Determination Of National And Regional Economic Essay

Discuss about the Determination of National and Regional Economic.



The research paper looks at how Gold Ore Mining as a major economic activity in Australia causes pollution to the surrounding environment. The research considers Tasmania in Australia as the main case study and utilizes explanatory research. Ore mining is one of the economic activities in Australia. The activity has negatively impacted on the environment hence causing a lot of pollution. It involves the removal of vegetations and soil covers hence causing the destruction of the natural ecosystem Chapman, 2012). There are about two types of wastes from mining such as the waste rocks from the ore that has been uncovered and the tailing of mines after the ores have been processed. There are different mining impacts that are caused within the environment such as the destruction of physical habitats hence the bio diversity resource is lost. Similarly, the accumulating pollution is also at a high rate of about 70% every day thus posing a huge threat to the eco system(flora and fauna) in the area of australia (Bina, 2011).

There are different types of economic activities in Australia that have caused an increase in pollution. Although these activities are earning income for the nation, they have totally degraded the environmental nature hence causing pollution. However, this paper looks at the Gold ore mining in Australia as the major cause of pollution. The production activity from the ore mining has totally raised the effects of pollution into the environment. Pollution has both health effects on human life and ecology (Willard, 2011). Mining of Gold Ore does not only produce pollution that affects the environment but also air and water. The contamination of both water bodies and air leaves the surrounding environment into a big threat of acquiring diseases. The solid wastes from the ore body have significantly increased environmental pollution (Abdul-Wahab and Marikar, 2011). According to the research, environmental pollution has been a constant concern in most states of Australia. Therefore air pollutants such as carbon monoxide have seriously impacted human health thus causing death. The most affected are the children and the elderly peoples who are in a range of 75 years and above (Abdul-Wahab and Marikar, 2011). The epidemiological reports have reported the relationship between human health and the many pollutants created. Many scholars have reported the strong and positive correlation between carbon monoxide and nitrogen dioxide. Hence scholars report that it becomes difficult to determine the real pollutants that cause air pollution. There has been a persistent concern about the effects of the hazardous wastes on the environment. It is due to the dependence on the regulatory levels of control. There are different types of hazardous wastes such a bio-degradation of the environment and recycling (Field, 2017). .

The research analysis utilized the PM10 which is the pollutant index that helps in quantifying the social, economic and health costs (Willard, 2011). The approach best suits the analysis because of the soundness in the epidemiological studies that show these effects to be continuous.

Table 1.2 shows the health cost of pollution in Australia

Underlying assumptions predicted yearly health costs 2000-2002

Cost as % percentage of GSP

Cost per capita

Cost based Pm10 indicator with threshold of 7.5









Mid point




The analysis shows the level averages of pollution which have accumulated form the year of 1999/2000 to 2001/2002. The analysis shows that the levels of emissions of pollution creating health costs have been estimated to be around $1.0 billion and $8.40 billion annually .During the analysis, costs of health are estimated which assumes there are no thresholds for PM10 (Greer, 2011). The world Health Organization has consistently reported that there are no clear pollution levels in Australia. It indicates that, these levels differ depending on rate of emission by different Gold mining companies.

The tables shows pollution levels in australia

Nature of pollutant






















































The economic efficiency framework shows that pollution has largely affected the market equilibrium since it creates social costs (Illge and Schwarze, 2009). When producers of the products incur much cost due to pollution, prices are likely to be high for consumers. They do so to compensate the costs incurred during production. However, the consumers may react by imposing restrictions on the company responsible for creating pollution. For example, when the producer has rights to the environment, the company responsible form pollution will only produce to that limit put by the producers. Scholars argue that any pollution beyond the set limits will be paid and compensated by the company responsible for pollution. While the other compensates Gold ore mining if the limit is not surpassed (Illge and Schwarze,2009). This entire scenario creates efficiencies in the market since any of them can violate the agreement and sometimes they not come into one agreement. It is believed that the cycle of economic efficiency is always altered when such arguments come in. For instance the Figure 2.1 explains the how pollution affects the economic efficiency.

From the figure above, shows that economic activities that produce pollution have an ffect on both the resources and the economy. Pollution created out of these activities sometimes cause the ineffectiveness in weather conditions (Willard, 2011). Since there would be condensation and changes in the clouds hence forcing the new weather to happen(Janicke,2012). According to research, natural resources like water bodies are also affected which retard the economic performance of the nation (Jacqui, 2012). Social costs in this case become much to be compensated which leaves the polluting company with no choice. Once the economy declines as a result of poor performance and low production, it then results into the inefficiency of the market. This is explained by the right hand of the figure above. While on the other side, effects would then result such as high costs and low production which would mean inefficiency of the economy (Jacqui, 2012).

According to the thermodynamic view, environmental pollution assumes that pollution also contribute to the suffering of fauna as they suffocate due to polluted air The thermodynamic view assumes that all kinds of pollution created is referred to as the symptomatic nature of the earth such as water bodies, land scape and air. It believes that these are then changed into the technology of individuals while using the degraded environment (Spash, 2013). It also argues that from the ouset, environment is also polluted by the fire from forests. Thus it is not only Gold ore mining that creates air pollution but also forest fire pollutes (Willard, 2011). It makes the point clear that these types of pollution created are not any different from the pollution created by the technological sources. Most operations about process of planetaries like formation of the atmosphere and hydrosphere are well explained by the thermodynamic views (M?ller e t al., 2011).

Part of the pollution quantity is always emitted to the environment as engines of heat are yielded by consuming the certain pollution quantities (. That is to say, suppose Q0 is the quantity of pollution supplied, W* is the produced work and finally Q+ is the pollution emitted then we obtain the following equation (Robert and Stavins, 2008).

Q0 = Q+ + W*. Then the market efficiency becomes; W/Q0. Therefore, most scholars indicated the importance of Q+ which important in the second law of thermodynamics. The law states that pollution is not converted completely into work (Robert and Stavins, 2008)..

Most scholars have argued out that ecology science is differentiated from the philosophy of economic dominance However, ecology points out that there is a need for balancing the utilization of resources. Ecological view stresses the use of both economic policies with the energy concepts in pollution abatements to be key in controlling these allocations. It finally argues that best economic policy makers should be used in the cyclic systems to minimize the pollution threats (UNEP, 2012).

According to the Ecological view point, pollution creates changes which are not desirable to the surrounding. It argues that it has harmful impacts and effects on to the human life, vegetation, wild and domestic animals. Such incidences happen when the long term social costs of the ecological benefits for human life are have been made from an ecological gain during the short term. According to the Department of Environment and Conservation (2016), human is largely dependent on the different types of products from waste, hence calls for the pull up of pollution. According to the ecological view, there are different classifications of pollutants such as the non consistent pollutants and the degradable pollutants (Willard, 2011). However, the natural processes such as the discarded vegetable have helped in breaking the non persistent pollutant. It is believed that these types of pollutants are capable of remaining on surface for a long period of time. While on the other hand, the natural process does not degrade the non degradable pollutant. Since it is more difficult to be eradicated once it has fallen into the environment. So, with that, it is believed that these pollutants such as the wastes of nuclear and toxic substances will continue cumulating in the environment (Shmelev, 2012).

Pollution mainly related to gold ore mining is one of the challenges facing the area of Australia. A number of negatives environmental effects have been registered in various due to the increased emission of toxic gases on to the atmosphere, land and water. This has not only increased Government expenditures in addressing challenges caused by pollution but has also limited the overall economic progress of Australia. Government of Australia spends a lot of capital in addressing challenges and diseases caused by pollution like, bronchitis, pneumonia, cancer among others. Various efforts have been undertaken by a number of stakeholders to effectively eliminate pollution effects and causes in Australia . However, The polluting companies on the other hand have constantly polluted the environment which has also made suffocation of living things like animals. From the analysis, it is predicted that if no controls are put across pollution, it is likely that in 2033 pollution rate would be 80% . This is due to the current level of industrialisation progress that is being registered in the entire area of australia (Tausch, 2016). Therefore, there is need to streamline the available legislations and mechanisms to effectively avoid pollution and its disastrous effects in the area of Australia

This is a big threat to the country as they would incur a lot in controlling the diseases that would be created as a result of pollution. Therefore, it is good for the government to come up now and put some restrictions on the polluting companies. The proposal would be setting levels for which the polluting company should exceed. When such limits are put by the government, it becomes hard for the polluting companies to disobey the policy as they would be fined heavily in case they do so (UNEP, 2007). Stringent rules will help in ensuring all companies that exceed the pollution limits are given harsh penalties which may include among others withdrawing there licences, heavy fines and suspensions. Further adoption of new technologies on waste management will aid in the reduction of the amount of wastes realized on land,water and atmosphere. For instance some oil producing companies have effectively reduced the effects of pollution through using modern technologies that limits or reduces the levels of waste products released on the earth surface. Lastly environmental awareness programs and increased corporate social responsibility awareness will help in reducing cases of pollution being registered in Australia.


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