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MBA: 301 ENVIRONMENT MANAGEMENT

UNIT III
Dimensions of Environmental Management economic dimensions
technological dimensions socio cultural dimensions ethical
participatory Environment Management Integrated Environmental
Management Managing the Urban environment Managing Rural
environment

Environmental

Management

Systems

Environmental audit
I.

Environmental Dimensions
-

Healthy ecosystems provide vital goods and services to humans

and other organisms.

There are two major ways of reducing negative human impact

and enhancing ecosystem services (Human kind benefits in a
multitude of ways from ecosystem)

The first one

Management.

or

approach

This direct approach is based largely on Information gained

is

the

Environmental

from Earth Science, Environmental Science and Conservation

Biology. However this management at the end of long series of
Indirect

causal

consumption.

factors,

that

are

initiated

by

Human

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-

The

second

one

approach

Management

of

Human

consumption of resources
So a second approach is through demand management of

human resource use.

It is an indirect approach, based largely on information gained

from Economics
Everything has an Environmental Dimension and now,

more than every matter to the planet, to the Human race.

Example: Environmental Dimension of Agriculture productivity
is global food security
Management of Human Consumption
It

is

second

important

way

of

reducing

human

impact.

Consumption means profit. Consumption has direct impact on

Environment especially when it out passes, the ecosystems sustainable
capacity. This is called Over-consumption. Prolonged pattern of overconsumption can result into environmental degradation or worse,
complete depletion of resources. One of the major causes of over
consumption is over population/ population explosion. Population
control is the key to managing human consumption.
Hence the two major Environmental dimensions are :
1.

Environmental Management

2.

Management of Human consumption

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The

main

issue

involved

in

Environmental

Management

is

sustainability. At the global scale and in the broadest sense

sustainability and Environmental Management involves managing the
land, earths atmosphere, biosphere oceans, fresh water systems,
human induced climatic change etc. according to sustainability
principles.
-

In Ecology sustainability refers to how Biological system remain

diverse and productive.

Long lived and healthy wet lands and forests are examples of
sustainable Biological systems. In more general the term
sustainability is the endurance of systems and processes.

The organizing principles of sustainability is Sustainable

Development which include the inter connected domains
such economics, technology, socio-culture, ethics, morals, etc.

Ways of living ones sustainability can take many forms, from

reorganizing

living

conditions

(eg.

Eco-villages,

eco-

municipalities and sustainable cities) repraising economic

sectors (perma culture, green building, sustainable agriculture,
etc),

using

science

to

develop

new

technologies

(green

technologies, renewable energy and sustainable fission and

fusion power) to adjustments in individual life styles that
conserve natural resources.
II.

Dimensions of Environmental Management

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Environmental Management (Envt. Sustainability)
Objective or Goal : Of Environmental Management is to create and
maintain

the

state

of

Harmony

between

man

and

Land

(ie,

conservation). The objective of Environmental Management is also to

improve the human life quality.
DEFINITION
It is the management of Environment or Ecosystem in a
Sustainable manner.
Environmental Management deals with measures and controls,
which are directed at Environmental Conservation, the rational and
sustainable allocation (ie, optimal utilization strategy of finite natural
resources)
It deals with development of strategies to allocate and conserve
resources with the ultimate goal of regulating the impact of human
activities (ie, conservation strategy)
Dimensions of Environmental Management are :
1.

Economic Dimensions

2.

Technological Dimensions

3.

Socio cultural dimensions

4.

Ethical and moral dimensions

Economic Dimension of Environmental Management

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Main issue involved in the Economic Dimension of Environmental
Management is sustainability or in other words Sustainability
Economics
-

Sustainable Development requires unification of economics

and ecology in order to promote development and to protect
environment.

Here the economic issues (Economic Dimension) are closely

linked to Environmental concerns.

Ie, the Issues and concerns related environment are inextricably

linked to economic issues. For example over exploitation of
renewable resources, would undercut a countrys economy.

In order to maintain Environmental quality and ecological

balance, the concerned agencies should develop policies, that
link the Environmental sector with both economic growth and
social needs.

The key three areas of sustainability where the economic

dimensions

of

Environmental

Management

(Sustainability

Economics) focused are

(1) Decoupling of Environmental degradation and economic growth
(2) Nature is an economic externality (3) Economic opportunity
Decoupling Environmental degradation and economic growth

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In economic and environmental fields the term decoupling is
becoming increasingly used in the context of economic production
and environmental quality.
-

When used in this way it (the term decoupling) refers to the

ability

of

an

economy

to

grow

without

incurring

corresponding increases in environmental pressure.

-

An Economy that is able to sustain GDP, growth, without

having a negative impact on the Environment is said to be
decoupled.

The term decoupling refers to the breaking the link between

economic bads and environmental goods.

Ie, Sustainable development without impeding progress.

High hopes of reducing environmental degradation was raised
at the Rio summit 1992. Despite having taken mitigative
measures

against

environmental

degradation,

the

environmental degradation has continued after 1992. The world

record of the environmental degradation did not match with
good intensions.
Contributing factors to the failure of controlling Environmental
degradations
Factors contributing to the failure are

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(1)

Continued dependence on fossil fuels, population growth,

poverty, political corruption, etc.

Examples of success:
Denmark success

1.

Denmark has experienced 70% growth without increasing

fuel consumption. They have switched over to new sources of
energy.
Decoupling Chinas Carbon Emission increase from Economic

2.

growth
-

As the worlds second largest Carbon emitter, China has long

been criticized as a free-rider benefiting from other countries
effort to reduce green house emissions but not taking
responsibility for its own emissions.

But China has changed their policy and strategy of fuel

consumption,

energy

conservation,

economic

growth

population, etc and succeeded in the policy proposal of

decoupling/delinking environmental degradation on economic
growth.
3.

Decoupling the process of soil erosion from human activities

on Loss plateau in the 20th century.

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-

Accelerated soil erosion, land exploitation and environmental

degradation lead to a major pressure on the sustainable
development of Agro-ecosystem in China.

Compling the new

delinking

the

international policy of decoupling or

Environmental

degradation

from

economic

growth, China made the required policy changes, application of

new techniques, combined with traditional knowledge.
-

They have succeeded in decoupling soil erosion intensive land

use exploration and increasing population.
Delinking waste generation
European experience

4.

from

economic

growth

Common property nature of resource is responsible for the

damages imposed on them.

Restoration of private property ownership

will serve as an incentive for presentation and conservation of resources.

-

According to Nitin Desai, Under Secretary General, for

Economic and Social Development to the United Nations (UN)
When we speak of decoupling, we cannot, continue to live
in a world, where there is a double order of magnitude between
the richest and poorest.

The continued divided between haves and have not is perhaps,

the greatest obstacle to Sustainable Development.

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Thus the Sustainable economic growth (leading to decoupling
or dilinking environmental degradation from economic
growth) of a country depends not only on the economic goals,
but also on the social and environmental goals, policies and
strategies. Natural living is the solution (Natural living is the
sustainable living) is for the modern problems especially for the
economy in the globalised scenario.
Nature as an economic externality
-

An Ecosystem services are generally treated as economic

externalities. They are unpriced and therefore over used and
degraded.

In economics an externality is the cost or benefit that affects a

party who do not choose to incur that cost or benefit.
For example : Fresh Air, water (owned publicly and no one claim
private ownership)

British economist, A.C. Pigon, was instrumental in developing

the theory externalities.

Negative externalities Definition

The theory examines cases when some of the costs or benefits of
activities spill over on to third parties. When it is a cost that is
imposed on third parties, it is called a negative externality. When
third parties benefit from an activity in which they are not directly

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involved, the benefit is called a positive externality. So negative
externalities occur, when the consumption or production of good
causes a harmful effect to a third party.
Example of negative externalities :
1. If you play loud music at night your neighbour may not be able to
sleep suffering of the Neighbour is a negative externality.
2. If you produce chemical and cause pollution as a side effect, then
local fishermen may not be able to catch fish. This loss of income
will be the negative externality.
3. If you drive a car, it creates air pollution and contributes to
congestion. There are both external cost imposed on other people
who live in the city.
4. If you build a new road, the external cost is the loss of a beautiful
landscape, which people, can longer enjoy
Social cost : with a negative externality the social cost > private
cost

Pollution is a typical case of negative externality

Pigou recommended taxing activities that produce negative

externalities. Emission taxes, on factories are an example of
this approach.

Another common policy adopted has been to regulate the

amount

activity

legally

permitted.

Laws

that

forbid

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loudspeakers, after a particular time at night illustrate this
solution.

Qn: What is externality ? How do you manage on externality?

POSITIVE EXTERNALITIES
Definition: Positive externalities will arise, when some of the benefits
of an activity are rapid by those not directly involved.
-

This occurs when the consumption or production of a good

causes a benefit to third party. For example
(1) A farmer who grows apple trees, provide a benefit to a Bee
keeper. The bee keeper gets a good source of nectar to help
make more money.
(2) If you walk to work, it will reduce congestion and pollution,
benefiting every else.
Social Benefit: With positive externalities the benefit to the
society is greater than your personal benefit. Therefore with
a positive externality, the social benefit>private benefit.
Remember social benefit = private benefit+ external
benefit

A typical example would be improving the appearance of ones

property. If I paint my house, not only do I benefit, but so do
all my neighbours, who now have a nice view.

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-

Primary education often said to have positive externalities

such as producing informed citizens is mandatory (as well as
subsidized) in most countries.

Summary of Points
1. Uncontrolled economic growth is unsustainable on a finite.
2. Govt. should recognize the serious limitations of GDP as a measure
of economic growth.
3. To see that a measure of wealth integrates economic, social and
environmental dimensions.
4. To take appropriate action against the failure of the economic
system to internalize externalities because the failure of the
economic

system

to

internalize

externalities

leads

to

the

continuation of environmentally damaging activities.

5. If the externalities are uncorrected, then markets fail, they

generate prices that do not reflect the true cost to society of our
economic activities.

6. Emissions of green house gases represent a market failure the

damages caused by emissions, from the burning of fossil fuels are
not reflected in prices. The price of fossil fuels should reflect the
true cost of society, resulting in a more level playing field for
environmentally

sound

renewable

energy

technologies

and

stimulus to consume energy. There are a range of economic

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instruments for correcting the emissions, market failure, from
taxes and emissions trading schemes, to standards and other
regulations.
7. Recognising the importance of ecosystem services would allow the
world to a more sustainable future, in which the benefits of
ecosystem

services

are

better

realized

and

more

equitably

distributed.
Qn: What is the Tragedy of Commons. Explain it influences the
efficient utilization of Resources.
Tragedy of commons as it is commonly called causes, biodiversity
loss and loss of natural resources. Destruction of Natural resources
and the over use and over exploitation are the results.
Commons refers to the Environmental Asset itself, common
property resources or Common pool resources
Open access implies there is no ownership of the asset in the
sense, that everybodys property is nobodys property.
Right from the olden days, the natural resources like air, water
have been owned publicly and no one can claim private
ownership.
When the resources are overexploited and misused as the
individuals are provided with little or no cost. The individuals who
exploit the resources reap full benefits, but bear only the fraction

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of the damage cost of his pollution. Thus if there is no legal
operation, every individual will ignore the drastic effects of his
pollution on the Environmental quality of Atmosphere.
This will lead to deterioration of the air quality and society
may end up worse off. A kind of perverse social situation is
continued, which has come to be known as the tragedy of
commons.
This expression tragedy of commons was propounded by
Prof. Garnet Hardin, in describing environmental problems in
1968. Originally the commons referred to areas of pasture lands in
England that were provided free to all of who wished to graze
cattle. Whenever a resource is open to all it will be over exploited by
competing groups leading to tragedy of destroying the natural
resources. The Environment is modern equivalent of the commons.
It is a commonly held resource which cannot be reduced to a
private ownership. When services of these

commonly used

resources are provided to zero prize, there are no restrictions, it

will be over used and exploited which will ultimately leads to
quality degradation.
ECONOMIC OPPORTUNITY
The growth that depletes ecosystem services is sometimes
termed Economic Growth as it leads to a decline in quality of life.
Minimising such growth can opportunity to local business. It is an
economic opportunity (part of economic dimension). For example

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industrial waste can be considered as an economic base. An ides
of sustainability has emerged as a business opportunity or
Economic opportunity (ie, sustainability as a business or economic
opportunity). The idea of sustainability as a business opportunity
or

economic

opportunity

led

to

the

formations

of

many

organizations. Green business initiatives can emerge out as

economic opportunities.
The Brandt land Commission our common future,
described sustainable development as development that meets
the needs of the present without compromising the ability of
future generations to meet their own needs. This desire to grow
without damaging future generations prospects it becoming more
and more to business philosophies (ie, sustainability as a business
strategy, strategy for corporate sustainability, etc).
The Brandt land Commission (1987) WCED report has
firmly established sustainability as the basis for integrative
approach to economic policy in the coming decades (and hence
economic opportunity).
So

sustainability

opportunity),

increase

can

increase

employee

revenue

productivity,

expenses, reduce materials and water expenses.

Social Cultural Dimension
1.

Peace, security and social justice

(Economic

reduce

waste

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2.

Poverty

3.

Human relation to nature

4.

Human settlements

Definition of socio-cultural environment ?

A set of beliefs, culture, practices and behaviour that exist with
population.
-

The sustainable economic growth of a county depends not only

on the economic goals but also on the social, environmental
goals, policies and strategies.

That is achieving greater physical comforts is not the end of

everything. The wealthy people in the world are neither the
healthy people nor the happy people.

The growth of wealth may take us from necessities through

comforts and conveniences, this is the path way to greed, which
may lead to environmental degradation. This trend keeps the
society decline normally, ethically, spiritually and ultimately
socially.

Social

disintegration

leads

to

environmental

deterioration .
-

The socio-cultural dimensions of the general Environmental

Management represents the demographic characteristics as
well as the norms, customs, life styles and values of the
general population.

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-

The social cultural dimensions is concerned with the societys

attitude and cultural values. It is especially important became
to determines goods, services and standards that society is
likely to values.

The

critical

elements

of

socio-cultural

environment

are

knowledge, language, aesthetics, educative, attitudes, values,

beliefs,

material

culture,

technology,

social

groups

and

organization, business custom practices, etc.

(i)

Peace, Security, Social justice

Social disruptions like crime and corruption clivert resources

from the

areas of human need, damage the capacity of

societies, to plan for the futures and generally threats human

well-being and the Environment.

Broad based strategies to more sustainable social systems,

include improved education and the political empowerment
of women especially in developing counties, great regard for
social justice, notably, equity between rich and poor both
within and between counties and intergenerational equity.
Depletion of Natural resources, including fresh water increases
the likelihood of resource wars. This aspect of sustainability
has been referred to as environmental security, and creates a
clear need for global environmental agreements to manage
resources such as aquifer and rivers which span political

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boundaries and protect shared global system, including oceans
and the atmosphere.
Poverty
A major hurdle to achieve sustainability is the alleviation of poverty
and poverty is one of the sources of environmental degradation (Brundt
land commission report). Reducing poverty and fostering human
development are fundamental requisites for achieving sustainable
development.
-

Individuals living poverty hence growing enquity tend to rely on

their local ecosystem, as a source for basic needs (such as
nutrition and medicine) and general well being.

Concerns and issues related to environment are linked inextricably

to economic issues, such as poverty.

Poverty has been shown to drive the people to greater social

conflicts and to indulge in destructive activities like felling of trees
and other natural resources.

The word Sustainability is also used widely by Western country

development agencies and international charitable to focus their
poverty and alleviation efforts, in ways that can be sustained by
locus populous and its environment.

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-

An effective strategy for taking this problems of environment,

development and poverty is to begin with the economic conditions
of people, their resources and productivity.

While managing environment and resources, due consideration

has to be given, to the fact, that poor people directly depend in
natural for their.

It is globally accepted, that the most effective action for reducing

poverty and fostering human development are, those, that
integrate the sustainable development of economic system
services,

the

promotion

of

economic

development

and

ensuring social equity with a single comprehensive frame work

(ie, poverty reduction through Integrating Environment into the
Development process).
-

Poverty eradication and environment management should go handon-hand. This is one of the social dimensions of Environmental
Management.

Ethical and moral Dimension of Sustainable Environment

Management
-

It is the ethical, moral status, moral relations of man to his

mother earth (planet).

Farmers or non-industries with ethical and moral dimensions

will not destroy or use burn techniques to destroy forest

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wetland for developmental programmes even if they are
essential or inevitable for their livelihood or existence.
-

Companies with strong moral obligation/ethical obligation (or

dimensions) will put all efforts to retain the surface ecology or
restore the land form.

Even if the company (having ethical and moral dimensions) tries

to restore the land form and surface geology (ie, humanly
restored environment) they wont by satisfied mentally. They
value the original natural environment better (or they have in
their mind) than the Humanly restored environment).