Question

Explain how the supply-demand reversal of environmental resources account for the current environmental crisis.

Answer 1

1. In the early stages of civilisation, the extraction of natural resources was much lower than their rate of regeneration.
2. In other words, the demand for environmental resources was less than their supply, and human activities remained within the absorptive capacity of the environment.
3. With rapid population growth, industrialisation and rising consumption, the demand for natural resources has increased greatly.
4. Resources are now being extracted and used at a much faster rate than they can be regenerated.
5. Thus, the demand for environmental resources has become greater than their supply. This change is known as the supply-demand reversal of environmental resources.
6. At the same time, increasing production and consumption have also created large amounts of pollution and waste, often beyond the environment’s capacity to absorb them.
7. As a result, natural resources are being depleted, and environmental quality is deteriorating.
8. This supply-demand reversal has contributed to the current environmental crisis, including problems such as global warming, ozone depletion, land degradation, water scarcity and loss of biodiversity.
9. For example, greenhouse-gas emissions contribute to global warming, while excessive use of CFCs has contributed to ozone depletion.

Therefore, when the demand for environmental resources exceeds their natural supply and regenerative capacity, and pollution exceeds the environment’s absorptive capacity, an environmental crisis occurs.