Dilemma between pursuing high economic growth and escalating pollution due to industrialization

Benefits of pursuing high economic growth:

-Improvements in living standards: Growth is an important avenue through which per capita incomes can rise and absolute poverty can be reduced

-More jobs: Growth creates new jobs as there will be more factories and offices etc

-Potential environmental benefits – as countries grow richer, they have more resources available to invest in cleaner technologies. And, as nations develop, energy intensity levels fall.

Causes of escalating pollution

-Fast growth can create negative externalities for example more noise pollution and lower air quality arising from air pollution and road congestion

-Increased consumption of de-merit goods which damage social welfare, result in the huge increase in household and industrial waste.

These externalities reduce social welfare and can lead to market failure.

Pollution may lead to many health effects, such as respiratory problems.

Thus, even though there are benefits of pursuing a high economic growth which may not last long, there will be a long term effect, pollution, caused by it.

Alyssa Chua (1)