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WESTERN GHATS – FROM

ECOLOGY TO ECONOMICS


ii

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iii

WESTERN GHATS

FROM ECOLOGY TO ECONOMICS

SHANAVAS P H

SUMESH A K & HARIS P M

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


iv


v

The book is dedicated to Ajmal Roshan and

his special friends of K E Safiya Autism

Centre Kidaran Kunnu, Mahe…


vi


vii

About The Authors

S.no. Authors

1 K. Sahadevan

Freelance Writer & Columnist, [email protected]

2 T.P Kunhikannan

Visiting Professor, Thunjath Ezhuthachan Malayalam University, Tirur,

Kerala.

[email protected]

3 Shibu K J

Assistant Professor of English, Govt. College Balussery,

[email protected]

4 A. Latha

Director, River Research Centre, Ollur.P.O. Thrissur.

[email protected]

5 MA Mohammed Aslam

Associate Professor, Department of Geology, Central University of

Karnataka, Email: [email protected]

6 P. K. Prasadan

Associate Professor, Research Department of Zoology , Mary Matha Arts &

Science College,Mananthavady, Wayanad, [email protected]

7 K. M. Khaleel

Principal, Sir Syed Colege, Thaliparamba, [email protected]

8 Smitha.K.P

Senior Scientist (Agri), Community Agrobiodiversity Centre,

M.S.Swaminathan Research Foundation, Wayanad, [email protected]

9 Lini K. Mathew

Assistant Professor, P G & Research Department of Botany, Mar Thoma

College, Tiruvalla – 689103

10 Jacob Thomas

Assistant Professor, P G & Research Department of Botany, Mar Thoma

College, Tiruvalla – 689103 *Email: [email protected]

11 N. Karunakaran,

Assistant Professor, P G Department of Economics, EKNM Government

College Elerithattu, Kasaragod, E mail: [email protected]


viii

12 K.P Vipin Chandran


College Elerithattu, Kasaragod, Email: [email protected]

13 Sandhya P,


College Elerithattu, Kasaragod, Email: [email protected]

14

Biju Chacko

Assistant Professor, Department of Animal Nutrition, College of Veterinary

and Animal Sciences, Mannuthy

15 Syam Mohan. K. M

Associate Professor, Department of Animal Nutrition, College of Veterinary

and Animal Sciences, Mannuthy

16 Rojan, P.M

Assistant Professor (on deputation), Centre of Advanced Studies in Animal

Genetics and Breeding, College of Veterinary and Animal Sciences,

Mannuthy

17 Ajith M. K

Animal Nutritionist, Kerala Feeds Ltd., Kalletumkara, Irinjalakuda

18 Govinda Prasad P K

Research Associate, Department of Economics, Gandhi gram Rural Institute-

DU, email: [email protected]

19 K Manikandan

Assistant Professor, Department of Economics, Gandhi gram Rural Institute-

DU, email: [email protected]

20 Nithya K

Assistant Professor, Department of Economics, Payannur College Email:

[email protected]

21 Anil Varma R

Assistant Professor, Department of Economics, Zamorin’s Guruvayurappan

College

Calicut-14. Email: [email protected]

22 Sheeba K A

Assistant Professor, P G Dept.of History, CKGM Government College

Perambra, Email: [email protected]

23 Jomon Mathew

Assistant Professor, P G Department of Economics, University College

Trivandrum, Kerala

24 Santhosh R

Assistant Professor, P G Department of Economics, University College

Trivandrum, Kerala


mailto:[email protected]




ix

25

Reshmi Rajan,

Research Scholar, IRISH, Kannur University

26

Divya.H

Assistant Professor, P G Department of Economics, S.N .College, Kannur

Email: [email protected]

27 Ambili S

Guest Lecturer, Dept of Economics, Mercy College, Palakkad


x


xi

Contents

S.no. Topics Page

1 Introduction

Shanavas. P.H.

1

2 Environmental Economics – Theory and Practice

K Sahadevan

9

3 Western Ghats Ecological Expert Panel Report- An Appraisal With

Respect to Kerala’s Development Experience

T. P. Kunhikannan and Shibu K J

18

4 Before Our Western Ghats Rivers Run Dry

A Latha

27

5 Effect of Quarrying on Environment: A Case Study of Ambalavayal

Quarry, Wyanadu, Kerala Using Geospatial Tools

MA Mohammed Aslam,

40

6 Values of Species – Putting A Price on Biodiversity

P K Prasadan

46

7 Western Ghats- A Hotspot of Biodiversity

K. M. Khaleel

54

8 Fungi and Forests-Importance of Tropical Rainforests in Western

Ghats

Liny .K. Mathew and Jacob Thomas

60

9 Sustainable Agriculture Development in the Context of Changing

Socio-Economic-Ecological Milieu Of Wayanad District

Smitha.K.P

69

10

Agricultural Transformation Vs Sustainability:A Kerala Scenario

N. Karunakaran

80


xii

11 Policy Concerns on Agrarian Distress in Wayanad: a close scrutiny

K.P. Vipin chandran and Sandhya P

91

12 Progress and Relevance of Western Ghats Development Programme

(WGDP) in Kerala

Jomon Mathew and R. Santhosh

107

13 Feasibility of Complete Feed for Cows – A Case of Sustainable

Agricultural Practice in the Western Ghats

Biju Chacko, Syam Mohan. K. M., Rojan, P.M. and Ajith M. K

116

14 Land Use Dynamics and Food Security in Kerala

Govindaprasad.P.K and K.Manikandan

131

15 Migration and the Land Use in Kerala’s Western Ghats region: A

Case Study of Three Panchayats of Kasaragod and Kannur district.

Nithya K and Anil Varma R

140

16 Enquiring the History of Agricultural Experiments and Landuse

Pattern in Wayanad District

Sheeba. K. A

153

17 Gadgil- Kasthurirangan Reports- A Juxtapose

Reshmi Rajan

162

18 Protection of Forest Resources –A Study In Palakkad District

Divya H & Ambili S

169

- Index 174


xiii

Tables

S.no. Topics Page

4.1 Important Rivers in Kerala in terms of Length and Catchment Area 29

10.1 Transformation of agriculture in Kerala (Rank of each crop in the

Total Cropped Area)

82

10.2 Transformation in the cultivation of rice, coconut and rubber in

Kerala (in %) (2013-14 over 1960-61)

83

10.3 Average Groundwater level in different crop growing areas of

Kasaragod District (in meters)

86

10.4 Total Factor Productivity Growth (TFPG) in Kerala and in

Districts.

87

11.1 Farmer suicide annual averages in select states: 1995-02 and 2003-

10

96

12.1 Fund allocation under various five plans for WGDP with objectives 110

13.1 Ingredient composition of the four rations in early lactation 120

13.2 Ingredient composition of the four rations in mid lactation 121

13.3 Total milk yield (per animal, kg) of the animals of the animals fed

on the four experimental rations

122

13.4 Average daily milk yield (per animal, kg) of the animals of the

animals fed on the four experimental rations

122

13.5 Average income (per animal per day, Rs.) generated from the sale

of milk from the animals fed on the four experimental rations (@

Rs.40 / kg)

123

13.6 Average Cost of feed (per animal per day, Rs.) given to the animals

in the four experimental rations

124


xiv

13.7 Average cost per kg milk production (per animal, Rs.) of the

animals in the four experimental rations

125

13.8 Average Profit (per animal / day, Rs) generated from the animals

fed on the four experimental rations

125

13.9 Days to first post-partum heat and conception rate of the animals in

the four experimental groups

126

13.10 pH of the rumen liquor of the animals in the four experimental

groups

127

14.1 Land use dynamics in Kerala (Area in ha.) 133

14.2 Area under food crops (in hectares) 135

14.3 Trend in Production of principal food crops in Kerala 136

14.4 Trends in the food price 137

15.1 Land Use Pattern in Kerala (area figures in percentage) 147

15.2 Area Production and Productivity of principal crops of Kerala. 149

16.1 Coffee Plantation in Wayanad in February 1857

155

16.2 The area of tea plantation in Wayanad 157

16.3 The area of tea plantation in Wayanad 157

16.4 Details of Banana Cultivation in Wayanad

158

16.5 Classification of Land 159

16,6 Changed Land Utilization Details of Wayanad 159

16.7 Details of Pepper cultivation in Wayanad 160

17.1 Zonal Recommendations of WGEEP(Gadgil) Report 165


xv

THE EDITORS

SHANAVAS P H

Head of the Department, Department of

Development Economics, Government College

Mananthavady, Nalloornadu P O, Wayanad-

670645, [email protected]

SUMESH A K

Assistant Professor, Department of Development

Economics, Government College Mananthavady,

Nalloornadu P O, Wayanad-670645.

[email protected]

HARIS P M

Assistant Professor, Department of Development

Economics, Government College Mananthavady,

Nalloornadu P O, Wayanad-670645,

[email protected]


xvi


Introduction

1

Introduction _______________________________________________________________________

The hill chain of Western Ghats, a treasure trove of biodiversity and the water tower of

peninsular India, runs parallel to the west coast of India from the river Tapi in the north

and Kanyakumari in the south. The windward slopes of Western Ghats receive heavy

rainfall with varying degrees, resulting in a natural cover of tropical evergreen forests

containing rich biodiversity. Mountain stunted evergreen forests (Sholas), tropical moist

and dry deciduous forests, fresh water lakes and rivers, grasslands lateritic plateaus, dry

thorn forests etc. are the critical habitats for large varieties of species. It is recognized as

one of the 34 biological hotspots of the world and one among the eight hottest hotspots of

the world.

However open access to these resources and failures of the market system in

restricting their uses, has resulted in their overuse and environmental degradation. The

degradation of these places will affect the greater objectives of sustainability in the

future. In addition, the market failure is associated with the users not paying the full cost

of using natural resources. This may lead to excessive use, overcrowding and biological

degradation. The high human population density and major transformation of the

landscape since the mid-18th century has also emphasized the urgency of conservation of

the Ghats and sustainable use of its resources. A study in the Southern region, comprising

the states of Karnataka, Kerala and Tamil Nadu, showed that between 1920 and 1990

about 40% of the original vegetation cover was lost or converted to another form of land

use (Menon and Bawa 1997).

The high level of usage may result in the conflict between users, the social and

biological carrying capacity limits of acceptable change and potential environmental

degradation. Conflicts between economic uses and conservation needs arise when nature

based industries rely on access and use of resources in the protected areas. Beyond

certain level, human contact with the natural environment and resources may pose danger

to the mere existence of these fragile zones. The growing role of well-capitalised

agricultural enterprises in driving deforestation in the tropics could weaken the

historically negative relation between population densities and net forest cover.

1


Shanavas. P.H.

2

Last few years have been witnessing a tremendous number of activities in the

name of Western Ghats, in Kerala the epicenters of this debate is Wayanad and Idukki

districts which are known to the world for typical topographical features are unraveling

the scenic beauty of nature. Some recent developments include controversy regarding the

implementation of Gadgil committee reports, severe agitations from the farmers, the

alarming situation of man-wild conflicts and increased influx of the left wing extremism

among the tribals. The report of the Western Ghats Ecology Expert Panel (WGEEP)

headed by Madhav Gadgil has generated much heat and dust in Kerala, with

environmental activists and pro-development experts adopting diametrically opposing

views. The problem of human-animal conflict is increasingly featuring in the media and

in discussions. The combined effects of high elephant density and major landscape

changes due to the expansion of coffee cultivation have resulted in an increase in the

intensity of human – elephant conflicts in the district. The farmers started to complain

that none of the commonly used methods such as torch lights and bursting fire crackers

work anymore. The farmers are on the receiving edge that even the tigers have started

preying on their buffaloes more often, a phenomenon uncommon in the past.

Managing human - wildlife conflict is one of the greatest challenges for

conservation agencies in India. Human - Wildlife conflict is fast becoming a serious

threat to the survival of many endangered species in the world. Dense human populations

in close vicinity to nature reserves seem to pose the greatest challenges today. Conflicts

become more intense where livestock holdings and agriculture are an important part of

rural livelihood. Competition between rural communities and wild animals over

natural resources is more intense in Western Ghats region where local human

populations tend to suffer higher costs.

Sustainable development of the natural ecosystems and what contribute to their

sustainability are the most pertinent question the world is debating today. Sustainable

development in the context of coexistence of man and environment implies that the

activities which do not jeopardize the long term stability of the ecological systems or the

survival of the flora and fauna with their diversity. To ensure sustainable development,

the management approach must take into consideration of the ecological, economic,

social and cultural parameters.

Hence the need of the hour is to assess the ecological and economical importance

of Western Ghats and to evaluate how a change in the total environment affects millions

of tribal and indigenous people living in and around the Ghats. This edited work tries to

identify the role of Western Ghats in supporting agriculture and allied activities, natural

resource based industries, etc. Also a critical examination of the policies followed by the

state and central governments to identify the lacunas for the implementation of measures

aimed at the overall improvement of Ghats region have been made. The debate over the


Introduction

3

reports of Gadgil and Kasturirangan Committees are examined in the light of growing

concerns of local communities.

Depletion of the natural resource base of the Western Ghats is one of the greatest

threats to the sustainable development of this region. Issues of mining and quarrying in

Western Ghats and their impact on the total ecosystem of the entire peninsular India have

emerged as a hot topic among all stakeholders in recent years. We have tried our level

best to incorporate those topics with due importance given to local specific problems. The

present policy of development by exclusion and conservation by exclusion will be

examined in the light of the plight of tribal and indigenous population. Also the book

suggests how to build a policy which hails the greater principle of development by

inclusion and conservation by inclusions by involving the local needs and aspirations.

Plan of the Book

The book starts with this introductory chapter followed by an article by K. Sahadevan,

“Environmental Economics – Theory and Practice,” which gives an understanding about

the concepts underlying environmental and ecological economic theory. His paper argues

that an economy forms a subsystem of the greater biosphere which is finite, non-growing,

closed and constrained by the laws of thermodynamics. There is nothing new except

sunlight enters into the earth. He challenged the views of conventional economist’s

development approach, and provides evidence for the inevitable decay of Economic

system. Continued growth of the physical economy in a finite and non-growing

ecosystem will eventually lead to the “full - world economy” in which the welfare from

economic services increases while the welfare from ecological services diminishes. The

paper argues that only Steady-state Economic system can solve both ecological and

economical constraints though as it identifies economic system as a subsystem of a finite,

non-growing biosphere rather than viewing itself as a self-sufficient whole entity.

Western Ghats Ecological Expert Panel Report has evoked a lot of apprehensions

in the minds of the residents of the Western Ghats region. An article by T. P.

Kunhikannan explores the reasons for the controversy erupted in Kerala in connection

with the aforesaid report. He argued that the concerns of the residents of this region are

multifaceted viz. political, communal and technical. The communal and political interest

groups hijacked the real concerns of the people living in these areas. Consequently there

arose a strong resistance against the implementation of the Expert Panel Report on

Western Ghats. His paper tries to bring forth the recommendations of Gadgil Report and

to examine them in comparison with Kasthurirangan Report. The paper reemphasis the

importance of bringing a social control over the use of land and states that the Gadgil

Report was the right step in this regard.


Shanavas. P.H.

4

In her article, “Before our Western Ghats Rivers run Dry” A. Latha, highlighted

the need for conserving the rivers from further deterioration. Her paper listed that the six

important problems faced by the rivers today are deforestation of catchments, dams and

diversions, sand mining, pollution, land use changes and encroachment. The present river

basin management approach is highly techno – bureaucratic, lacks understanding of the

relation between interventions in the river catchment on the flows and does not account

for the ecological limits to the hydrological potential of the river basin. The article gives

some important components of a river revival and management plan which are; restoring

environmental flows, development of panchayath level water resources management

plans, eco restoration of catchments, regulation of sand mining etc.

Mining in Western Ghats poses serious threats to the environment and

comfortable living. Quarrying includes the mining activities, which includes the

extraction of rocks and explores raw products from the earth’s crust. Chapter 5 of the

book is mainly aimed at measuring the impact of mining through geospatial tools. M. A.

Mohammed Aslam conducted a study on the mining activity around a major quarry

located near Ambalavayal village, Wayanad district, Kerala using geospatial techniques.

His article highlights the importance of Geospatial tools for understanding the dangers of

intensive mining and quarrying activities.

Human existence is inextricably linked to bio-diversity. Every species provide

some critical values which are either directly or indirectly benefits human beings. Many

species of animals and plants have medicinal value, certain other set of species can meet

our emotional needs that drive our search for pleasure and hence they have recreational

value. Yet another set of species has spiritual value and scientific and educational value.

Some species play critical ecological roles that are of greater importance than we would

predict from their abundance. An article by P. K. Prasadan reminds us that many species

are at great risks and therefore we have a lot to lose in terms of their intrinsic value. The

paper emphasizes the importance of putting a value to the biodiversity. This can only be

possible by shifting our approach from being anthropocentric to being bio centric.

The great topographic heterogeneity and a strong rainfall gradient were

considered to be the two greatest reasons for the rich biodiversity and a unique forest

ecosystem that Western Ghats possess. The discussion on the Biodiversity is extended by

K. M. Khaleel in his paper titled “Western Ghats - A Hotspot of Biodiversity”. With the

use of different studies, the paper tried to assert the importance of Western Ghats with its

exceptional levels of plant and animal diversity. The distribution and magnitude of the

biodiversity that exists today is a product of over 3.5 billion years of evolution, involving

speciation, migration, extinction and more recently, human influence. This is emphasized

on the diversity of plant life as an essential underpinning of most of the tropical

ecosystem. The adverse effects of human impacts on the environment are increasing

dramatically and threatening the very foundation of sustainable development.


Introduction

5

Lini K. Mathew and Jacob Thomas in their “Fungi and Forests” assess the

importance of Fungi in forest ecosystems. Biodiversity of fungi is very important for

anyone who are collecting, studying and monitoring the different fungi. Fungi are

fascinating, beautiful and are vital components of nearly all ecosystems and they can

make impacts on human health and our economy in a myriad of ways. Even today, the

standardized methods for documenting the diversity and distribution of fungi have been

lacking. The paper throws some insights on the diversity and ecological significance of

fungi, and the uses of it as an incredible and fundamental resource for the study of

organismal biodiversity.

The article “Sustainable Agriculture Development in the Context of Changing

Socio-economic-ecological milieu of Wayanad district” has examined the gradual

transformation in agriculture during the past fifty to sixty years and how it affects the

sustainability of the paddy lands in Wayanad. Smitha K. P. points out that the sustenance

of increased agricultural production over a long period of time without further

jeopardizing the environment is the greatest challenge that the developing economies all

over the world is facing. Price fluctuations of cash crops, crop raiding by wild animals,

climate variations resulting in crop failures, increased incidence of pests and diseases,

depletion of soil fertility due to over and intensive use of chemical fertilizers resulting in

lower productivity, excessive use of chemical pesticides contaminating the environment

and resulting in pest resurgence, degrading water resource base, land conversions and

unscientific land use, loss of agro biodiversity, labour scarcity due to agricultural labour

migration are the major factors that are pulling out younger generation from farming.

N. Karunakaran provides a detailed picture of agricultural transformation in

Kerala during the last five decades and the way it contributes to imbalance in the

cropping system and thus create serious economic and environmental consequences on

the farm sector and the sustainability of the agrarian economy. Agricultural

transformation and the consequent application of chemical fertilisers and pesticides

heavily result in the depletion of inherent macronutrients, plant nutrients and

micronutrients of the soil. There is wide concern on the deterioration of surface and

groundwater quantity and quality. The article examines, the sustainability of the crop

sector and the agrarian economy of Kerala are based on three grounds; decline in soil

fertility status, decrease in the groundwater level and decline in total factor productivity

growth; revealed that there is decrease in the soil fertility status, average groundwater

level and total factor productivity growth of the crop sector in Kerala.

Agrarian distress and farmers’ suicide in India in general and Wayanad district is

more particular in the subject matter of the chapter contributed by K. P. Vipin Chnadran

and Sandya P. The paper goes into detail behind the state of crisis faced by cash crop

based agriculture of Kerala. Cash crop prices are highly volatile, and often dictated by

powerful corporations at the global level. This makes Kerala more vulnerable to price


Shanavas. P.H.

6

shocks than any other State in India. This crisis has manifested itself in increasing

poverty, falling prices of primary products, mounting debts and also in suicide of farmers,

which is the result of the marginalization of agrarian economy since the economic

reforms of the 1990s. In Kerala the epicenter of the agrarian distress and farmer suicide is

Wayanad. In the year 2006, Wayanad was one of the thirty-one districts identified by the

Government of India as prone to agriculture-related suicides and has received a

rehabilitation package involving short-term and long-term measures. The paper also

made a close scrutiny of policy concerns on agrarian distress in Wayanad.

The development and conservation activities in Western Ghats should be the

prime agenda for the concerned governments. This will help in the conservation of

natural resources. But Western Ghats in general facing may many. To abate the

environmental externalities associated with the exploitation of natural resources, the

Western Ghats Development Programme, a multi-sectoral centrally sponsored

programme was introduced at the National level in 1974-75 to cover an extent of 160

lakh hectares in the Western Ghats region spread over the States of Maharashtra, Goa,

Karnataka, Kerala and Tamil Nadu. Even after expending a huge sum, little progress has

been achieved due to faulty planning and implementation. The paper authored by Jomon

Mathew and R.Santhosh examines the WGDP in detail and list out important suggestions

for the effective implementation and success of the programme in future.

Biju Chacko et al have done a good deal of research for exploring ways of feeding

cows in the form of a complete diet which could be substituted fodder to an extent. The

pasturelands of Western Ghats are fading out rapidly and thus created problems for

marginal cattle growers. Decline in paddy cultivation has added fuel to the fire. Many of

the farmers already left out of cattle rearing due to shortage of fodder. A study of six

months duration was conducted in lactating dairy cows at the University Livestock Farm

and Fodder Research and Development Scheme, Mannuthy of the Kerala Veterinary and

Animal Sciences University, to assess the effect of complete feeds having different levels

of NDF, by comparing with the conventional grass-concentrate based feeding system on

the basis of production performance and economics. The results are summarized in the

paper. The study concludes that complete feeds with NDF levels ranging from 25 to 35

per cent can be recommended for use among the dairy cows of Kerala.

A change in land use pattern has serious implications on the area, production and

productivity of major food crops which in turn would have an adverse impact on the food

security of the state. The shrinkage of farmland and resulting food insufficiency and food

price rise has significant impact on food security and sustainable livelihood of Kerala. A

study by Govindaprasad P. K. and K. Manikandan analyses the land use dynamics in

Kerala and its impact on area, production and prices of food items in Kerala. Their study

also analyses the impact of land use dynamics and shrinkage of farmland on food

security. The study found that one hectare increase in land under non-agricultural sector


Introduction

7

is at the cost of 0.84 hectare reduction in the agricultural sector in Kerala. As a result of

the conversion of agricultural land to non-agricultural purposes the area under cultivation

of most of the food crops reduced during the period. The decline is drastic in terms of

area under cultivation of food grains. This has adversely affected the food security of

marginalized sections of Kerala.

Over the years, the ghats region experienced various episodes of migration. The

fertile forest lands of the region were brought under extensive and intensive cultivation

through a migratory process. This established a commercially oriented agrarian economy

in this geographic segment, by exploiting and marginalizing the original inhabitants and

their indigenous knowledge systems in the region. A paper by Nithya K. and Anil Varma

R. explores the dynamics of episodic migration to north western parts of Kerala and

analyzes the preset land use pattern of the Western Ghats region of Kerala in a historical

perspective. Their paper examines the impacts of commercialization of agriculture and

how price fluctuations compelled the farmers to experiment with various short term

commercial crops simultaneously.

There is a close relationship between the land use pattern and choices of

cultivation in an area. The selection of crops and method of cultivation were the

determining factor to fix the history of a region. The history of Wayanad is closely

related to the history of agricultural experiments of the land. The character and culture of

a group of people who are living in a particular territory is highly determined by the

geography and occupation of that territory. Sheeba K. A., in her acticle, enquires the

histories of agricultural experiments and land utilization patterns in Wayanad district.

Wayanad can witness different phases of agricultural experiment and it can cause

deforestation in large scale. Soil erosion and climate changes etc, are considered to be the

negative spill overs of the commercialization of agriculture in wayanad.

In her paper “Gadgil - Kasthurirangan Reports on Western Ghats - A Juxtapose,”

Reshmi Rajan has made an attempt to compare the Western Ghats Ecology Expert Panel

headed by Madhav Gadgil and the report made by Kasturirangan committee. These

reports were made to assess the biodiversity and environmental issues of the Western

Ghats and to suggest policy recommendations to the central, state and local self-

governments. But both these reports have generated much heat and dust in Kerala. Based

on the analysis the author concludes that implementation of Kasturirangan report will

provide loopholes for mining, which would be detrimental to the environment and long

term sustainable development goals. Therefore implementing WGEEP recommendation

could ensure an all-round balanced development.


Shanavas. P.H.

8

The importance of forests to a natural ecosystem and its role in providing food as

well as other natural resources has been highlighted by many studies. The paper authored

by Divya H. & Ambili S. has gone in search of the problems faced by the natural forests

in Palakkad district and its impact on the natural ecosystem. Their paper highlighted the

need for an afforestation programme which would be crafted in a way to ensure the

participation of local communities by providing them with sufficient employment

opportunities. This would enhance the opportunities available for local poor and at the

same time create valuable forest assets for the dependent populations.

Shanavas P. H

X


Environmental Economics– Theory And Practice

9

Environmental Economics – Theory

And Practice

_______________________________________________________________________

Abstract

An economy forms a subsystem of the greater biosphere which is finite, nongrowing,

closed and constrained by the laws of thermodynamics. There is nothing new except

sunlight enters into the earth. This means that whatever physical and natural resources

we have is limited and are produced due to geological activities of thousands of years.

The mainstream economists held the view that there is no conflict between economic

growth and environment will not hold good. In their “empty-world vision”, the

environment is not scarce and the opportunity cost of expansion of the economy is

insignificant. In an empty world the economic system is very small as compared to the

ecosystem. Continued growth of the physical economy in a finite and nongrowing

ecosystem will eventually lead to the “full-world economy” in which the welfare from

economic services increases while the welfare from ecological services diminishes.

According to the second law of thermodynamics, the system will be plunged into a state

of entropy. This paper examines the limitations to growth in terms of three fundamental

concepts such as Futility Limit, Ecological Catastrophe Limit and Economic Limit and

critically examines three important strategies namely (1) Economic Imperialism; (2)

Ecological Reductionism; (3) Steady-State Subsystem. The paper argues that only

Steady-State Economic system can solve both ecological and economical constraints as it

identifies the economic system as a subsystem of a finite, non-growing biosphere rather

than viewing itself as a self-sufficient whole entity.

________________________________________________________________________

Keywords: Sustainable development, Environmental Reductionism, Environmental

Imperialism, Steady-state Economics, Empty world, Full world.

2


K Sahadevan

10

Introduction

"There is no conflict between economics and environmental science. Economic growth

can be continually sustained without making harm to the environment and its protection.”

This statement is often articulated by economists as well as those people who are

considered to be the official spokespersons of development. They try to convey their

views and to convince the general public whenever they get a chance during any debate

which involves development and environmental problem. For the time being, we may

feel that the statement is true, but may soon realize that the situation is grave and the

proclamation of this kind did not involve serious discussions about the depth of the crises

and comes out of our ignorance about the problem we are facing now.

What could be the true nature of the idea that “endless economic growth is

possible with environmental protection” that the conventional economic theorists argued

with? The statement is trying to make us to believe that the world is facing vary simple

crises that could be overcome by appropriate, yet simple corrections to the existing

system and thus does not require drastic changes. It is high time to realize that these

statements bear only half-filled truth and may arise out of confusions concerning the level

of understanding about the concepts of aggregate growth and the possibility of recycled

use of resources. The conventional economists treats aggregate growth as the growth

additions to the market value of final goods and services produced in an economy.

An economy forms a subsystem of the greater biosphere in which we live. The

biosphere should be seen as finite, nongrowing, closed (except for the constant input of

solar energy) and constrained by the laws of thermodynamics. There is nothing new

except sunlight enters into the earth. This means that whatever physical and natural

resources we have is limited and are produced due to geological activities of thousands of

years. When the economy’s expansion encroaches too much on its surrounding

ecosystem, it uses more and more energy and matter left over in the biosphere. According

to the second law of thermodynamics, the economy thus encroaches into the realms of the

biosphere and to increase the pressure on matter by shifting them from their natural use to

more artificial ones. Thus the human economic interventions would bring the bio-system

into a state of diminution in which a return would be nearly impossible. So the

mainstream (also known as neoclassical) economists held the view that there is no

conflict between economic growth and environment will not hold good. Relying on

growth in this way might be fine if the global economy existed in a void, but it does not.

Rather the economy is a subsystem of the finite biosphere that supports it. As long as the

goal of continuous growth remains, the conflicts between economy and environment will

be inevitable.

But the facts are plain and incontestable. It is very clear to everyone that the economy is

only a subsystem of the greater bio-system. Any subsystem, such as the


Environmental Economics– Theory And Practice

11

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