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Environmental Economics PART ONE 1. The word environment is a general term for all external conditions, influences and forces that affect and modify the life and development of all organisms. 2. Our standard of living is measured by the quantity of resources used. The environmental standard of living is measured by the amount of reserves left. Which means the standards of living are considered high when resource reserves are still available, instead of used up. The equations …

…we need trees for paper, furniture and so on, but if we take out all the trees then it will destroy the environment as trees help stop salinity, take in carbon dioxide and provides a habitat for all different organisms. A healthy environment and economic growth cannot co-exist as an advance in one can lead to the downfall of the other. Economic growth causes problems in the environment (i.e. resource depletion, greenhouse and pollution).