Dr. Yasam Ayafefe presents the economic valuation of damage caused by environmental pollution and offers solutions

Ecological and economic damage refers to the monetary value of changes to the environment resulting from pollution. This includes the deterioration of human health due to air pollution, industrial waste. Mechanical damage is caused by hazardous waste. In addition, this waste enters the air, after which the conditions for living and activity change.

This leads to ecological, economic and social damage. Environmental harm is the pollution of the environment.

The economic valuation of damage includes the following costs:

  1. costs associated with changes to the environment;
  2. the cost of returning to the previous state;
  3. expenditure on non-reimbursable resources.

Air pollution is a serious problem.

The study estimated that air pollution was responsible for 5.5 million deaths.

Air pollution leads to cardiovascular disease. It also affects biodiversity. All of these have economic consequences that affect the decline in the rate of economic growth.

Economic consequences:

  1. affects human health and agriculture – these impacts could worsen in the future.
  2. energy demand will lead to increased air emissions.

The amount of pollution charges depends on the amount of damage. An economic assessment is also carried out for social and moral damage.

There are two types of economic damage assessment: direct assessment and indirect assessment.

The first method is to collect a large amount of information. Next, it is necessary to give an adequate monetary assessment of the losses incurred.

An indirect assessment is considered a simpler method of assessing economic damage. With this method, pollution is assessed by pollutant objects.

in the past, agriculture has always had a positive impact on the territory’s landscape. Today, the intensive development of agriculture has, on the contrary, negatively affected the environment.

The consequences are air and water pollution, which leads to various diseases. ?Energy consumption in European countries continues to grow and depends on fuel types.

Tourism continues to grow today and depends on transport, mainly automobile and air transport, which are harmful to the environment.

Mountains, oceans, seas are favorite vacation spots for tourists and have unfortunately already suffered from pollution.

Transportation plays an important role in the economy, as it is used to transport raw materials. The least dangerous for the environment is rail transport.

Now each country aims to create vehicles that are safe for people’s lives and at the same time environmentally friendly, without gas emissions into the air.

Solution to problems

The Kyoto Protocol is an example of ecological economics: it involves developing the economy of a country with environmental constraints.

Pollution taxes

The state sets standards and taxes. Given the costs of depollution, companies are authorized to pollute up to a certain level. Otherwise, the company pays taxes for the damage.


Here, companies receive a bonus for working without harming the environment.

The goal of ecological economics is the well-being of people, which includes the protection and restoration of nature, social justice.

The economy affects all branches of production, it also affects the environment and ecology. Manufacturing companies are building sewage treatment plants to keep the air and the environment clean.

They organize events and raise funds for the conservation of flora and fauna.

The development of the country’s economy plays both a positive and a negative role.

The positive side is that production is increasing and technology is improving. The state budget increases, which helps the nature protection fund.

The negative side is the increase in the number of people, the pollution of nature and the depletion of resources.

It is necessary to maintain a balance between the development of the economy and the preservation of the purity of the environment.

Dr Ya?am Ayavefe

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