ECONOMIC ACTIVITY AND THE ENVIRONMENTAL DEGRADATION: AN INCONGRUOUS DISSONANCE

Abstract

This paper argues that the speed of economic growth or intensity of human economic activity is not merely dependent on the intensity of pollution or environmental degradation. Rather, smart choices and technological advancements have the capacity to decrease environmental degradation while also increasing economic growth concomitantly. In the arbitration of costs and benefits, this US-oriented  study finds that corporate profits of the industries that are most responsible for environmental degradation in the US pale in comparison to the cost of environmental disasters and the accompanying effects of unbalanced income distribution. The results suggest that further investments in smart technology are capable of fostering economic growth and reducing costly environmental disasters. Yet, equity within generations remains elusive and contingent on deliberate policy intervention.