Does nature pay a price for economic growth?

There is an argument, that as economies grow, the resultant pollution, waste, land clearing and climate change causes nature to decline. And as economies grow, so does the consumption of resources and energy.

Our resources are finite and yet we in Australia seem happy to extract them and sell them to other countries, (and sometimes we even buy them back again!), all in the name of growing our economy.

In 2018, Australia exported 887 million tonnes of iron ore, about 80% being sold to China. In 2019 Australia imported steel, mostly from China, to the value of $6.2 billion. (In the 2019-2020 financial year, the value of Australian iron ore exports was over $101 billion.)

Mt Tom Price iron ore mine WA (Wiki Commons)

A little earlier this year, 2020, Australia became the world’s biggest exporter of liquid natural gas. The extraction, transportation and burning of LNG releases carbon dioxide and methane (the two worst greenhouse gases) into the atmosphere. Emissions from Australia’s gas industry alone far outstrip any gains we have made from shifting to solar and wind energy generation.  

Coal seam gas field Qld (Lock The Gate)

 (Recently it was announced that two gas terminals will be built in Port Kembla NSW and Crib Point Vic, to accept gas imports from Japan, USA and other countries!?)

Let’s not even start with coal.

Loy Yang coal-fired power station Latrobe Valley

The extraction and export of our finite natural resources in the name of growing the economy, puts a considerable burden on the environment. However, it is not hard to argue that if economic activity is curbed, jobs are lost and standards of living decline. So, what is the answer?

Some researchers say that the environmental protection sector is capable of itself contributing to economic growth.

Scientists, technicians, skilled and unskilled workers are needed for designing, constructing, installing and maintaining wind and solar generators. Someone has to design, build and maintain sewerage systems and water treatment plants. Some people already are becoming very rich inventing and producing electric cars, super storage batteries, etc. 

Wind turbines Wonthaggi

Clean and green environments attract developers (some of who then destroy the very resource that makes them wealthy). Clean air, pure water, healthy food and a balanced and sustainable natural environment all contribute to a healthy community which results in benefiting the economy rather than costing it.

Any decline in nature is not due to economic growth per se, but more to the lack of effective policy and planning strategies to properly manage the issue. Governments at all levels are responsible for this.