Environmental Protection (Edexcel IGCSE Economics)

Revision Note

Lorraine

Written by: Lorraine

Reviewed by: Steve Vorster

Business Activity and the Environment

  • Governments are doing more and more to set macroeconomic targets based around environmental protection

  • Business activity can create external costs of production when providing a good or service

    • Types of pollution that create external costs to the environment include visual, air, noise and water pollution

Businesses can have a range of negative impacts on the environment, including air, water and noise pollution, traffic congestion and dereliction
Negative business impacts on the environment include visual, noise, air, and water pollution

Ways in Which Business Activity Damages the Environment

Type of Pollution

Explanation

Example

Visual Pollution

  • Business activity can cause a landscape to look like an eyesore

  • It can take the form of litter, mine dumps or the release of chimney smoke

  • Prior to plastic bag ban in Kenya, plastic bags could be seen littering streets, rivers and natural environments

Noise pollution

  • Noise pollution refers to excessive noise that causes stress or hearing loss

  • Noise can come from loud machinery, factories, traffic or even bars and restaurants

  • Noise from air traffic at Heathrow airport from flights arriving and departing. Impacts local residents near airport

Air pollution

  • Greenhouse gases are released into the atmosphere from the burning of fossil fuels, leading to increased air pollution

  • Electricity stations (using fossil fuels), factories, transportation and agricultural activities all cause air pollution

  • Up to two million air pollution deaths are recorded per year in China

  • Beijing and Shanghai rank among the most polluted cities in Asia

  • This has led to health diseases, such as respiratory and cardiovascular illnesses

Water pollution

  • Water pollution refers to the contamination of rivers, lakes, and oceans with harmful substances

  • This can occur because of agriculture, mining, and industrial activities. Pesticides, fertilisers or chemicals end up in water

  • In Ecuador, pesticide use in banana farming has also been linked to water pollution, posing risks to rivers quality

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Lorraine

Author: Lorraine

Expertise: Economics Content Creator

Lorraine brings over 12 years of dedicated teaching experience to the realm of Leaving Cert and IBDP Economics. Having served as the Head of Department in both Dublin and Milan, Lorraine has demonstrated exceptional leadership skills and a commitment to academic excellence. Lorraine has extended her expertise to private tuition, positively impacting students across Ireland. Lorraine stands out for her innovative teaching methods, often incorporating graphic organisers and technology to create dynamic and engaging classroom environments.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.