SCHOOL OF BUSINESS AND SOCIAL SCIENCES
BBE1013 MICRO-ECONOMICS
Individual assignment
Final exam equivalent
Case Study- Negative Externalities
PREPARED BY:
Nadia Wahida (AIU19032039)
PREPARED FOR:
Madam Nur Safiyya Chua Chy Ren
SUBMISSION DATE:
15th June 2020
Table of Contents
1.
Introduction ..................................................................................................................................... 2
2.
Causes and Effects .......................................................................................................................... 3
2.1
Determine Causes of the greenhouse effect ............................................................................ 3
2.1.1
Natural greenhouse effect ............................................................................................... 3
2.1.2
Enhanced or Man-made greenhouse effect ..................................................................... 4
2.2
Determine the greenhouse effects ........................................................................................... 5
2.2.1
The effects on environment............................................................................................. 5
2.2.2
The effects on human health ........................................................................................... 6
3.
Recommendations / Suggestions – solutions .................................................................................. 6
4.
Conclusion ...................................................................................................................................... 8
5.
Bibliography .................................................................................................................................... 9
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1. Introduction
Global warming has continued in these three decades, and we are witnessing an
accelerating rise in sea level. Greenhouse gas emissions are continuing to increase year after
year due to human activities, the root cause of global warming. Five years ago, the Fifth
Assessment Report of the IPCC provided scientific input into the Paris Agreement to
reinforce the global response to the climate change threat by keeping global temperature rises
below 2oC above pre-industrial levels and pursuing efforts to limit Temperature increases
above preindustrial level by 5oC.
Most countries agree that the rate of global warming close to 2 ° C would not be secure
and, at that moment, there is only limited awareness of the impact of the 1.5 ° C warming
threshold on climate-related threats and their optimistic mitigation and feasibility scales. The
parties to the Paris Agreement therefore invited the IPCC to evaluate the effect of global
warming 1.5 ° C above pre-industrial rates and potential emission pathways that would
achieve this enhanced global ambition.
A frisson Study on Global Warming 1.5oC was presented by the IPCC, which confirms
that climate change has affected people, ecosystems and livelihoods around the world. This
shows that the laws of chemistry and physics can limit warming to 1.5oC but unparalleled
change will be needed in all facets of society. He found significant advantages, rather than
2oC or higher, in maintaining heating up to 1.5oC.
The study also shows that, in the Paris Agreement, the existing trends in emissions and
the extent of international expectations shown by nationally defined contributions deviate
from the direction of restricting warming to below 2 ° C. Without ambitious and urgent
mitigation ambitions in the coming years, leading to a sharp reduction in greenhouse gas
emissions by 2030, in the following decades, global warming will exceed 1.5 ° C, resulting in
the loss of the most fragile ecosystems and the most vulnerable communities in crisis.
(Masson-Delmotte, 2018). Moreover we need more international cooperation. The IPCC
report is clear that without the need to eliminate carbon dioxide from the atmosphere at the
end of this century, we will not be able to restrict the warming to 1.5C. While we can do this
by expanding forests and other plants, we do need to explore other options, including carbon
capture and storage growth.
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Although several green campaigns oppose this technology because they fear that it could
damage the burden on the fossil fuel industry, we cannot close it as an option. Collective
international efforts are needed to speed up this area's research, development, and
dissemination. While it is clear that it is theoretically possible to restrict the heating to 1.5C,
without strong political commitment and leadership we will not succeed. The government
must consider the great dangers that we face from poor decisions or concerns, and the great
opportunities that the rapid transition to a clean and sustainable economy has created.
Governments, companies and societies need to accept this transition: this is the tale of the
development of the 21st century. Cities need to be built so we can stay in them, breathe and
travel freely. And we have to reverse the deterioration of our water, soil and forests to be
more competitive and to consume more carbon dioxide. (stern, 2018)
2. Causes and Effects
2.1
Determine Causes of the greenhouse effect
The greenhouse effect, which is a natural phenomenon and intensified by human
activity, is triggered by two factors. The natural factors have a positive effect on the human
being and the planet itself, while the enhanced factor has the negative effect leading to global
warming.
2.1.1
Natural greenhouse effect
The greenhouse effect is an increase in Earth's temperature due to certain gasses on
Earth that the atmosphere (for example , water vapour, carbon dioxide, nitrous oxide, ozone,
methane) traps input energy from the sun. These gasses are usually referred to as greenhouse
gases, as they act like greenhouse glass panels. Greenhouse glass panels let the light in, but
prevent the heat from escaping and this is close to the earth's impact.
Sunlight enters the atmosphere of the earth, passing by greenhouse gases. When it
reaches the earth's surface, the energy of the sun is absorbed by land, water and the biosphere.
This energy is sent back within the atmosphere after it is consumed. Some carbon moves
back into space but much of it stays trapped by greenhouse gases in the atmosphere. This is a
completely natural process and all heat will return to space without these gasses and the
Earth's average temperature will be around 30 degrees Celsius (54 degrees Fahrenheit)
cooler. (Buha, 2011)
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The earth's surface warms up during the day and cools down at night, releasing heat in
the form of infrared IR radiation coming into space from the atmosphere. But before any of
this infrared radiation can come out into space from the atmosphere, greenhouse gases
(GHGs) absorb it into the atmosphere. The absorption from this emission of greenhouse gases
allows humans to keep the earth warm. Without the greenhouse effect the temperature of the
planet will be lower than 30 degrees Celsius and we will be too cold to survive. Carbon
dioxide, ozone, methane and water vapour are the principal greenhouse gases (GHGs)
responsible for the greenhouse effect. Although these gasses account for 1% of our
atmosphere, they serve as dense warm blankets outside that cover the earth and regulate
climate regulation. (Rinkesh, 2015)
2.1.2
Enhanced or Man-made greenhouse effect
Human actions releasing greenhouse gasses into the atmosphere are causing the
portion of the greenhouse effect man-made. Some human activities also produce greenhouse
gases, and these atmospheric gasses continue to grow. Human behaviour has dramatically
altered the composition of the Earth's atmosphere due to greenhouse gas emissions since the
beginning of the 20th century. Such human activities include burning fossil fuels at the
factory such as coal, oil, gas and peat, carbon pollution from automobile exhausts, methane
and nitrous oxide emissions from agriculture, and changes in land use such as deforestation
and urbanization. (Gaeilge, 2018)
Burning fossil fuels produces large amounts of the greenhouse gas carbon dioxide
(CO2). Along with other greenhouse gases such as methane, nitrous oxide, and
chlorofluorocarbons (CFCs), carbon dioxide changes the atmosphere composition and
contributes to the greenhouse effect. These are all gasses which trap heat when the earth is
illuminated by the sun; its heat is trapped and prevented from returning to space similar to
how heat is trapped in a greenhouse by glass. Population growth has also led to increased
demand for food, clothes, and shelter. Cities have built new factories that release certain
harmful gases into the atmosphere, increasing the greenhouse effect. More people also mean
greater use of fossil fuels which, in effect, exacerbated the problem. (Rinkesh, 2015)
In the Industrial Waste and Final Disposal Sites, Several types of industries involved
in the manufacture of cement, fertilizer, coal mining, oil extraction which produces hazardous
landfills Garbage also produces carbon dioxide and methane gas which contributes greatly to
the greenhouse effect. Shift in land use also constitutes a significant source of greenhouse gas
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emissions. For instance, deforestation releases carbon dioxide emissions into the atmosphere
that were previously stored on the earth's surface in the form of trees and other plants, or
trapped in the ground, because cutting and burning trees often contain a lot of carbon dioxide.
A group of greenhouse gases called chlorofluorocarbons were also used in aerosols, such as
hairspray cans, refrigerators and plastic foam manufacturing. (Rinkesh, 2015)
2.2
Determine the greenhouse effects
Global warming is the major effect of rising concentrations of atmospheric
greenhouse gases. This warming changes the earth's climate system in different ways
including land, atmosphere, oceans and ice. The greenhouse effect has many negative effects
on human beings as well as on the environment in general and particularly on the ecosystem.
2.2.1
The effects on environment
Global warming affects the climate in many ways including;
 Increased Sea Level: Higher temperatures can induce expansion of the sea water and
oceans. Snow melting can spill into the sea in Antarctica and in Greenland.
Worldwide, at the beginning of the next century, sea levels will increase; maybe up to
20 to 40 cm. higher sea levels are threatening the world's poorly coastal areas, such as
the Netherlands and Bangladesh. Flooding can endanger millions of people and land
areas around the world. A lot of people have to leave their homes and flooding will
destroy large farms.
 Increased Average Temperature: The term global warming refers to an increase in
atmospheric mean temperature. So the atmosphere's surface temperature may be
different at a given time and period. Growing temperatures are causing faster
evaporation on ground. Many arid regions are experiencing more extreme drought
like Western America, South Africa, India and Australia. As the temperature
increases, more water evaporates out of the ocean; the storm activity will increase.
This includes stronger hurricanes, Pacific typhoons, and increasing frequency of local
storms and tornadoes, which are now more common in America and the east coast of
Asia resulting in flooding and property damage.
 Changes in Rain Pattern: The main cause of pressure differences, which govern the
rainfall system and its quantity, is differential heating of Layers in the atmosphere.
Air travels from high pressure to low pressure areas, it becomes a source of rain when
going over a body of water and vice versa. An increase in average temperature
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significantly affects the region of pressure and wind direction, and ultimately affects
patterns of rainfall.
 Changes in Seasonal Character: It is noted, due to changes in air temperature and
rainfall patterns that the seasonal character has changed a lot around the world. The
duration of winter has been extended in many places and more severe in some places
the summer together. Thus uncertainty is more growing degree of weather
dependence. Rainfall before the rainy season (summer rainfall) in India, for example,
has been greatly reduced, while the Typhoon rain has become a regular feature during
November-December. (Khan, 2017)
2.2.2
The effects on human health
The greenhouse effect is also directly affecting human health through:
 Food shortages: The Food and Agriculture Organization of the United Nations (FAO)
reports that climate change poses serious concerns about food availability: in his last
biennial report on the state of the world's food and agriculture, he cautioned that a
decrease in agricultural production would cause food shortages, affecting sub-Saharan
Africa and South Asia the most seriously.
 The spread of diseases and pandemics: In addition to problems directly caused by
pollution, the World Health Organization (WHO) reports that global warming will
spread infectious diseases such as malaria, cholera or dengue to more areas of the
world. Extreme heat, on the other hand, will increase and deepen cardiovascular and
respiratory problems. (SASSEN, 2020)
3. Recommendations / Suggestions – solutions
Given considerable uncertainty, global warming poses a future danger necessary to
warrant existing behaviour. Present activities that may minimize greenhouse warming
intensity and magnitude; others can brace humans and natural plant and animal environments
for potential changes to circumstances that will follow global warming, including:
 CO2 reduction emissions from fuel combustion - for example – by switching fuel to
natural gas or by increasing the use of renewable energy, which also helps reduce
other pollutant emissions which causes acidification, tropospheric ozone and
decreased air quality; reduction of methane emissions too help reduce general
background tropospheric ozone levels.
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 Moving away from fossil fuels: You can accomplish moving away from fossil fuels
by lowering the expanse of electricity produced from coal and gas. Growing the
amount of electricity from clean, renewable energy sources such as solar and wind
power will also help lower fossil fuel usage. Additionally, joining numerous
campaigns for greater action by diverse groups on climate change and advising the
key leaders to bring the populations back on track and fulfil the targets of the Paris
Agreement.
 Improved agricultural practices along: with paper recycling and forest management balancing the amount of wood taken with the number of new trees growing - can
quickly eliminate this large amount of emissions. And when buying wood products,
such as furniture or floors, buying used or failed items, certified wood has been
harvested sustainably. The Amazon and other forests are not only the curvature of the
earth; they may also be the best short-term human hope for curbing climate change
(Biello, 2007).
 Massive reforestation: It is really important to avoid tree cutting and deforestation to
restore the forests once again. Via reforestation and afforestation, more trees are
planted. Globally, 40 per cent of all wood is used to produce paper products, and the
annual demand for paper grows by 2 to 3 per cent. This means that the paper industry
is now processing plants rapidly. Responsible pulp and paper operations can bring
many benefits for forests, local economies, and residents, particularly in rural areas.
Many pulp and paper companies show leadership in responsible forestry and planting
management, as well as in sustainable processing practices and recycled materials
(WWF, 2018).
 Infrastructure Improvement - Worldwide, buildings account for around one-third of
all greenhouse gas emissions (43 per cent in the US alone), while investing in dense
insulation and other cost-effective temperature-saving steps will save energy in the
long run. The energy grid is either full or at capacity but the power demand continues
to rise. And poor roads can make even the most powerful cars less fuel effective.
Investing in new infrastructure, or upgrading existing highways and power lines
dramatically would help reduce greenhouse gas emissions and encourage economic
development in developed countries (Biello, 2007).
 Be Efficient - Potentially simpler and even greater impact can be made by doing more
with less. Citizens of many developed countries are professional energy wasters,
either by driving a gas-intensive sports vehicle or leaving the lights on when not
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indoors. Good driving - and good car maintenance, such as making sure the tires
bounce properly - can limit the amount of greenhouse gas emissions from vehicles
and, perhaps more importantly, reduce the frequency of payments at the pump (Biello,
2007).
4. Conclusion
In conclusion, the greenhouse effect is an important factor for the earth, the natural
influence of the greenhouse on earth is to keep it warms enough for humans to live, but the
earth will be warmer than usual because the greenhouse effect is getting bigger because of
human activity. This will create problems for humans, plants, and animals. In short, the
greenhouse effect is nothing but a natural process designed by nature that helps heat the
surface of the earth and helps maintain ecological balance. But if it's too high it will have a
negative effect on the atmosphere and living things.
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5. Bibliography
Biello, D. (2007, November 26). 10 Solutions for Climate Change. Retrieved June 15, 2020, from
scientificamerican.com: https://www.scientificamerican.com/article/10-solutions-forclimate-change/
Buha, A. (2011). The Greenhouse Effect . Toxipedia , 2-3.
Gaeilge. (2018, August 24). Causes and greenhouse effect. Retrieved June 15, 2020, from Geological
survey: https://www.gsi.ie/en-ie/geoscience-topics/climate-change/Pages/Causes-and-thegreenhouse-effect.aspx
Khan, M. Z. (2017). Causes and Consequences of Greenhouse Effect & Its Catastrophic Problems for
Earth. International Journal of Sustainability Management and Information Technologies, 3637.
Masson-Delmotte, V. P.-O. ( 2018). Global Warming of 1.5°C.An IPCC Special Report on the impacts
of global warming of 1.5°C above pre-industrial levels and. IPCC, v-vi.
Rinkesh. (2015, February 20). What is the Greenhouse Effect? Retrieved June 15, 2020, from
conserve energy future.com: https://www.conserve-energyfuture.com/greenhouseeffectcauses.php
SASSEN, S. (2020, June 1). Desertification and flooding among the consequences of the greenhouse
effect. Retrieved June 15, 2020, from iberdrola.com:
https://www.iberdrola.com/environment/greenhouse-effects-consequences-and-impacts
stern, N. (2018, October 8). We must reduce green house gas emmisions to net zero or face more
floods. Retrieved June 14, 2020, from The Guardian:
https://www.theguardian.com/environment/2018/oct/08/we-must-reduce-greenhousegas-emissions-to-net-zero-or-face-more-floods
WWF. (2018, August 09). Legendary undercover investigators protect forests. Retrieved June 15,
2020, from worldwildlife.org/: https://www.worldwildlife.org/stories/legendary-undercoverinvestigators-protect-forests
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