Econ Project 1
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- Date Submitted: 04/08/2010 01:26 PM
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Negative Externalities of the Paper-Making Industry
The paper-making industry is an important part of society, for people have become accustomed to the use of paper for daily uses. Unfortunately, along with the production of paper, there are the productions of impacting negative externalities. The principal externality of paper making is the problem of global deforestation, and how the government is able to solve this problem.
A negative externality results when part of the cost of producing a good or service is born by a firm or household other than the producer or purchaser. One of the main negative externalities of the paper-making industry is deforestation. An example is the Asia Pulp & Paper (APP), one of the largest pulp and paper companies in the world. The industry consumes much of Indonesia’s forests, destroying homes for millions of indigenous people and wildlife dependent on the forests. The majority of Indonesia’s forests has degraded, or is considered unsuitable for logging, and only 17 million ha of feasible production forest is left. It has also been recorded by the Indonesia-UK Tropical Forest Management Programme that 73 percent of all APP logging in Indonesia are undocumented, and assumed to be retrieved from illegal sources.
On a broader scale, the great loss of forests and trees contributes to global warming. Trees regulate the Earth’s climate by moderating the greenhouse gases in the atmosphere (an example includes carbon dioxide). Without the trees to stabilize the increase of these gases, the atmosphere will lead to an increase in temperature, climate, and weather change. Clearing the forests also causes erosion, for when there are no trees to keep the soil in place, the nutrients in the soil are washed out. Flooding is also an effect of deforestation. Because of the lack of trees, there is nothing to absorb the extra rainfall. Thereby dramatically increasing the surface run-off from rainfall, and...
The paper-making industry is an important part of society, for people have become accustomed to the use of paper for daily uses. Unfortunately, along with the production of paper, there are the productions of impacting negative externalities. The principal externality of paper making is the problem of global deforestation, and how the government is able to solve this problem.
A negative externality results when part of the cost of producing a good or service is born by a firm or household other than the producer or purchaser. One of the main negative externalities of the paper-making industry is deforestation. An example is the Asia Pulp & Paper (APP), one of the largest pulp and paper companies in the world. The industry consumes much of Indonesia’s forests, destroying homes for millions of indigenous people and wildlife dependent on the forests. The majority of Indonesia’s forests has degraded, or is considered unsuitable for logging, and only 17 million ha of feasible production forest is left. It has also been recorded by the Indonesia-UK Tropical Forest Management Programme that 73 percent of all APP logging in Indonesia are undocumented, and assumed to be retrieved from illegal sources.
On a broader scale, the great loss of forests and trees contributes to global warming. Trees regulate the Earth’s climate by moderating the greenhouse gases in the atmosphere (an example includes carbon dioxide). Without the trees to stabilize the increase of these gases, the atmosphere will lead to an increase in temperature, climate, and weather change. Clearing the forests also causes erosion, for when there are no trees to keep the soil in place, the nutrients in the soil are washed out. Flooding is also an effect of deforestation. Because of the lack of trees, there is nothing to absorb the extra rainfall. Thereby dramatically increasing the surface run-off from rainfall, and...