive scale is a threat for the environment as well as economy of the world.

Thesis Statement

Declining rainforests cause a serious impact on environment and economy.

Discussion

Causes and Agents Responsible for Deforestation

Unrecognized Market Value

Fair market value is not provided to the forests' landowners. So the landowners use their land for activities that destroy the forests. For example there is no monetary value for the protection provided against the soil erosion and sedimentation or the barriers forests provide against flood. Government does not provide any thing in return for the irrigation or for their hydropower dams. The private sectors like fishermen and farmers also do not provide anything for the watershed provided by these forests.

The Role of Market in deforestation

Yates enhanced the importance of market and fair market value to the society as it helps to solve the problem of what, how, and for whom to produce (Yates, 1992, pp. 20-1). This explains the role of market, as consumer do not have knowledge about the product they buy and the damage that product cause to the environment, their increased demand results in increase of product supply which ultimately results in destruction of natural resources (Himmelweit, S. and Simonetti, R., 2004, pp. 104).

Government Activities

There are various government activities that result in decline of rainforests like cutting of forests for oil extraction, mining, making roads and highways etc. Illegal logging by various government agencies to protect forests and to provide the supplies to wood market, also results in deforestation.

Private Corporations

Private investors are more interested in quick profits and they do not care for the benefits of society or maintenance of environment and natural resources. This also results in the production of commodities that cause deforestation. Another cause is the higher discount rate offered by the private corporations for the poor community. The utilization of cheap natural recourses and increase in sales increase the rate of production and deployment of the resource.

Impacts of deforestation on the Environment and Economy

Loss of Wild Life and Natural ...