Question

As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?

Short answer

As the extent of environmental protection expands, we can expect the marginal benefits of these efforts to fall due to the concept of diminishing marginal returns. The initial units of protection contribute to significant improvements, while subsequent units add progressively less value. This occurs because, after a certain point, the additional benefits from increasing the level of environmental protection will become smaller compared to the benefits gained in the initial stages. Nevertheless, continued environmental protection is essential for the sustainability and health of our environment.

Step-by-step solution

Understand the terms

First, let's define the terms used in the exercise: - Extent of environmental protection: The amount or scale of actions taken to protect and preserve the environment. - Marginal benefits: The additional benefits received from each extra unit of environmental protection. It quantifies the change in total benefits as a result of increasing the level of protection by one unit.

Consider the effects of increasing environmental protection

As we increase the extent of environmental protection, we may initially observe some significant positive effects on various aspects of the environment, such as clean air and water, the preservation of biodiversity, soil quality, etc. These improvements usually lead to an increase in the quality of human life, health benefits, and a more sustainable economy.

Analyze Diminishing Marginal Returns

The concept of diminishing marginal returns is crucial to understanding the relationship between the extent of environmental protection and the resulting marginal benefits. In economics, it is a common observation that the marginal benefits of any activity or resource allocation tend to decrease as the amount of that activity/resource increases. This is because the initial units often contribute to the most significant improvements, while the subsequent units add progressively less value.

Estimate the trend of marginal benefits

Based on the concept of diminishing marginal returns, we can expect that as the extent of environmental protection expands, the marginal benefits of these efforts will generally fall. The reason for this is that, after a certain point, the additional benefits from increasing the level of environmental protection will become smaller in comparison to the benefits gained in the initial stages.

Provide an example

For example, suppose there is a polluted river that needs cleaning. The first few rounds of pollution control measures, such as treating sewage and restricting industrial waste disposal, will result in significant water quality improvements and substantial benefits for the local ecosystem and community. However, after the initial cleanup, the benefits of further cleaning efforts will decrease, as the remaining pollution sources will have a lesser impact on water quality and the overall health of the ecosystem. In conclusion, it is reasonable to expect that the marginal benefits of environmental protection will fall as the extent of protection efforts increases, mainly due to the diminishing marginal returns. Nonetheless, it is crucial to recognize the importance of continued environmental protection and the need for a balanced approach to ensure a sustainable and healthy environment for future generations.