Matric number: RUN/ECO/22/13368

Course code: ECO 214

Department: ECONOMICS
Assignment topic:

THE EFFECT OF DEFORESTATION ON ECONOMIC

POLLUTION AND ECONOMIC DEVELOPMENT
INTRODUCTION

Economic pollution and development are both negatively impacted by deforestation. It

contributes to greenhouse gas emissions, air and water pollution, ecosystem service loss, soil
degradation, and the costs of climate change. Agriculture and land use conversion contribute to
food production, while the wood sector produces economic revenue and creates jobs.
Deforestation, on the other hand, causes biodiversity loss, soil degradation, and climate change
costs. For long-term economic viability and growth, sustainable forest management and
conservation initiatives can assist strike a balance between economic activity and the
preservation of important ecological services. Transitioning to more sustainable practices can
help to offset the negative economic consequences of deforestation and promote a greener, more
resilient economy.

DEFINITION OF DEFORESTATION

Deforestation is the process of removing substantial tracts of forest or forested land from their
natural state, usually in order to utilize the land for purposes other than agriculture, urban
development, mining, or infrastructural development. It involves the felling of trees and other
immense components of forested land. Deforestation is often defined in contrast to afforestation
which refers to the growing of Trees and Forested Land for various relative purposes. The
natural ecosystems that trees sustain as well as the trees themselves are permanently destroyed.
Human activities like logging, slash-and-burn farming, and industrial expansion, which can have
negative environmental effects, are frequently the main causes of deforestation.

Deforestation refers to the decrease in forest areas across the worlds that are lost for other uses
such as agricultural croplands, urbanization, or mining activities. Greatly accelerated by human
activities since 1960, deforestation has been negatively affecting natural ecosystems,
biodiversity, and the climate. The UN’s Food and Agriculture Organization estimates the annual
rate of deforestation to be around 1.3 million km2 per decade.

THE CAUSES OF DEFORESTATION

Deforestation is caused by a variety of human and natural forces. Natural processes that induce
deforestation include natural forest fires and parasite-caused illnesses. Human activities,
however, are one of the primary drivers of worldwide deforestation. According to the Food and
Agriculture Organization (FAO), agricultural growth was responsible for roughly 80% of
worldwide deforestation, with infrastructure improvements such as roads and dams, as well as
mining and urbanization, accounting for the remaining sources of deforestation.

 Agriculture is the Number 1 Cause of Deforestation

Agriculture is the main causes of deforestation, with subsistence agriculture accounting for 33%
of the cause. 40% of forest loss is caused by commercial or industrial agriculture, which includes
field crops and animals. Due to the huge acreage required for livestock and food production,
livestock accounts for 14% of worldwide deforestation.

 Deforestation Caused By New Constructions

Human infrastructure is responsible for 10% of deforestation, with transportation,

transformation, and energy generating infrastructure accounting for the remaining 90%. Roads,
trains, ports, and airports convey items such as fruits, minerals, and fossil fuels to trade centres
and processing plants. For varied items, large extraction, transportation, and transformation
infrastructures are required.

 How Urbanization Is Causing Deforestation

The population movement from rural to urban regions is also contributing to deforestation (5%,
according to FAO). This urbanization, which is anticipated to result in 68% of the world's
population living in cities by 2050, is causing an exponential increase of housing and
consumption locations. And, when cities grow in size to accommodate more people, they push
against the natural boundaries that surround them, frequently resulting in destruction. This is one
of the factors contributing to deforestation.

DEFORESTATION EFFECTS

Deforestation has several repercussions for natural ecosystems and offers severe challenges to
the planet's resilience. Let's look at the primary consequences of deforestation to better
understand why it's harmful for the environment.

 The Effects of Deforestation on Biodiversity

Deforestation endangers biodiversity because forests are critical habitats for rare and vulnerable
species, comprising 80% of the Earth's land animals and plants. Human actions endanger
ecosystems, cause natural imbalances, and endanger life. Trees offer shade, cooler temperatures,
food, and shelter for animals, emphasizing the natural world's deep interconnectedness.

 The Effects of Deforestation on Local People and Their Livelihoods

Healthy forests provide a living for 1.6 billion people worldwide, including one billion of the
poorest. However, in developing nations such as Borneo, Indonesia, Vietnam, Brazil, and
Mexico, inadequate land tenure regimes allow large corporations to exploit these areas,
disturbing local livelihoods. Locals have two options: forsake their property and relocate, or
work for corporations on isolated plantations, where they frequently face unjust salaries and
brutal working conditions. To safeguard their family and crops, owners may split revenues with
local cartels.

 Deforestation for Food May Lead to Food Insecurity in the Future

Soil erosion has a moderate or severe impact on 52% of all agricultural land today. Long-term, a
lack of good, nutritious soil may result in low harvests and food poverty.

 Soil Erosion is One of the Consequences of Deforestation

Deforestation damages and weakens the soil. Forested soils are often more resistant to erosion,
harsh weather, and extreme weather occurrences, as well as higher in organic content. This
occurs mostly because roots help anchor trees in the ground and the sun-blocking tree cover
allows the soil to gradually dry out. As a result, deforestation is likely to make the soil more
brittle, making the area more prone to natural catastrophes such as landslides and floods.

 Deforestation Affects and Contributes to Climate Change

Deforestation contributes greatly to climate change because trees collect and store CO2
throughout their lifetimes. Deforestation adds CO2 to the atmosphere and lowers the planet's
ability to trap and store CO2, leading to the greenhouse effect and climate change. Despite
accounting for 24% of greenhouse gas emissions, deforestation is estimated to be responsible for
10-15% of all anthropogenic CO2 emissions.

 Atmospheric

Deforestation contributes around 12% of total anthropogenic carbon dioxide emissions, making
it a substantial contribution to global warming. In the previous two decades, annual carbon
emissions from tropical deforestation have more than quadrupled, with standing tropical forests
reducing the average world temperature by more than 1°C. Large-scale deforestation has a net
global cooling effect, but tropical deforestation has a significant warming effect due to
biophysical reasons. According to one study, logged and structurally damaged tropical forests are
carbon sources for at least a decade, implying that the tropical forest carbon sink is less than
previously assumed.

 Reducing emissions from deforestation and forest degradation (REDD)

Reduced emissions from deforestation and forest degradation (REDD) have emerged as a new
possibility to supplement existing climate measures in poor nations. The concept is to provide
financial compensation for reduced greenhouse gas (GHG) emissions caused by deforestation
and forest degradation." REDD can be viewed as an alternative to the emissions trading system,
in which polluters must pay for licenses to emit certain pollutants (i.e. CO2).

 Soil

Deforestation lowers litter cover, which protects against surface runoff, resulting in an erosion
rate of 2 metric tons per square kilometre. This can be beneficial in tropical rain forest soils that
have been leached. Erosion is further exacerbated by forestry operations such as roads and
motorized equipment. However, higher erosion might occur as a result of the loss of grass and
shrubs, which reinforce the soil and make sloping terrain more prone to landslides.

THE EFFECT OF DEFORESTATION ON ECONOMIC POLLUTION AND ECONOMIC

DEVELOPMENT

THE EFFECT OF DEFORESTATION ON ECONOMIC POLLUTION

Deforestation significantly impacts economic pollution, causing environmental degradation,

increased greenhouse gas emissions, and global consequences.

 Greenhouse Gas Emissions

Deforestation causes economic pollution and health problems by releasing CO2 and greenhouse
gases into the environment. Trees absorb CO2 during photosynthesis and operate as natural
carbon sinks. Clearing or burning forests increases healthcare expenses, damages infrastructure,
and necessitates costly climate change mitigation and adaptation measures.

 Air Pollution

Deforestation often involves burning trees and vegetation to clear land, releasing particulate
matter and harmful pollutants into the air. This air pollution can lead to respiratory problems and
other health issues for nearby communities, increasing healthcare costs and reducing productivity
in the workforce.

 Water Pollution
Deforestation causes soil erosion, sediment runoff, and water pollution, harming aquatic
ecosystems and agriculture. Economic costs include expensive treatment facilities, reduced
fishery yields, and negative impacts on tourism and recreational industries.

 Loss of Ecosystem Service

Forests offer essential ecosystem services, such as natural water filters and pollination,
contributing to economic well-being. Deforestation can result in higher costs for water treatment
and agricultural inputs.

 Economic Loss in the Tourism Sector

Deforestation can diminish the natural beauty and biodiversity of an area, affecting tourism
revenue. Many tourists are drawn to pristine and diverse natural environments, and the loss of
forests and wildlife can deter potential visitors, leading to reduced revenue for local economies.

 Impact on Agriculture

Deforestation can disrupt local climate patterns and rainfall, affecting agricultural productivity.
Reduced forest cover can lead to higher temperatures and more extreme weather events,
impacting crop yields and livestock production. This can result in food scarcity and increased
food prices, impacting economies that heavily rely on agriculture.

THE EFFECT OF DEFORESTATION ON ECONOMIC DEVELOPMENT

Deforestation can have both positive and negative impacts on economic development:

 Positive Impacts

Logging and Timber Industry: The timber industry can generate economic revenue and create
jobs in regions where deforestation occurs. Harvesting and selling wood products contribute to
local and national economies.

Agriculture and Land Use Conversion: Deforestation can open up land for agricultural activities,
contributing to food production and potentially boosting rural economies.

 Negative Impacts
Loss of Biodiversity: The destruction of forests leads to the loss of biodiversity, which can
negatively impact ecotourism and bioprospecting industries. Many potential sources of
medicines and other valuable resources are found in forest ecosystems.

 Soil Degradation

As mentioned earlier, deforestation can lead to soil degradation, reducing the long-term
productivity of the land and potentially hampering agricultural development.

 Climate Change Costs

The economic impacts of climate change resulting from deforestation, such as extreme weather
events, sea-level rise, and disruption of supply chains, can be substantial and costly to address.

SUMMERY

Economic pollution and development are both negatively impacted by deforestation. It

contributes to greenhouse gas emissions, air and water pollution, ecosystem service loss, soil
degradation, and the costs of climate change. Agriculture and land use conversion contribute to
food production, while the wood sector produces economic revenue and creates jobs.
Deforestation, on the other hand, causes biodiversity loss, soil degradation, and climate change
costs. For long-term economic viability and growth, sustainable forest management and
conservation initiatives can assist strike a balance between economic activity and the
preservation of important ecological services. Transitioning to more sustainable practices can
help to offset the negative economic consequences of deforestation and promote a greener, more
resilient economy.